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belka [17]
3 years ago
14

Westsyde Tool Company is expected to pay a dividend of $1.50 in the upcoming year. The risk-free rate of return is 6% and the ex

pected return on the market portfolio is 14%. Analysts expect the price of Westsyde Tool Company shares to be $29 a year from now. The beta of Westsyde Tool Company's stock is 1.20. Using the CAPM, an appropriate required return on Westsyde Tool Company's stock is _________.
Business
1 answer:
tresset_1 [31]3 years ago
6 0

Answer:

ER(S) = Rf + β(Rm - Rf)

ER(S) = 6 + 1.20(14 - 6)

ER(S) = 6 + 9.6

ER(S) = 15.6%

Explanation:

The expected return on a stock is a function of risk-free rate plus the product of beta and risk-premium.

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Samantha, who is single and has MAGI of $36,000, recently was employed by an accounting firm. During the year, she spends $1,650
jek_recluse [69]

Answer:

a) $0

b) $4,000

Explanation:

a)

No deduction will be allowed to samantha for the amount spent on CPA exam review course.

So, Samantha can deduct $0.

b)

Under section 222 of IRS Code, maximum amount of deduction allowed to tax payer (whose adjusted gross income is less than $65,000) on account of tuition fees and other education expenses is $4,000.

So, Samantha can deduct $4,000.

Hope this helps!

7 0
3 years ago
If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem
nexus9112 [7]

Answer:

"Capital rationing" would be the appropriate answer.

Explanation:

  • Capital rationing is a systematic process for allocating remaining cash through various alternative investments, thus growing the bottom line of a financial institution.
  • It consists of calculating profitability economic indicators across all projects as well as choosing the best ventures which result in the highest present value especially when associated.

8 0
3 years ago
Why is it difficult for the federal government to increase or decrease spending
vovangra [49]

Answer:

here you go bruv

Explanation:

The New York Times published a chart today that succinctly explains why it is so hard to cut the federal government's spending: the programs that people want to cut don't cost very much, and the programs that cost a lot people don't want to cut.

5 0
3 years ago
Fundamentals of Supply are view for the point of the
ivanzaharov [21]

Answer:

Supply side is the view point of the Firms or the Businesses.

Explanation:

As the law of demand deals with the consumers side, the law of supply deals with the suppliers or the firms/businesses.

this tries to explain the factors that affect the supply, such as the prices of the substitutes and complements, the price of a commodity itself, taxes, government subsidies, technological influences, etc...

in this question, the 1st option, consumer is wrong. However, in certain situations, Government can be acted as a "supplier" (if there is a government monopoly on the supply of a good or a service", and government is a heavy influencer of supply through the implementaion of taxes and subsidies!  

5 0
3 years ago
Anna has worked for the Nutty Boys Nut Butter Company for several years now and was recently recognized as one of the company's
sammy [17]
A


Social media


Social media is so fun you can talk to who ever one to talk to
7 0
3 years ago
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