Answer:
Topic Building
Explanation:
Sam is at this point trying to build his topic for the speech.
It is based on this topic a speech write up will be made.
Answer:
a. $13,000
b. $17,000
c. $27,000
Explanation:
a= Net income (loss) = Service revenue - Other operating expenses
Net income (loss) = $25,000 - $12,000
Net income (loss) = $13,000
b. Ending retained earnings = Beginning retained earnings + Net income - Dividends
Ending retained earnings = $5,000 + $13,000 - $1,000
Ending retained earnings = $17,000
c. Total assets = Cash + Accounts receivable + Supplies + Equipment
Total assets = $15,000 + $3,000 + $3,000 + $6,000
Total assets = $27,000
Answer:
1.763
Explanation:
Data provided in the question:
Beta of $40 million portfolio = 1
Risk-free rate = 4.25%
Market risk premium = 6.00%
Expected return = 13.00%
Now,
Expected return = Risk-free rate + ( Beta × Market risk premium )
13.00% = 4.25% + ( Beta × 6.00% )
or
Beta × 6.00% = 8.75%
or
Beta = 1.458
Now,
Beta of the total profile should be equal to 1.458
Thus,
Weight of $40 million portfolio = $40 million ÷ [ $40 million + $60 million]
= 0.4
Weight of $60 million portfolio = $60 million ÷ [ $40 million + $60 million]
= 0.6
therefore,
the average beta
1.458 = 0.4 × 1 + 0.6 × ( Beta of $60 million portfolio )
or
1.058 = 0.6 × ( Beta of $60 million portfolio )
or
Beta of $60 million portfolio = 1.763
