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Colt1911 [192]
4 years ago
9

Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. suppose also that the expected re

turn required by the market for a portfolio with a beta of 1 is 6.0%. according to the capital asset pricing model:
a. what is the expected return on the market portfolio? (round your answer to 1 decimal place.) expected rate of return %
b. what would be the expected return on a zero-beta stock? expected rate of return % suppose you consider buying a share of stock at a price of $55. the stock is expected to pay a dividend of $6 next year and to sell then for $57. the stock risk has been evaluated at β = –0.5. c-1. using the sml, calculate the fair rate of return for a stock with a β = –0.5. (round your answer to 1 decimal place.) fair rate of return % c-2. calculate the expected rate of return, using the expected price and dividend for next year. (round your answer to 2 decimal places.) expected rate of return % c-3. is the stock overpriced or underpriced? underpriced overpriced
Business
1 answer:
Allisa [31]4 years ago
4 0

a. what is the expected return on the market portfolio? (round your answer to 1 decimal place.) expected rate of return %

b. what would be the expected return on a zero-beta stock? expected rate of return % suppose you consider buying a share of stock at a price of $55. the stock is expected to pay a dividend of $6 next year and to sell then for $57. the stock risk has been evaluated at β = –0.5. c-1. using the sml, calculate the fair rate of return for a stock with a β = –0.5. (round your answer to 1 decimal place.) fair rate of return % c-2. calculate the expected rate of return, using the expected price and dividend for next year. (round your answer to 2 dec

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When interest rates are low, some automobile dealers offer loans at 0% APR, as indicated in a 2016 advertisement by a prominent
Dovator [93]

Answer:

Monthly payment= $1,041.67

Explanation:

Giving the following information:

Suppose you are buying a new truck at a price of $25,000. You plan to finance your purchase with a loan you will repay over two years. The dealer offers two options: either dealer financing with 0% interest, or a $2,500 rebate on the purchase price. If you take the rebate, you will have to go to the local bank for a loan (of $22,500) at an APR of 6.5%.

Monthly payment= 25,000/24months= $1,041.67

4 0
3 years ago
How can conflicts between the interests of stakeholders be resolved by a corporation's management?
Furkat [3]
<span>A corporation is really a macrocosm of a family. The parents must look at themselves and each child to determine how money and time is spent. Often families sit together and discuss issues to come up with a resolution that each family member agrees to. The kids get to give their ideas too. A corporation really just needs to look at themselves as a huge family. The first thing management needs to do is determine the wants and desires of each group of stakeholders. This can be done in forums, surveys or small group meetings. This gives management a better picture of what is wanted as well as giving voice to stakeholders; some of whom would otherwise feel marginalized. The next task would be to put together a small team representing each of the stakeholder groups as well as representatives of corporate management. They would be presented with the results of the forum/survey/meetings. A third party facilitator should be present and guide the team in discussing each stakeholder interest. The initial meeting(s) would be information gathering and a chance to see issues from each stakeholder group's perspective. Subsequent meetings would then discuss and brainstorm ideas to reach compromises that benefit each group. Remember that a compromise is a win win scenario in which all parties give a little to get a little. Most decisions and agreements in life are not black and white, but shades of gray. Each group of stakeholders must be willing to step into the gray zone and not expect everything they desire. The idea of including stakeholders in the decision making process makes each group feel they are being heard. It also improves the chances of success in actions decided because of mutual buy-in by all stakeholder groups. This is why families use this approach especially in dealing with family rules. After a reasonable amount of time, which will depend upon the issue, the situation should be analysed to see if tweaks need to be done. The team could meet again or another team selected to see what new ideas could be generate.</span>
4 0
3 years ago
What is an ex post facto law
frutty [35]
A law that makes illegal an act that was legal when committed, hope this helps.
5 0
4 years ago
Read 2 more answers
Land was acquired in 2021 for a future building site at a cost of $40,800. The assessed valuation for tax purposes is $27,900, a
Murrr4er [49]

Answer:

The land should be reported in the financial statement at $40,800

Explanation:

At the time the fixed asset is being recorded, it should be recorded at the purchase cost or historical price.

Since the land was purchased at $40,800 according to the question, also it is assessed for tax purpose at $27,900 and was valued at $48,900 by other appraisers including an offer of cash payment of $44,200.

But at the time of recording, the balance sheet would show at the price of $40,800

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3 years ago
How much does a social worker make an hour?
Degger [83]
A social worker makes $21.35 a hour.
HOPE THIS HELPS YOU! ^_^
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