Answer:
d. INTC: 2.36 TXN: 3.43
Explanation:
The property , plant equipment turnover is the ratio of sales divided by the amount of PPE as shown below:
PPE turnover=sales/(beginning PPE+ending PPE)/2
Intel Corporation (INTC):
PPE turnover=$38,826/($15,768+$17,111)/2
PPE turnover=$38,826/$16,439.50
PPE turnover=2.36 times
Texas Instruments (TXN):
PPE turnover=$13,392/( $3,918+$3,899)/2
PPE turnover=$13,392/$3,908.50
PPE turnover=3.43 times
The correct option is D
Answer:
4.5%
Explanation:
Stock R (Beta) = 1.5
Stock S (Beta) = 0.75
Expected rate of return on an average stock (Rm)= 10%
Risk free rate (Rf) = 4%
Required Return (Re) = Rf +(Rm-Rf) B
Required Return = 0.04 + (0.10-0.04) B
Required Return = 0.04 + 0.06B
Stock R = 0.04 + (0.06 * 1.50)
Stock R = 0.04 + 0.09
Stock R = 0.13
Stock R = 13%
Stock S = 0.04 + (0.06 * 0.75)
Stock S = 0.04 + 0.045
Stock S = 0.085
Stock S = 8.5%
Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.
= 13% - 8.5%
= 4.5%
<span> making on time payments on a debt
</span><span> purchasing a large kitchen appliance with cash
</span><span> saving 25% of every paycheck</span>
