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kotykmax [81]
3 years ago
5

A stock is expected to return 11% in a normal economy, 19% if the economy booms, and lose 8% if the economy moves into a recessi

onary period. Economists predict a 65% chance of a normal economy, a 25% chance of a boom, and a 10% chance of a recession. What is the expected return on the stock
Business
1 answer:
Serjik [45]3 years ago
7 0

Answer:

Expected return  = 50.4%

Explanation:

<em>The expected rate of return is the weighted average of all the possible returns associated with an investment decision. The returns are weighted using the probability associated with their outcomes.</em>

Expected return = WaRa + Wb+Rb + Wn+Rn

W- weight of the outcome, R - return of the outcome

E(R) = 11% ×0.65) + ( 19%× 0.25) + (-8%×0.1)

      = 50.4%

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Nash's trading post, llc issues 2000 shares of $10 par value common stock at $11 per share. when the transaction is recorded, cr
Natasha2012 [34]

Answer:

Credit common stock by 20,000

Credit additional paid in capital by 20,000

Explanation:

The par value of the share are $10 per share the number of shares are 2000 so initially we will credit common stock by (2000*10) = 20,000

Then we will credit the additional paid in capital by (11-10)*(2,000) =2000 as it is the additional money that we are getting on the par value.

4 0
3 years ago
lpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at t
kirza4 [7]

Answer:

13.86%

Explanation:

Calculation to determine the flotation-adjusted (net) cost of its new common stock

Using this formula

Cost of new common stock(re) = [d1 / stock price (1-flotation cost)] +g

Let plug in the formula

Cost of new common stock(re)= [$1.36 / 33.35 (1 – 0.065)]+0.094

Cost of new common stock(re)= [$1.36 / 33.35 (0.935)]+0.094

Cost of new common stock(re)= [$1.36/31.182)+0.094

Cost of new common stock(re)=0.04361+0.094

Cost of new common stock(re)=0.1376*100

Cost of new common stock(re)=13.76%

Therefore the flotation-adjusted (net) cost of its new common stock will be 13.76%

5 0
2 years ago
Select all that apply.
Semenov [28]

Answer:

Wildlife conservationists.

Explanation:

Wildlife conservationists are those people who do the practice of protecting wild species and their habitats to prevent species from going extinct. If anyone wants to make a career in Agriculture, Food & Natural Resources, he/she must have to know which species are endangered now and which species might be endangered in the future. Along with this, they must have to understand how those species could be saved from being extinct. After knowing all of these, he/she might select their career as a wildlife conservationist. Among the other three professions which are said in question aren't possible to choose from the side of a person who knows Agriculture, Food & Natural Resources.

7 0
3 years ago
Read 2 more answers
The amount businesses have left after paying their rent, interest on debt, and employee costs is called profits.
Levart [38]
False I’m pretty sure
7 0
3 years ago
The balance sheet below reflects Zee Bank after its purchase of $65 million in government securities from the Fed. Assume a requ
hjlf

Answer:

Option (C) is correct.

Explanation:

The money multiplier = 1 ÷ reserve ratio

                                    = 1 ÷ 0.1

                                    = 10

If a bank purchases $65 million of government securities from the Fed then this will reduce the money supply in the economy because the money from the bank is going.

The decrease in money supply:

= purchase amount × money multiplier

= 65 × 10

= 650 million

8 0
3 years ago
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