1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jeka94
3 years ago
12

1. A stock has an expected return of 10.2 percent, the risk-free rate is 4.1 percent, and the market risk premium is 7.2 percent

. What must the beta of this stock be?
Business
1 answer:
NNADVOKAT [17]3 years ago
5 0

Answer:

Beta is  0.85  

Explanation:

The value of Beta can de derived from the CAPM formula of expected return

expected return=risk-free rate+Beta*market risk premium

expected return  is 10.2%

risk-free rate is 4.10%

market risk premium is 7.2%

Beta is unknown

10.20%=4.10%+Beta*7.20%

10.20%-4.10%=Beta*7.20%

6.10% ==Beta*7.20%

Beta=6.10% /7.20%

Beta= 0.85  

You might be interested in
which management employability skill involves being able to move beyond established ideas and rules to set up new models and pro
Ghella [55]

<u>Creativity</u> is a skill that involves being able to move beyond established ideas and rules to set up new models and processes

<h3>How to think creatively?</h3>

Finding novel approaches to issues and ways to deal with circumstances is the essence of creativity. This is a skill that people from all walks of life can benefit from learning; it is not just a talent reserved for artists, musicians, authors, or "right-brained" thinkers. These suggestions can be useful if you've ever sought to increase your creativity.

Developing your expertise in this field is one of the best strategies to foster creativity. Your ability to come up with original and creative solutions to issues will improve if you have a thorough understanding of the subject. Reading about and hearing from creative people is one approach to gain expertise.

Learn more about creativity

brainly.com/question/19171885

#SPJ4

5 0
1 year ago
Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash f
Nataliya [291]

Answer:

The net present value of this project is $1<u>3,587,962.96</u>

Explanation:

<em>The </em><em>Net present value (NPV)</em><em> is the difference between the present value of cash inflows and the present value of cash outflows  from a decision. A positive NPV indicates a profitable investment and a negative the opposite.</em>

<em>We can be work out the NPV of Turnbull Corp as follows</em>

                                                            Present Value

Year 1       13000,000× *(1.2^(-1)  = 10,833,333.3

Year 2     23,000,000 × 1.2^(-2) =   15,972,222.22

Year 3    29,000,000 ×  1.2^( -3) =   <u>16,782,407.41 </u>

Total PV of cash inflows                   43,587,963.0

Less the PV of cash outflow            <u>  (30,000,000)</u>

Net Present Value (NPV)                 <u>13,587,962.96</u>

       

The net present value of this project is $1<u>3,587,962.96</u>

8 0
3 years ago
Read 2 more answers
Based on the industry-low, industry-average, and industry-high values for the benchmarked data on p. 7 of the FIR, which one of
BARSIC [14]

Answer:

The Correct answer is "The Company’s cost of branded pair sold in the Asia-Pacific region was barely below the industry average".

Explanation:

At the point when the working benefits of the Company's Cost of branded pair sold in the Asia-Pacific district is below the normal of industry-high qualities, the organization's expense of branded pair sold in that area turns out to be subsequently a legitimate sign that there is positively Company's too high relative expense in atleast one components that it enjoys.

3 0
3 years ago
TopChop sells hairstyling franchises. TopChop receives $62,000 from a new franchisee for providing initial training, equipment,
Molodets [167]

Answer:

$65,332

Explanation:

The computation of revenue in 2021 is shown below:-

Revenue for the year 2021 = New franchisee received + Received by Top chop × (From July 1 to Aug 1 ÷ 2)

= $62,000 + $40,000 × 1 ÷ 2

= $62,000 + $40,000 × 0.5

= $62,000 + $20,000

= $82,000

Therefore, the revenue recognized for its arrangement is $82,000 and the new franchisee fee instantly recorded as an income

4 0
3 years ago
Suppose that today’s date is April 15. A bond with a 10% coupon paid semiannually every January 15 and July 15 is listed in The
Ray Of Light [21]

Answer:

1,011.429 dollars

Explanation:

The dealer is willing to sale bond (we purchase from the dealer) at the ask price

In this case 1,011.429 dollars per bond.

If anyone want's to purchase those bonds will have to pay this amount per bond.

The opposite to the ask price is the bid price, which is the price at which the dealer is willing to purchase bond (we sale it to the dealer).

3 0
3 years ago
Other questions:
  • Mayan Company had net income of $132,000. The weighted-average common shares outstanding were 80,000. The company has no preferr
    5·1 answer
  • The demand for a necessity whose cost is a small portion of one's total income is
    15·1 answer
  • At the beginning of the year, Klein Company's pension plan showed pension plan assets of $4 million and a PBO of $4.5 million; u
    15·1 answer
  • For the current month, buy n large's beginning inventory included 1,200 units costing $12 per unit. during the month, buy n larg
    6·1 answer
  • In December ,General Motors produced 7,200 customized vans at its plant in Detroit. The labor productivity at this plant is know
    12·1 answer
  • Oriental Corporation has gathered the following data on a proposed investment project:
    9·1 answer
  • Zola is very skilled with Microsoft and Apple, and she knows different methods of programming. This knowledge will help make Zol
    8·2 answers
  • If Q equals the units sold, P is the selling price per unit, V is the variable expense per unit, and F is the fixed expense, the
    14·1 answer
  • During the month of August, Ranson Productions applied overhead to jobs using an overhead rate of $0.60 per dollar of direct lab
    9·1 answer
  • As long as a public sector activity will generate benefits regardless of the costs, the activity should definitely be undertaken
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!