The groups that review research proposals for possible ethical violations are known as:

The Security Market Line (SML) shows the relationship between stocks' required rates of return (measured on the vertical axis) a

natka813 [3]

Answer:

True

Explanation:

The reason is that the straight line equation is used to illustrate the relation between the rate of return and the beta factor and is given as under:

Y = a + bX

Here

a = Rf

B = Risk premium = Rm - Rf

X = Beta Factor

So this means the security market line is the graphical presentation of capital asset pricing model and illustrates why the increase in beta factor increases the required rate of return, the reason is that the the overall required return Y of the investment will start increasing with the increase in the beta factor.

So the statement is true.

5 0

3 years ago

Suppose that you just purchased 150 shares of XYZ stock for $60 per share. a. If the initial margin requirement is 71.00%, how m

Kisachek [45]

Answer:

$2,610

Explanation:

Calculation for how much money you must borrow.

Using this formula

Amount to be borrowed =( Purchased shares* Per share price*(Initial margin requirement percentage)

Let plug in the formula

Amount to be borrowed= 150 shares*$60 per shares *(1-0.71)

Amount to be borrowed=$9,000*(0.29)

Amount to be borrowed=$2,610

Therefore how much money you must borrow will be $2,610

5 0

3 years ago

Management accounting primarily is concerned with providing:A) information to managers inside the organization as well as inform

Inga [223]

Answer:

The correct answer is C: information to managers inside the organization

Explanation:

Management accounting is a part of accounting that regards the identification, measurement, analysis, and interpretation of accounting information to help managers in the decision-making process to efficiently manage a company’s operations. On the contrary of financial accounting, which is primarily concentrated on the correct organization and reporting of the company’s financial transactions to outsiders (e.g., investors, lenders), managerial accounting is focused on internal decision-making.

5 0

3 years ago

eastern hotel corp. pays a constant $7.80 dividend on its stock. the company will maintain this dividend for the next 13 years a

Lesechka [4]

The stock is now trading at $52.16 per share.

The current value of an annuity of n regular payments of P at r% with yearly payments is provided by:

PV = P × (1 -( $(1 + r) ^{-n}$ ÷r))

Estes Park Corp. distributes a fixed rate of a dividend of P = $7.80 per share on its shares. The corporation will retain this dividend for the following n = 13 years before ceasing dividend payments permanently. If the necessary returns on this stock are not metis r = 11.2% = 0.112.

The actual share price is calculated as follows:

Current share price = $7.80 × (1 -( $(1 + 0.112) ^{-13}$ ÷0.112))

$7.80 × ((1 - 0.251) ÷ 0.112)

$52.16

Therefore, the current share price is $52.16