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marusya05 [52]
3 years ago
14

Suppose Binder corporatio's common stock has a return of 17.61 percent. The risk-free rate is 3.68 percent, the market return is

12.4 percent and there is no unsystematic risk affecting Binder's return. Given the one-factor arbitrage pricing model, what is the factor beta
Business
1 answer:
katrin2010 [14]3 years ago
4 0

Answer:

1.597

Explanation:

The computation of the factor beta using the one-factor arbitrage pricing model is shown below:

As we know that

= (Expected rate of return - risk-free rate of return) ÷ (market rate of return-risk-free rate of return)

= (17.61% - 3.68%) ÷ (12.4% - 3.68%)

= 1.597

We simply applied the above formula to determine the factor beta and the same is to be considered

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2 years ago
Andover Systems has a standard variable overhead rate of $5.60 per machine hour, and each unit produced has a standard time allo
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Andover's variable-overhead efficiency variance is $-42,000 Unfavourable

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According to the given data we have the following:

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On January 1, 2021, Clear Water Airlines leased a jumbo jet from Unilever Corporation. The terms of the lease require Clear Wate
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Answer:

It will be recorded at 13,085,320.86

Explanation:

We will calculate the present value of an annuity-due of 20 years to know the lease liability

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at year-end interest will be recognize and icnrease the liability accouny

on january first will decrease the liaiblity by the 1,000,000 payment.

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4 years ago
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