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lukranit [14]
3 years ago
12

A stock has an expected return of 16 percent, the risk-free rate is 6.4 percent, and the market risk premium is 7.3 percent.Requ

ired:What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).) Beta
Business
1 answer:
FrozenT [24]3 years ago
4 0

Answer:

The beta of the stock must be = 1.315 (approx).

Explanation:

Considering the following formula, we get:

expected return = 16

Risk free rate = 6.4

Market risk premium = 7.3

expected return=risk-free rate+beta* market risk premium

hence

16 = 6.4 + beta * 7.3

hence beta=(16 - 6.4)/7.3  =1.315(approx).

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Depreciation Expense on the Heating and Air Conditioning Equipment for the factory of $50,000 is allocated to five departments.
disa [49]

Answer: $7,500

Explanation:

Cost allocation base is Cubic feet which is 100,000 ft³.

Department A has 15,000 ft³ of the 100,000 ft³.

Depreciation is $50,000

Depreciation for Department A is therefore;

= (15,000/100,000) * 50,000

= $7,500

5 0
2 years ago
Ann is trying to decide which one of two job offers she will accept. Several items are presented below: Job Offer A(1)Base Salar
andrew-mc [135]

Answer:

1)Base Salary $50,000

(3)Moving allowance $3,000

(5)Job search costs incurred $300 Job Offer

Explanation:

In this scenario, the person who is trying to decide for a job change will look at various things that can improve their future to the greatest extent.

Like: Medical allowances, paid leaves, overtime wages, bonuses, and incentives, etc.  

Many factors are there to join a new company.  

Based on the situation, the overtime compensation, and the signing bonus are the reasons to accept the job offer.

And, the remaining reasons like - basic salary, moving allowance are the service which is the same for most of the companies. The job search cost is a sunk cost that is not recovered.  

Hence, these costs will not be considered.

5 0
2 years ago
If the beginning balance of the Accumulated Depreciation—Equipment account is $10,000 and an adjusting journal entry is recorded
blondinia [14]

Answer:

$12500

Explanation:

Since the beginning balance of accumulated depreciation - equipment is $10 000

And an adjusting journal entry during the year was $2500

You must add the adjusting journal entry to the begging balance to get the closing balance of Accumulated Depreciation - equipment:

10000+2500=$12500

5 0
2 years ago
Which of the following would lead to an increase in the demand for golf balls?
dangina [55]

Answer:

Option C, An decrease in the price of golf balls, is the right answer.

Explanation:

Option “C” is correct because as per the law of demand, the price of a commodity and its demand are inversely related to each other. If the price increases, then the demand for the commodity falls. If the price of the commodity falls, then the demand increases. Similarly, in the case of golf balls, when its price decreases then this decrease in price will result in an increase in demand for golf balls.

3 0
3 years ago
The upper management of a large national retail grocery store has passed along the new goals of improving customer service to th
valentina_108 [34]

Answer:

The correct answer will be "Tactical planning".

Explanation:

  • Tactical scheduling or planning seems to be an essential factor of commercial enterprise which differs significantly from traditional forms of effective decision-making. The phase of tactical preparation occurs in real-time, following the short-term results.
  • With nothing more than a tactical approach in place, the company will make fast strategies to excel inside that chosen field of work.

So the above seems to be the correct answer.

3 0
2 years ago
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