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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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Shahia Company bought a building for $89,000 cash and the land on which it was located for $107,000 cash. The company paid trans
kramer

Answer:

Explanation:

The net book value of the property(land and building) at the end of year 2

Building(89,000 + 7,000 + 16,000)            112,000  

Less; Depreciation for 2 years(10,200*2)  (20,400)          91,600

Land(107,000 + 3,000)                                                  110,000

Net book value of property                                        201,600

8 0
4 years ago
ints) During 2018, Falwell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstandin
Butoxors [25]

Answer: $4.34

Explanation:

The net income for diluted earnings per share will be calculated as:

Net income: $2,500,000

Less: preferred dividend: $300,000

= $2,200,000

To calculate the number of shares goes thus:

Total shares of stock options = 10,000 × 20 = 200,000 shares

Proceeds = 200,000 × $29

= $580,000

Shares of treasury stock will be:

= $580,000/$30

= 193,333 shares

Net shares added will be:

= 200000 - 193333

= 6667

Tge total shares for the diluted earnings per share will now be:

= 500,000 + 6667

= 506,667

The diluted earnings per share:

= $2,200,000/506667

= $4.34

8 0
4 years ago
Smith Company gives the following information on the financial statements: Net Income $50,000 Preferred Dividends 8,000 Average
ch4aika [34]

Answer: The rate of return on common stockholder’s equity is 23%.

Explanation:

Given that,

Net Income = $50,000

Preferred Dividends = 8,000

Average Common Stockholder’s Equity = 180,000

Average number of Common Shares Outstanding = 250,000 shares

Market Price = $2 per share

Therefore,

Return on equity = \frac{Net\ income - Preferred\ Dividends}{stockholder\ equity}

=  \frac{50000 - 8000}{180000}

= 23%

5 0
3 years ago
In a Bring Your Own Device (BYOD) policy, the user acceptance component may include separation of private data from business dat
docker41 [41]

Answer:

A. True

Explanation:

When saying data we can be referring to both private information of the owner of the Smartphone as well as information of the organization since the user uses the phone to connect to services provided by it, which refers to the name of BYOD. The “Bring Your Own Device” (BYOD) phenomenon is based on the modality in which members of an organization are authorized to use their own personal mobile devices (smartphones, tablets, notebooks, etc.) in the activities of the organization where they work connected to the organizational network. The use of their devices to perform their work tasks in the organization causes what was a personal device to become part of the organizational network, with the problems that this could lead to.

4 0
3 years ago
An A-B design does not demonstrate a functional relationship between the treatment and the target behavior because there is no:
balandron [24]

Answer: REPLICATION

Explanation:An A-B design is a single case or a single subject design that deals with the study and analysis of both applied Behavior and Behaviors which concerns Human and non Human subjects. This type of design does not involve repetition of treatments which means it is a one case scenario, A-B design is a two phase design made up of a baseline known as ("A" phase) without change and a ("B" phase) known as a treatment phase. If during the experiment their is a change,it means the it means the treatment has an effect.

5 0
3 years ago
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