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s344n2d4d5 [400]
3 years ago
10

HR Industries (HRI) has a beta of 1.8, while LR Industries' (LRI) beta is 0.6. The risk-free rate is 5.5%, and the required rate

of return on a stock with a beta of 1 is 12.5%. The expected rate of inflation built into rRF falls by 1.5 percentage points, the real risk-free rate remains constant, the required return on the market falls to 10.5%, and all betas remain constant. After all of these changes, what will be the difference (in percentage points) in the required returns for HRI and LRI? A. 3.8% B. 0.9% C. 1.5% D. 2.4% E. 3.5%
Business
1 answer:
inna [77]3 years ago
7 0

Answer:

None of above options are correct. 7.8% .

Explanation:

Rf = 5.5% - 1.5% = 4%

Rhri = 4% + 1.8*(10.5% - 4%) = 15.7%

Rlri = 4% + 0.6*(10.5% - 4%) = 7.9%

Difference = 15.7% - 7.9% = 7.8%

The difference (in percentage points) in the required returns for HRI and LRI is 7.8%

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A company needs 550,000 items per year. It costs the company $330 to prepare a production run of these items and $5 to produce e
Svetlanka [38]

Answer:

Company A

The number of items that should be produced in each run to minimize total costs of production and storage is:

= 22,000 units

Explanation:

a) Data and Calculations:

Total annual demand = 550,000 units

Cost per production run = $330

Cost per unit = $5

Storage (holding) cost per item = $0.75

The number of items that should be produced in each run to minimize total costs of production and storage is given by Economic Order Quantity (EOQ) formula

= square root of (2 * 550,000 * $330)/$0.75

= square root of $363,000,000/$0.75

= square root of 484,000,000

= 22,000 units

6 0
2 years ago
Nero signs a check "pay to the order of Olive" drawn on Nero's account in Plum Bank- Olive signs the back of the check. Secondar
9966 [12]

Answer:

A. Nero and Olive only

Explanation:

The primary liability is on Olive, and secondary liability is on both Nero and Olive. Secondary liability is a legal obligation that a party accepts on behalf of another party. In this case, Nero and Olive are liable for each other.

The bank is not liable for any action related to the check except for those directly related to the bank's operation.

6 0
3 years ago
A college student has a new job, and must balance classes and commute times to work. the student takes two weeks to drive from c
ElenaW [278]

The dependent variable is the<u> "average time in minutes it takes to drive from campus to workplace. "</u>


A dependent variable is the thing that you measure in the analysis and what is influenced amid the investigation. The dependent variable reacts to the independent variable. It is called dependent since it "depends" on the independent variable. In a logical trial, you can't have a dependent variable without an independent variable.

3 0
3 years ago
Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $43,300 in tailoring fee
Luba_88 [7]

Answer:

net income = $31,500

Explanation:

given data

collect tailoring fees = $43,300

paid expenses = $12,300

Depreciation expense=  $2,500

Accounts receivable =  $1,050

supplies increased = $4,300

liabilities increased = $2,350

to find out

accrual basis net income

solution

we get here net income by given expression that is

net income = tailoring fees - expenses paid + account receivable + supplies increased - liabilities increased - Depreciation expense .......1

put here value

net income =  $43,300 - $12,300 + $1,050 + $4,300 - $2,350 - $2,500

net income = $31,500

8 0
3 years ago
How should the headings of a resume be formatted so that they are clear and easy to find?
never [62]
Answer: Capitalized and bold
7 0
3 years ago
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