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4 years ago

A stock has a beta of 1.3 and an expected return of 12.8 percent. a risk-free asset currently earns 4.3 percent.

1 answer:

6 0

The expected return on this portfolio will be given by:
E[P]=Rf+(E[Rm]-Rf)β
Where:
Rf=Risk Free interest rate
Rm=Return on the market portfolio
β= Market Beta
The return on our portfolio will be:
E[p]=0.043+(0.128-0.043)0.013
=0.043+0.085*0.013
=0.044105
=4.4105%

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strengths, weaknesses, opportunities and threats.

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3 years ago

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the

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Answer:

Product A Product B Product C

Sales value after further processing $494,940 $656,030 $248,820

(14,600*$33.90), (22,700*$28.90),

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Costs of further processing $91,990 $133,305 $62,660

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Less: Sales value at split-off point $408,800 $499,400 $197,200

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Net advantage / (Disadvantage) $(5,850) $23,325 $(11,040)

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3 years ago

The following information is available for Dakota Company: Product 1 Product 2 Sales $1,400,000 $1,800,000 Direct materials (200

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Answer:

$380,000

Explanation:

Particulars Product 1 (Amount)

Sales $1,400,000

(-) Direct materials ($200,000)

(-) Direct labor ($600,000)

(-) Manufacturing overhead

Batch level ($400,000*20/80) ($100,000)

Product line level ($600,000*10/50) ($120,000)

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3 years ago

Which of the following items are allowed when calculating an individual taxpayer's alternative minimum tax?a. Standard deduction

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Answer:

The correct answer is letter "D": All of the above.

Explanation:

Alternative Minimum Tax (AMT) is an action taken by the Internal Revenue Service (IRS) to encourage every taxpayer to pay at least the minimum amount possible out of the income received. This includes a series of deductions that are not limited to standard deductions, personal exemptions, medical and dental expenses, charitable donations, qualified taxing interest, and casualty losses.

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3 years ago

Assume mark-up percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar

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Answer:

C. Total cost per unit times mark-up percentage per unit

Explanation:

The mark-up percentage is assumed to be computed by dividing the desired profit by the total cost.

The dollar amount of the mark-up per unit shall be computed by multiplying the total cost per unit with the markup percentage per unit.

The selling price of the product can be computed by adding the mark-up per unit to the cost price of each unit.

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3 years ago