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ZanzabumX [31]
3 years ago
5

Mulherin's stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 2.30%. What is the required rate o

f return on the market? (Hint: First find the market risk premium.) Do not round your intermediate calculations. a. 9.98% b. 7.69% c. 8.19% d. 12.38% e. 10.58%
Business
1 answer:
koban [17]3 years ago
3 0

Answer:

a. 9.98%

Explanation:

The computation of required rate of return is shown below:-

Required return= Risk - Free rate + Beta × (Market rate- Risk-free rate)

11.75% = 2.30% + 1.23 × (Market rate - 2.3%)

(11.75% - 2.30%) ÷ 1.23 = Market rate - 2.3%

Market rate = (11.75% - 2.30%) ÷ 1.23 + 2.3%

=9.98%

Therefore for computing the required rate of return on the market we simply applied the above formula.

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Answer:

the day is good

Explanation:

im not dead i need a crown please

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Barney has a balance of $780 on a credit card with an APR of 31.3%, compounded monthly. About how much will he save in interest
BlackZzzverrR [31]

$119.66 is the answer for apex

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Mill Company began operations on January 1,2017, and recognized income from construction-type contracts under different methods
ANTONII [103]

Answer:

i. Deferred income taxes balance on  December 2019 is $192,500

ii. Deferred tax asset.

Explanation:

Year   Tax purpose   Book purpose   Difference   Deferred tax book

2017      $400,000          $0                $400,000        $140,000

2018      $625,000     $375,000         $250,000        $87,500

2019      $750,000     $850,000        ($100,000)        (<u>$35,000)</u>

Deferred tax asset balance on  December 2019 =   <u>$192,500</u>

<u><em>Working</em></u>

<u>Deferred tax book</u>

2017 = 400,000 * 35% =  $140,000

2018 = 250,000 * 35% = $87,500

2019 = (100,000) * 35% = ($35,000)

ii. Book income is less than tax income in 2017 and 2018. Deferred tax asset would be accounted. Book income is higher than tax income in 2019. Deferred tax asset would be reverse (i.e. deferred tax liability). Balance at the end of December 31, 2019 would be Deferred tax asset.

4 0
3 years ago
You are considering purchasing a new automobile that will cost you $28,000. The dealer offers you 4.9% APR financing for 60 mont
bija089 [108]

Answer:

so correct option is B) $527

Explanation:

given data

cost = $28,000

offer APR = 4.9 % = \frac{4.9}{12} = 0.0041

time = 60 months

finance the entire = $28,000

solution

we will apply here formula for calculate monthly payment  that is

= \frac{r(1+r)^t}{(1+r)^t -1}    ...........1

here r is rate that is 0.0041 and t is time that is 60 put here value we get

=  \frac{0.0041(1+0.0041)^{60}}{(1+0.0041)^{60} -1}

= 0.01883

so monthly payment is = 28000 × 0.01883

monthly payment is $527

so correct option is B) $527

6 0
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What is the simple interest of a loan for $1,000 with 5 percent interest after 3 years?
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Simple interest produces interest only over the initial amount.

So every year the interest will be $1000 * 5 / 100 = $50.

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So, the answer is $150, which is the result of $50 times 3.
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