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Eduardwww [97]
4 years ago
7

Stock Y has a beta of 1.4 and an expected return of 14.7 percent. Stock Z has a beta of 0.7 and an expected return of 8.7 percen

t. If the risk-free rate is 5.2 percent and the market risk premium is 6.2 percent, the reward-to-risk ratios for stocks Y and Z are _____ and _____ percent, respectively. Since the SML reward-to-risk is ______ percent, Stock Y is undervalued or overvalued and Stock Z is undervalued or overvalued.
Business
1 answer:
victus00 [196]4 years ago
7 0

Answer:

ibxZx jnzscv dbfsdszADscfvgbfgdvc

Explanation:

You might be interested in
You own 100 shares a $50 par value preferred stock. The stock has a 12% dividend rate, and a current market price of $85 per sha
andriy [413]

Answer:

Option (a) is correct.

Explanation:

Value of stock:

= Present value of all cash flows

=Dividend[\frac{1-\frac{1}{(1+r)^{n} } }{r}] + Par\ value[\frac{1}{(1+r)^{n} }]

=50\times 0.12[\frac{1-\frac{1}{(1.08)^{5} } }{0.08}] + 50[\frac{1}{(1.08)^{5} }]

     = $6 × 3.9927 + $50 × 0.6806

     = $23.96 + $34.03

     = $57.99 or $58

                   

5 0
4 years ago
The cost at which a company records purchases of machinery and equipment should include which of the following?
Tasya [4]

The cost at which a company records purchases of machinery and equipment should include all the under listed:

  • Operating costs
  • Purchase price
  • Installation.
  • Shipping fees
  • Taxes

<h3>What is acquisition cost?</h3>

Acquisition cost refers to all the cost associated with the purchase of an asset.  When calculating how a company records purchases of machinery and equipment, it should be the all inclusive cost of the equipment.

The cost acquisition cost should include :

  • All transportation cost
  • Installation cost
  • Site preparation
  • Sales or other taxes and testing costs prior to placing the equipment into production.

Learn more about acquisition cost here : brainly.com/question/25899244

7 0
3 years ago
A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. The
faltersainse [42]

Answer:

$80,000

Explanation:

Given that the sales revenue = $1000000

Labor= $600,000

Capital= $150,000

Materials =$200,000

Total expenditure= $(600,000+150,000+200,000)=$950,000

Profit=$1000,000-$950,000=$50,000

Income from renting the space for a year=$30,000

Total economic profit last year= $50,000+$30,000 =$80,000

4 0
3 years ago
Patents discourage companies from committing themselves to extensive basic research.A. TrueB. False
djverab [1.8K]

Answer:

B. False

Explanation:

Patents may be defines as when a legal authority or permission granting a right for a given time, in particular exclusive and right to exclude others from the production, use, or sale of an invention.

Therefore the given statement is wrong as patents are not discouraging the organizations from carrying out to extensive primary research so, the correct answer is False.

8 0
4 years ago
Sales has being overcast by 5000
Leno4ka [110]

Answer:

When sales are overcast, it means that the amount of credit sales recorded is higher than the actual amount of credit sales made.

To fix this, send the overcasted amount to the Suspense account and debit the Sales account.

Date    Account Title                                            Debit                    Credit

           Sales                                                        $5,000

           Suspense a/c                                                                        $5,000

7 0
3 years ago
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