Answer:
Proportion y = 80%
Explanation:
E(rc) - r(f) = y[E(rp) - r(f)]. Where E(rc) - r(f) is Risk premium of clients overall portfolio and y[E(rp) - r(f)] is Risk premium of clients risky portfolio
0.15 - 0.07 = y[0.17 - 0.07]
0.08 = y(0.10)
y = 0.08/0.10
y = 0.80
y = 80%
So, the proportion of risky portfolio(y) is 80%. So, to achieve overall return of 15% on portfolio, investors needs to invest 80% investment in risky portfolio.
Answer:
Particulars Amount
Salary $40,000
Interest expenses <u>$8,000</u>
AGI $48,000
Less:
Itemized deduction ($60,000)
<em>Personal exemption (</em><em><u>$3,950)</u></em>
Taxable Income <u>($15,950)</u>
Taxable Income ($15,950)
Personal exemption (<u>$3,950)</u>
Net Operating Loss <u>$12,000</u>
Note: Interest on New York state bonds of $12,000 is an exemption
Lexi Company forecasts unit sales of 1,640,000 in April, 1,250,000 in May, 810,000 in June, and 1,650,000 in July. Beginning inv
mario62 [17]
Answer:
Explanation:
From the information given in the question:
The main objective is to Prepare a merchandise purchases budget for the months of April, May, and June
Merchandise Purchases Budget
April May June
Next months' budgeted 1250000 810000 1650000
Sales
Ratio of inventory 30% 30% 30%
Desired ending inventory 375000 243000 495000
Sales unit 1640000 1250000 810000
Required units of
available inventory 2015000 1493000 1305000
Less:Beginning Inventory -250000 - 375000 - 243000
Units to be purchased 1765000 1118000 1062000
N:B
Desired ending inventory = Next months' budgeted sales × Ratio of inventory
Required units of available inventory = Desired ending inventory + Sales unit
Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. Under "current liabilities"section of balance sheet this account will be recorded as "account payable".
Answer: Option (B) is correct
<u>Explanation:</u>
Raw material purchased on credit from a vendor is a liability and it is shown under current liabilities in "accounts payable". Since raw material purchased on credit and payment is to be made after two months.
Payment due gives rise to liability. Now current liability is a company's short term obligations that are to be paid back within a year. Here the firm will have to make payment within two months to the vendor.
Answer: -9
Explanation:
The Tax multiplier of a nation shows how much the aggregate demand of an economy will change if there is a change in taxes.
It is calculated by the formula:
= -MPC / ( 1 - MPC)
= -0.9 / (1 - 0.9)
= -9
<em>If taxes are reduced, aggregate demand would increase by 9 times. </em>
