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guajiro [1.7K]
3 years ago
15

A stock with a beta of 0.8 has an expected rate of return of 12%. If the market return this year turns out to be 5 percentage po

ints below expectations, what is your best guess as to the rate of return on the stock?
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
8 0

Answer:

The correct answer is:  The expected rate of return for the stock would be around 7%.

Explanation:

The Beta coefficient is a numeral measure that portraits the volatility of a stock compared to the overall market performance. If a stock's beta is closed to the numerical value one (1) it implies it is highly correlated to the price movement of the overall market.

In that case, if a stock's beta is 0.8 it implies it follows the market price movements. If the stock expected rate return is 12% but the market return turns out to be 5% points below expectations, it means the stock's return would end up being around 7%.

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Grady received $8,200 of Social Security benefits this year. Grady also reported salary and interest income this year.What amoun
Alexus [3.1K]

Solution:

a. [$0]

Grady eliminates a limit of $8,200, because the value of his adjusted AGI plus 50 percent of his social security compensation ($12,100 + $250 + $4,100= $16,450), falls below the required level, including social security benefits, of ($25,000 or less for single taxpayers).

b. [$850]

Grady is single with his adjusted AGI plus 50% of his social security income is 25,000 dollars to up to 34,000 dollars (600 dollars with 50% of Social Security benefits). Its social security payments are less than (a) 50 percent ($8,200 or 50 percent= $4,100) or (b) 50 percent ($22,600 adjusted AGI+ $4,100 + − $25,000)= $850), respectively. His social security benefits are therefore taxable at $850.

c. [$6,970]

Grady provides 85% or 6,970 dollars in compensation ($8,200 to 85%), as the adjusted AGI is just over the limit of social security payments ($44,000 for a married joint).

d. [$6,970]

Married reports for its revised AGI plus 50 percent of its social security benefits ($44,000 + $700 + $4,100= $48,800) are over 44,000 dollars. Its taxable benefit in the social security program is less than (a) 85% of the benefits provided for in the social security system (85%= $8970), or (b) 85% of [$44700 adjusted AGI+ $4100 (50% of benefits provided for in the social security system) − $44000] − $4900), plus less than (1) $6000 (2), or (4,100) 50%. This renders it cheaper for less than $6,970 ($4,080 plus $4,100). His net profits are now $6,970.

e. [$6,970]

Grady had been married separately, so thus the taxable social security gain of Grady's data is less than (a) 85% (85%= $8,200); so (b) 85% (85%) of the AGI adjusted by the employer plus 50% (85%) of the social securityprofit(22,000 $+ 600 + 4,100 $(50%)= 22,695). His net profits are now $6,970.

7 0
3 years ago
Top Shelf Company builds oak bookcases. Determine whether each of the following is a direct material (DM), direct labor (DL), ma
Veronika [31]

Answer:

(1) Depreciation on factory equipment. ____MOH

(2) Depreciation on delivery trucks. ____ Period Cost

(3) Wood used to build a bookcase. ____Direct Material

(4) Production supervisor’s salary. ____ MOH

(5) Glue and screws used in the bookcases. ____ MOH

(6) Wages of persons who assemble the bookcases. ____Direct Labor

(7) Cost to run an ad on local radio stations. ____Period Cost

(8) Rent for the factory. ____ MOH

(9) CEO’s salary. ____ Period Cost

(10) Wages of person who sands the wood after it is cut. Direct Labor

Period Cost are costs that are not directly involved in the manufacturing costs of a product but are incurred in a particular  period. These expenses include advertising and selling expenses.

Direct Materials are material used to make a product . For example wood is a direct material for making shelves.

Direct Labor are the wages paid to the people who work in the production of a product.

Manufacturing Overheads are charges associated with the manufacturing of a product.they are indirect costs of the production like rent of the building etc.

 

4 0
3 years ago
At which stage of new product planning does the management select the marketing campaign, identify regions to cover, and decide
denpristay [2]
The answer for your question is B
8 0
2 years ago
Read 2 more answers
At January 1, 2018, Transit Developments owed First City Bank Group $600,000, under an 11% note with three years remaining to ma
VashaNatasha [74]

Answer:

interest payable   66,000

note payable      384,000

       Land                            325,000

       Gain on disposal         125,000

Explanation:

600,000 x 11% = 66,000 interest payable

the land is being used to settle the note along with the accrued interest at the time:

the accounting  of Transit developments record the land at cost: 325,000

as the market valuye is 450,000 so a gain for 125,000 will be recognize.

450,000 market value - 66,000 interest payable: 384,000 payment on the note principal

the entry will write-off the interest payable, decrease the note by that amount and recognize the land gain on disposal

4 0
3 years ago
A new car has a sticker price of $20,950, while the invoice price paid was $18,750. What is the dealer markup?
Greeley [361]
20,950 minus 18750 is 2200 so im guessing the markup is $2200
7 0
2 years ago
Read 2 more answers
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