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FromTheMoon [43]
3 years ago
8

A stock has an average expected return of 10.8 percent for the next year. The beta of the stock is 1.22. The T-Bill rate is 5% a

nd the T-Bond rate is 3.4 %. What is the market risk premium
Business
1 answer:
uranmaximum [27]3 years ago
7 0

Answer: 4.7%

Explanation:

Expected return is calculated as:

= Risk free return + Beta ( Market risk premium)

10.8% = 5% + (1.22 × Market risk premium)

10.8% - 5% = 1.22market risk premium

5.8%/1.22 = market risk premium

Market risk premium = 0.058/1.22

Market risk premium = 0.047

Market risk premium = 4.7%

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Answer:

Rawls' Theory of Justice.

Explanation:

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7 0
3 years ago
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $82,000 and $4,500, r
Cerrena [4.2K]

Answer: $10,700

Explanation:

The Uncollectible Account Expense is the Accounting Adjustment made when a Receivable defaults on their debt and it can be calculated using the following formula,

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Now the balances are as follows,

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Calculating therefore,

= 6,800 + 8,400 - 4,500

= $10,700

Allegheny will report $10,700 as Uncollectible Accounts Expense for Year 2.

3 0
3 years ago
d needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. w
Phoenix [80]

The kind of policy is needed Level term.

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Life provides whole-life protection at a premium for 30 years. The advantage of this policy is that premiums can be carried forward for 30 years, making life insurance cheaper compared to other limited payment options. Single premium life insurance allows policyholders to make a lump sum payment instead of monthly, quarterly, or yearly payments.

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6 0
1 year ago
A----- is a plan in which an individual balances available resources and expenses.
Simora [160]

A<u> "budget"</u> is a plan in which an individual balances available resources and expenses.


Budgeting is the essential way that you can take control of your accounts. Basically, a budget is a composed arrangement for how you will spend your cash. You can make a month to month or a yearly spending plan. The budget enables you to settle on money related choices early, which makes it less demanding to cover every one of your costs consistently. Budgeting reliably can enable you to turn your accounts around and start to fabricate riches.

3 0
3 years ago
Read 2 more answers
Kirsten believes her company's overhead costs are driven (affected) by the number of direct labor hours because the production p
Vlad1618 [11]

Answer:

Predetermined manufacturing overhead rate= $10 per direct labor hour

Explanation:

Giving the following information:

Product A:

Direct labor hours= 1,600

Product B:

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<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 20,000/2,000

Predetermined manufacturing overhead rate= $10 per direct labor hour

5 0
3 years ago
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