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2 years ago

6

The stock of Wiley United has a beta of 0.92. The market risk premium is 8.4 percent and the risk-free rate is 3.2 percent. What

is the expected return on this stock?

1 answer:

babunello [35]2 years ago

6 0

Answer:

10.93%

Explanation:

Using CAPM formula, we have the following:

Expected return = risk-free rate + Beta x (Market risk premium)

= 3.2% + 0.92 x 8.4% = 10.93%

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When researchers calculate a basketball star's net worth they are measuring the star's _____.

polet [3.4K]

The answer is letter b, income and the wealth. The net worth is a way of having to measure the over all asset of the individual in which his or her income as well as his or her wealth that he or she has or acquires. The answer is letter b.

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3 years ago

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South

PtichkaEL [24]

Answer:

Queensland 14.7%

New South Wales is 24.0%

Explanation:

This is a case of modified return on investment since the question was specific that the return on investment should in terms margin and assets turnover.

The first task would be to compute margin and turnover whereas the return on investment would be the multiples of both performance measures.

Margin =operating income/sales

Asset turnover=sales/average operating assets

operating income/sales*sales/average operating assets=operating income/average assets

This question also require proofing the above formula as I have done.

Margin Assets turnover ROI

Queensland$82,320/$784,000=10.5%$784,000/$560,000=1.4 14.7%

South Wales$118,800/$1,485,000=8% $1,485,000/$495,000= 24.0%

R0I=margin*assets turnover

Queensland=10.5%*1.4=14.7%

New south sales=8%*3=24%

8 0

2 years ago

Spartan Systems reported total sales of $374,400, at a price of $24 and per unit variable expenses of $13, for the sales of thei

V125BC [204]

Answer:

$214,500

Explanation:

For the computation of the amount of contribution margin first we need to follow some steps which are shown below:

No of units sold = Total sales ÷ selling price per unit

= $374,400 ÷ $24

= $156,00

Variable cost = No of units sold × Variable cost per unit

Variable cost = $15,600 × $13

=$202,800

Contribution margin = Sales - Variable cost

= $374,400 - $202,800

= $171,600

CM ratio = Contribution margin ÷ Sales

= $171,600 ÷ $374,400

= 0.46

Contribution margin = CM ratio × Sales Contribution margin

= 0.46 × (1.25 × $374,400)

= $214,500

3 0

3 years ago

Mary co-signs for a car loan for Barbara. What can happen to the car if Barbara misses a few payments on the car loan?

madam [21]

Most likely, Mary would be charged a higher amount of interest for missing payments, and would be charged more and more the if she continued to miss payments.

4 0

2 years ago

Your boss, Penny Dirks, has asked you to analyze the airline industry using Porter's Three Generic Strategies. Which of the foll

vodomira [7]

Answer:

The correct answer is A.

Explanation:

Low cost companies, such as Southwest, Horizon, Frontier and JetBlue, are already one of the first options when organizing a trip. Flying is easier and more accessible every day, partly thanks to the low prices that airlines offer us, but also more uncomfortable, so you may ask yourself: what tricks do airlines use to make flying so cheap now?

Point to point routes. Low-cost companies do not offer transshipment services (network), so they save the cost of moving luggage from one plane to another and do not have to worry about the costs of connections between their routes.
Staff costs. When operating point-to-point flights and only short and medium radius, low cost never pay hotels to their crews to spend the night outside the airport where they are destined. Pilots and cabin staff always return to their base. In addition, their salaries are usually lower than those of traditional airline personnel.
Small airports. Operating in small airports and far from the main urban centers allows these airlines to avoid traffic jams, thus saving fuel and time.
Homogeneous fleet. Low cost usually use modern fleets and similar models, allowing them significant savings in maintenance.
Reduced services. These low-cost airlines do not serve meals, cut seat space and eliminate seat allocation, which saves a lot of time, but also money.
Additional income. Most low-cost airlines promote a wide range of gifts and lotteries on board, which gives them significant extra income.
It pays for everything. The reservation of tickets, billing at a counter and the right to carry a suitcase in the hold of the plane is paid with low-cost airlines.
Less expenses at the airport. Many low cost even give up having customer service offices, replacing them with call centers that involve a high cost of calling.
Public incentives. Many public administrations grant great economic aid to these low costs to prevent them from stopping to fly to their airports.
Very high rotation. Companies basically care about two things: get the maximum number of flights and fill the planes to the maximum. A plane is only profitable when it is flying, so more flights, more profitability.

3 0

2 years ago