Answer:
(a) 4,000,000
(b) 3,200,000
(c) 3,170,000
(d) $3,200,000
(e) $750,000
Explanation:
(a) Number of shares authorized = 4,000,000
(b) Number of shares issued = 3,200,000
(c) Number of shares outstanding:
= Number of shares issued - Acquired shares as treasury stock
= 3,200,000 - 30,000
= 3,170,000
(d) Balance of the Common Stock account:
= Number of shares issued × Par value
= 3,200,000 × $1
= $3,200,000
(e) Balance of the Treasury Stock account:
= Acquired shares as treasury stock × Price per share
= 30,000 × $25
= $750,000
Answer:
Expected return on the market = 11.58%
Explanation:
MRP = Market risk premium
RFR = Risk free rate
ERM = Expected return on market
MRP = 8.71%
RFR = 0.155 - (1.45*0.0871) = 0.155 - 0.126295 = 0.0287
RFR = 2.87%
ERM = MRP + RFR = 8.71% + 2.87%
ERM = 11.58%
Hope this helps!
Answer:
the expected return on the portfolio is $7,052
Explanation:
The computation of the expected return on the portfolio is shown below:
Stock A return = $2,600 + 12% of 2600 = $2,912
And,
Stock B return = $3,600 + 15% of 3600 = $4,140
So,
Expected return on portfolio is
= $2,912 + $4,140
= $7,052
hence, the expected return on the portfolio is $7,052
Answer:
Demand for the coffee is inelastic
Explanation:
Inelastic demand is when individuals can't quit any pretence of utilising a good. People can't stop drinking coffee despite the fact that they need to cut down on caffeine consumption. The demand for coffee is inelastic because change in the price or the after effects of coffee does not change the demand for coffee consumption.
