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Georgia [21]
3 years ago
11

A stock has an expected return of 15.0 percent, its beta is 0.90, and the risk-free rate is 5.3 percent. What must the expected

return on the market be
Business
1 answer:
SSSSS [86.1K]3 years ago
3 0

Answer:

16.07%

Explanation:

The computation of the expected return on the market is shown below

As we know that

Expected Return on stock = Risk free return + beta ( Expected Market Rate of Return - Risk free return )

15 % = 5.3% + 0.90 × (Expected Market Rate of Return - 5.3%)

15 % - 5.3% ÷ 0.90 = Expected Market Rate of Return - 5.3%

10.77% = Expected Market Rate of Return - 5.3 %

So, expected market rate of return is

= 10.77 + 5.3%

= 16.07%

We simply applied the above formula                                                      

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Mervon Company has two operating departments: Mixing and Bottling. Mixing has 350 employees and Bottling has 350 employees. Indi
krok68 [10]

Answer:

Allocated administrative cost for mixing is $81000

And allocated administrative cost for for bottling is $81000

Explanation:

We have given total number of employs for mixing = 350

And total number of employs for bottling = 350

Administrative cost = $162000

So total number of employs = 350+350 = 700

So allocation base for mixing =\frac{350}{700}=0.5

So allocated amount for mixing = 0.5×$162000 = $81000

Allocation base for bottling = =\frac{350}{700}=0.5

So allocated amount for bottling = 0.5×$162000 = $81000

3 0
3 years ago
Sherriane Baby Products’ salaries expense was $15.1 million. Required: What is the amount of cash Sherriane paid to employees du
beks73 [17]

Answer:

Summary entry is shown below

Explanation:

The preparation of the summary entry is shown below

Salary expense $15.1 million

     To Cash $9.4 million

     To Salary payable $5.7 million

(Being the salary expense is recorded)

Simply we debited the salary expense by $15.1 million as the expenses account is debited while on the other hand, the cash is paid for $9.4 million and the salary payable is credited for $5.7 million

6 0
3 years ago
Based on his​ preferences, Bill is willing to trade 4 movie tickets for 1 ticket to a basketball game. If movie tickets cost $8
nexus9112 [7]

Answer:

The correct option is option e)

not trade movie tickets for basketball tickets because his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.

Explanation:

The cost of one movie ticket is $8 then Bills' four tickets will be $32.

The cost of a basketball ticket is $28.

Therefore if bill should trade 4 movie tickets for a basketball ticket he will make a loss of $ 4 so it is advisable for bill not to trade movie ticket for basketball ticket. And again his marginal utility per dollar spent on movie tickets is greater than his marginal utility per dollar spent on basketball tickets.

6 0
3 years ago
Which of the following is a disadvantage of the sole proprietorship form of ownership?
viktelen [127]
D. Unlimited liability
6 0
3 years ago
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Janice, a co-founder of a startup firm that provides financial services, is responsible for making the standard operating proced
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A. organizing is the answer I picked
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