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Vesnalui [34]
3 years ago
12

The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a. Calculate the required rate of retur

n on a security with a beta of 1.25. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Required return 22.25 % b. If the security is expected to return 16%, is it overpriced or underpriced
Business
1 answer:
Andreyy893 years ago
3 0

Answer:

a. 14.75%

b. Under priced

Explanation:

The computation for the required rate of return is shown below:

a. Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 6% + 1.25 × (13% - 6%)

= 6% + 1.25 × 7%

= 6% + 8.75%

= 14.75%

b. As the required rate of return comes 14.75% and the required return is 16% so it is under priced as expected return is more than the required return

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Lucinda is a self-employed veterinarian in 2019. Her Schedule C net earnings are $86,000 for the year. Calculate the total amoun
trapecia [35]

Answer:

$79,421

$12,151.413

Step by Step Explanation:

The self-employment taxable income is 92.35% of net earnings. While the tax rate for self-employment tax liability is 15.3% for year 2019

Schedule C net earnings: $86,000

Self-employment taxable income rate: 92.35%

Self-employment taxable income= 92.35%×86,000

=$79,421

Self-employment taxable income: $79,421

Self-employment tax rate: 15.3%

self-employment tax liability=

Self-employment taxable income×Self-employment tax rate

$79,421×15.3% =$ 12,151.413

5 0
3 years ago
Which of the following scenarios would result in a decrease in the wage rate of solar panel installers and a decrease in the qua
Digiron [165]

Answer:

Wages of solar panel installers increase in another town and attract workers away from Billy's town.

Explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

7 0
2 years ago
Part II: Article II, Section I of the U.S. Constitution provides that the president must "take care that the laws be faithfully
xz_007 [3.2K]

Answer: Yes it is.

Explanation:

The Constitution puts the President at the head of the Executive branch of government and provides that the President should ensure that the laws of the land are faithfully executed.

Seeing as executive orders are issued to members of the executive - which are under the President - and are done to ensure that the laws of the land are carried out, the President is not only following the Constitution's directives in  Article II, Section I of the Constitution but doing it within their power as head of the executive.

Executive orders are therefore an implied constitutional power that the President has.

4 0
2 years ago
On July 1, 2020, Indigo Co. pays $9,400 to Sweet Insurance Co. for a 2-year insurance policy. Both companies have fiscal years e
aliya0001 [1]

Answer:

Explanation:

The journal entries are shown below:

On July 1

Prepaid insurance A/c Dr $9,400

    To Cash A/c $9,400

(Being the prepaid insurance for cash is recorded)

On December 31

Insurance expense A/c Dr $2,350

         To Prepaid insurance A/c $2,350

(Being the insurance expense is recorded)

The computation is shown below:

= Prepaid insurance amount ÷ number of years × number of months ÷ total number of months in a year

= $9,400 ÷ 2 years × 6 months ÷ 12 months

= $2,350

6 0
3 years ago
In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immed
beks73 [17]

Answer:

<u><em>Direct marketing.</em></u>

Explanation:

Direct marketing works as a set of strategies whose objective is to promote the promotion of a company's products and services through direct contact with its potential audience.

It is a user-friendly strategy that translates into positive results for maintaining business / consumer interactions, creating brand satisfaction and value. Some examples of direct marketing are: telemarketing, telesales, direct mail, email marketing and others.

In order to be an effective strategy the company must select the target audience according to their needs, identify which approach will be most compatible with the internal strategy of the organization and identify marketing tools that translate the organizational values ​​and objectives.

4 0
3 years ago
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