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Firlakuza [10]
3 years ago
7

"The risk‐free interest rate on one‐year debt is 7 percent and the return on the market is expected to be 13 percent. A stock wi

th a beta of 1.2 pays no dividends over the next year. If it is currently priced at $15.00, what will its price be at the end of the year?"
Business
1 answer:
galina1969 [7]3 years ago
6 0

Answer:

Price be at the end of the year = $17.13

Explanation:

Using the capital asset pricing model we have,

E(R) = R{_f} + \beta (R{_m} - R{_f})

Where E(R) = Expected return on investment

R[tex]{_f}[tex] = Risk free rate of return = 7%

[tex]\beta[tex] = 1.2

[tex]R{_m}[tex] = Return on the market

Here we have

E(R) = 7% + 1.2(13 - 7)%

= 0.07 + 0.072 = 0.142

= 14.2%

Therefore price of share at year end = $15 + 14.2% = $17.13

That is current cost + expected return on this investment = $17.13

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While working at a busy law firm, Bruce is using Skype to meet with a client in another state. Although Bruce is trying to conce
Neporo4naja [7]

Answer:

Information overload

Explanation:

Information overload can be described as a type of difficulty experienced by individuals in some situations, it is as a result of too much information present at a particular time, this makes it hard for the individual to carry out the right decision.

As individuals we come across a lot of information daily, but our brains can only process such information one at a time, if we attempt to process more data it may lead to the overstressing of the brain capacity which may eventually cause information overload.

6 0
3 years ago
PLEASE!!!
Cerrena [4.2K]

Answer:

The example that represents economic globalization is:

D. a Japanese store selling tea and spices from South Asia

Explanation:

The reason behind this answer is that globalization is the concept designed to understand the economic activity of a certain country outside its borders and engaging commercial activities in its zone with different countries or in zones further away. Then, because they are doing business around the globe they are doing a globalization economy.

4 0
3 years ago
Tinsel Co.’s balances in allowance for credit losses were $70,000 at the beginning of the current year and $55,000 at year end.
nevsk [136]

Answer:

$50,000

Explanation:

Since Tinsel Co.’s balances in allowance for credit losses were $70,000 at the beginning of the current year and $55,000 at year end.

If during the year, receivables of $35,000 were written off as uncollectible, the amount that Tinsel should report as credit loss expense at year end is $50,000 and this is derived by

Opening balance .................................... 70,000

Add: Receivables written off .............. .35,000

less: Closing balance .............................<u>(55,000)</u>

= Amount of credit loss for the year - <u>50,000</u>

<u />

7 0
3 years ago
Read 2 more answers
___involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.
garri49 [273]

Determining the budget involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.

Your net income serves as the cornerstone of an efficient budget. Your take-home pay is the sum of your income or salary less tax and employer-sponsored benefits like retirement plans and health insurance. Focusing on your gross pay instead of your net pay may drive you to overspend because you'll believe you have more money accessible than you actually have. Keep thorough records of your contracts and compensation if you're a freelancer, gig worker, contractor, or self-employed to help manage erratic revenue. Finding out where your money is going comes after determining how much you have coming in.

To know more about Determining the budget , visit;

brainly.com/question/28446337

#SPJ4

8 0
1 year ago
Assume the U.S. one-year interest rate is 8 percent, and the British one-year interest rate is 6 percent. The one-year forward r
NNADVOKAT [17]

Answer:

d. about 11.4 percent

Explanation:

% change in pound = ($2.05 - $1.95)/$1.95

                                 = 5.1%

Effective financing rate = (1 + 6%)(1 + 5.1%) - 1

                                       = 11.4%

Therefore, The effective financing rate for a U.S. firm that takes out a one-year, uncovered British loan is about 11.4 percent.

8 0
3 years ago
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