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IceJOKER [234]
4 years ago
5

You have a $45,000 portfolio consisting of Intel, GE, and Con Edison. You put $21,200 in Intel, $10,000 in GE, and the rest in C

on Edison. Intel, GE, and Con Edison have betas of 1.3, 1, and .8, respectively. What is your portfolio beta
Business
1 answer:
poizon [28]4 years ago
6 0

Answer:

The portfolio beta is 1.08

Explanation:

The portfolio beta is the function of the weighted average of the individual stock betas that form up the portfolio. The weighatge is assigned to the stocks based on the investment in the stock as a proportion of the total investment in the portfolio. Thus, the portfolio beta is,

The investment in Con Edison = 45000 - 21200 - 10000 = $13800

Portfolio beta = 21200/45000 * 1.3  +  10000/45000 * 1  +  13800/45000 * 0.8

Portfolio beta = 1.08

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If bonds with a face value of $208,000 are issued at 97, the amount of cash proceeds is ____
madam [21]

Answer:

C) $201,760

Explanation:

To compute the amount of cash proceeds, we have to multiply the bonds face value with the issued price percentage.  

Since only issue price is given, so we assume it is in percentage form because the number of shares is not given in the question. So, we assume this.  

In mathematically,  

Cash proceeds = Face value × 0.97

                          = $208,000 × 0.97

                          = $201,760

4 0
4 years ago
You work for a company that is installing a sewer manhole. The chamber and piping under the manhole are to be buried in the grou
marshall27 [118]
I honestly don’t know I’ve tired re-reading it over and over and idk I’m so sorry
8 0
3 years ago
Under what type of compensation plan is the agent responsible for the costs of advertising and promotion?
Oksana_A [137]

Answer:

100% plan

Explanation:

The 100% plan is when the agent doesn't have a base salary and the job pay depends completely on the comission for selling products. This compensation plan provides a big earning potential and the agent is an independent contractor and would have to cover costs of advertising and promotions. Because of that, the answer is that the type of compensation plan in which the agent is responsible for the costs of advertising and promotion is the 100% plan because the agent is not considered an employee and only receives the comission and has to cover the costs associated with advertising and promotion.

5 0
3 years ago
Bennett Co. has a potential new project that is expected to generate annual revenues of $260,300, with variable costs of $143,20
patriot [66]

Answer:

$45,340

Explanation:

Calculation to determine the annual operating cash flow

Sale $260,300

Less: Operating Cost $143,200

Contribution $117,100

($260,300-$143,200)

Less: Fixed Cost $60,700

Less: Depreciation as per table given below $24,800

Profit before tax $31,600

($117,100-$60,700-$24,800)

Tax $11,060

($34%$31,600)

Profit After Tax $20,540

($31,600-$11,060)

Add Depreciation $24,800

Cash Profit After tax $45,340

($20,540+$24,800)

Therefore the annual operating cash flow is $45,340

3 0
3 years ago
Vaughn Manufacturing incurred the following costs for 84000 units: Variable costs $504000 Fixed costs 392000 Vaughn has received
kirill [66]

Answer: $9.80

Explanation:

The unit price to earn $5000 on the order will be calculated thus:

The variable costs for 2500 units will be:

= 504000/84000 × 2500

= 15000

The unit price will now be:

= (15000+4500+5000) / 2500

= 24500 / 2500

= $9.80

The unit price is $9.80

5 0
3 years ago
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