Answer:
- Single asset = Coefficient of Variation
- Portfolio = Beta
Explanation:
When dealing with standalone risk, coefficient of variation is best because it shows the amount by which the asset's returns might deviate from the average returns of the market.
As for portfolio assets that are well diversified, the best measure would be beta because diversified portfolios deal with systematic risk and beta shows the movement of the portfolio in relation to the market and so will show that systematic risk.
The price of the share would be calculated as -
Price of share = Annual constant dividend / Cost of equity
Given, cost of equity = 10.5 %
Annual constant dividend = $ 1.60
Price of share = $ 1.60 ÷ 10.50 %
Price of share = $ 15.238 or $ 15.24
Answer:
A. $424,000
Explanation:
current income = Taxable income - Federal tax + Depreciation disallowed + net capital loss carryover
= $400,000 - $136,000 + ($200,000 - $60,000) + $20,000
= $424000
Therefore, The corporation's current earnings and profits for 20X3 would be $424000.
Hello!
The correct answer for the blank is: Operating profit margin.
I really hope you found this helpful! :)
Answer:
PV= $1,173.44
Explanation:
Giving the following information:
your tenant has agreed to pay $150 per month. There are eight months left on the lease, the appropriate interest rate is 6%, compounded monthly.
<u>To calculate the net present value, first, we need to calculate the final value and then use the present value formula.</u>
FV= {A*[(1+i)^n-1]}/i
A= annual pay= 150
i=0.06/12= 0.005
n=8
FV= {140[(1.005^8)-1]}/0.005= 1,221.21
Now, we calculate the present value:
PV= FV/(1+i)^n
PV= 1,221.21/1.005^8= $1,173.44
