Answer:
$7073.68
Explanation:
Data provided in the question:
Worth of portfolio = $15,000
Amount invested in stock A = $6,000
Beta of stock A = 1.63
Beta of stock B = 0.95
Beta of portfolio = 1.10
Now,
Beta portfolio = ∑(Weight × Beta)
let the amount invested in Stock B be 'x'
thus,
1.10 = [($6,000 ÷ $15,000 ) × 1.63] + [( x ÷ $15,000 ) × 0.95 ]
or
1.10 = 0.652 + [( x ÷ $15,000 ) × 0.95 ]
or
0.448 = [( x ÷ $15,000 ) × 0.95 ]
or
x = ( 0.448 × $15,000 ) ÷ 0.95
or
x = $7073.68
Answer:
Entry: 1. Dr bad debts expense 5500
Cr Allowance for uncollectible accounts 5500
Explanation:
1.Account receivable = $44000
Allowance for uncollectible accounts(Dec,31 2021) = $1100
44000* 15% = 6600 - 1100 = $5500 Allowance for uncollectible accounts
2. Bad debts expense = (44000* 15%) = 6600
3. Uncollecible accounts = (Open) Allowance for bad debts + Current year Allowance.
= 1100 + 6600 = $7700.
4. 44000 - 7700 = $36300 net account receiable
Answer:
Gathering publicly available comparable company information
Creating detailed forecasts for both companies
An accretion/dilution and sensitivity analysis
Determining and calculating items related to the acquisition structure
Answer:
$27.2
Explanation:
First we have to calculate the total estimated manufacturing overheads which shall be determined as follows:
Estimated total manufacturing overheads=Variable manufacturing overhead+ Fixed manufacturing overheads
Variable manufacturing overhead=Estimated labour hours*manufacturing overhead per labour hour
=75,000*$10.70=$802,500
Fixed manufacturing overheads=$1,237,500
Estimated total manufacturing overheads=$802,50+$1,237,500
=$2,040,000
Now we will compute the predetermined overhead rate which shall be determined using the following formula:
Predetermined overhead rate=Estimated total manufacturing overheads/Estimated labour hours
Predetermined overhead rate=$2,040,000/75,000=$27.2
Answer:
1.22%
Explanation:
The modified duration of the bond gives an indication of change in price due to a 1% change in the yield to maturity,hence, the bond modified duration is computed using the formula below:
modified duration=Macaulay Duration/(1+YTM)
Macaulay Duration=4.2
YTM(initial)=3%
modified duration=4.2/(1+3%)= 4.08
That for 1% change in yield to maturity price would change 4.08%
0.3% change in yield(3.3%-3%)= 4.08%*0.3%=1.22%