Answer:
c. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks.
Explanation:
The portfolio beta which is a measure of the systematic risk for a portfolio is calculated by taking the weighted average of betas of all the individual stocks that form up the portfolio. So the statement stating that the portfolio beta is equal to weighted average of individual stock betas is correct.
Answer:
$2.4 million
Explanation:
Given that
Earnings before interest and tax (EBIT) = 3 million
Depreciation = 1.2 million
Tax rate = 40%
Capital expenditure + Net operating working capital (NOWC) = 0.6 million
Recall that
Free cash flow = EBIT (1 - T) + depreciation - ( Capital expenditure + NOWC)
Therefore,
FCF = 3 (1 - 0.4) + 1.2 - 0.6
= 1.8 + 1.2 - 0.6
= 3.0 - 0.6
= $2.4 million
The correct relevant amount of time taken by investment of $5000 to become $6000 will be 2.612 years. So the correct option that matches the quoted statement is D.
Compound Interest formula will be applied to calculate such investment to achieve the desired amount for the purpose of payment of down-payment of the car.
- Compound Interest is basically referred to as the interest over the accrued interest achieved over such time frame over the top of interest received on principal amount of investment.
- The formula of compound interest compounded monthly is as given below,
- Using the formula we can say that we require an interest of $1000 so that the amount becomes $6000. We can use the formula and put the values as under.
- This can also be written as,
- So we can say that it takes 2.612 years to make such investment into $6000 at the interest rate of 7% which is compounded on a monthly basis.
Hence, the correct option is C is that it will take 2.612 years to get returns as $6000 over such investment at the interest rate of 7 percent per year.
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brainly.com/question/25857212
Answer:
$1,620,000
Explanation:
Assume that Sharp operates in an industry for which NOL carryback is allowed.
In its first three years of operations Sharp reported the following operating income (loss) amounts: 2019 $ 1,350,000 2020 (3,150,000 ) 2021 5,400,000
There were no deferred income taxes in any year. In 2020, Sharp elected to carry back its operating loss.
The enacted income tax rate was 25% in 2019 and 30% thereafter.
In its 2021 balance sheet, what amount should Sharp report as current income tax payable is the applicable tax rate for 2021 applied on the income of the year: 30% x 5,400,000 = $1,620,000
Answer:
-$240 million
Explanation:
The computation of the net cash flows from operating activities is as follows:
As we know that
Net cash flows from operating activities + net cash flows from financing and investing activities = Net Increase in cash for the year
Net cash flows from operating activities + $600 million = $360 million
So, the net cash flows from operating activities is
= -$240 million