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Feliz [49]
3 years ago
15

Brodkey Shoes has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market d

uring the past 3 years was 15.00%, but investors expect the annual future stock market return to be 13.00%. Based on the SML, what is the firm's required return?a. 13.51%b. 13.86%c. 14.21%d. 14.58%e. 14.95%
Business
1 answer:
Sindrei [870]3 years ago
8 0

Answer:

e. 14.95%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below  

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

= 6.5% + 1.30 × (13% - 6.5%)

= 6.5% + 1.30 × 6.5%

= 6.5% + 8.45%

= 14.95%

All other information which is given is not relevant. Hence, ignored it

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Scenario
alekssr [168]

Answer:

Create a guide that security personnel will use that includes procedures for implementing an access control change.

Explanation:

The procedure guide must contain the steps Always Fresh security personnel should take to evaluate and

implement an access control change. You can assume any change requests you receive are approved.

Ensure that your procedures include the following:

▪ Status or setting prior to any change

▪ Reason for the change

▪ Change to implement

▪ Scope of the change

▪ Impact of the change

▪ Status or setting after the change

▪ Process to evaluate the change

Required Resources

▪ Internet access

▪ Course textbook

Submission Requirements

▪ Format: Microsoft Word (or compatible)

▪ Font: Arial, size 12, double-space

▪ Citation Style: Follow your school’s preferred style guide

Self-Assessment Checklist

▪ I created a procedure guide that provides clear instructions that anyone with a basic technical

knowledge base can follow.

▪ I created a well-developed and formatted procedure guide with proper grammar, spelling, and

punctuation.

▪ I followed the submission guidelines.

7 0
2 years ago
The market for factors of production connects spending by firms to household income.
Semmy [17]

The given statement " The market for factors of production connects spending by firms to household income " is TRUE

Explanation:

When goods and services markets were the only businesses open, corporations would ultimately have everything they wanted in a single business, consumers would have all the finished products and industry would end.

The word "factors of production" refers to everything a manufacturer uses to make a final product.

Types of production factors are labour (work was carried out by people), equipment (machinery for the processing of products), land and so on.

Job markets are the most widely contested type of a factor market, but it should be noted that output factors can take many forms.

5 0
3 years ago
On March 15, a fire destroyed Oriole Company's entire retail inventory. The inventory on hand as of January 1 totaled $6900000.
Nitella [24]

Answer:

approximately $6,676,000

Explanation:

the value of the inventory that was destroyed by fire = beginning balance on January 1 + purchases made before the fire + freight costs - cost of goods sold

inventory destroyed by fire = $6,900,000 + $3,032,000 + $342,000 - ($5,140,000 x 70%) = $10,274,000 - $3,598,000 = $6,676,000

6 0
3 years ago
The union and management agreement that allows non-union people to be hired but requires that they join the union after a probat
lisov135 [29]

Hello !

Answer:

The union and management agreement that allows non-union people to be hired but requires that they join the union after a probationary period creates the <u>union</u> shop.

6 0
2 years ago
Read 2 more answers
Allegheny Company ended 2015 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $23,000 and $900, respe
solniwko [45]

Answer:

Allegheny should report as $2,200 as Uncollectible Accounts Expense on its 2016 income statement.

Explanation:

Allegheny determines its bad debt expense by aging its receivables.

The write-off during 2016 would have this effect:

Debit Allowance for doubtful accounts                    $1,500

Credit Accounts receivable                                       $1,500

<em>(To record write-off during 2016)</em>

The balance in the allowance for doubtful accounts would be $900 - $1,500 = $600 Debit

To reinstate the Allowance account to the estimated amount of $1,600, we need to add back the debit balance to arrive at $1,600 + $600 = $2,200.

The net realizable value of the Accounts receivable becomes: $23,000 - $1,500 - $1,600 = $19,900

6 0
2 years ago
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