1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vladimir79 [104]
3 years ago
5

A firm has a required return of 14.2% and a beta of 1.63. If the risk-free rate is currently 5.4%, what is the expected return t

o the market? Assume that CAPM is correct.
Business
1 answer:
hjlf3 years ago
6 0

Answer:

10.8%

Explanation:

Required rate of return = Risk free rate + Beta x ( Expected rate - Risk free rate )

14.2% = 5.4% + 1.63 x ( market rate - 5.4% )

14.2% - 5.4% = 1.63 x ( market rate - 5.4% )

8.8% / 1.63 = market rate - 5.4%

5.4% = market rate - 5.4%

Market rate = 5.4% + 5.4%

Market rate = 10.8%

Market rate = 10.8%

You might be interested in
Before year-end adjusting entries, Dunn Company's account balances at December 31, 2020, for accounts receivable and the related
navik [9.2K]

Answer:

Option (B) is correct.

Explanation:

Given that,

Accounts receivables = $1,500,000

Allowance for doubtful accounts = $90,000

Expected uncollectibles = $125,000

The collection of accounts receivables after the adjustment for bad debt expense is determined by deducting the expected uncollectibles from the total amount of accounts receivables.

Accounts receivable amount expected to be collected after adjustment for bad debt expense:

= Accounts receivables - Expected uncollectibles

= $1,500,000 - $125,000

= $1,375,000

7 0
3 years ago
In 2012 the change in business inventories is -$70 billion and GDP is $200 billion. Final sales in 2012 Group of answer choices
blsea [12.9K]

Answer:

are $270 billion

Explanation:

Change in business inventories in 2012 = -$70 billion

GDP of 2012 = $200 billion

Final sales in 2012 = GDP - Change in inventory

Final sales in 2012 = $200 billion - (- 70 billion )

Final sales in 2012 = $200 Billion + 70 billion

Final sales in 2012 = $270 billion

Hence proved that the correct answer is $270 billion

7 0
3 years ago
1-Elmer invested, P250,000- cash in his new business.<br> analysis <br> debit is - <br> credit is -
castortr0y [4]

Answer:

debit is P250,000

credit is 0

Explanation:

hope it helps:)

4 0
2 years ago
The Best Company is reviewing two options for replacing a piece of machinery. The first machine costs $100,230 and has a four-ye
andriy [413]

Answer:

Equivalent annual cost method

Explanation:

Equivalent annual cost method is a method used to choose between two projects with an unequal life span

The decision rule is to choose the product with the higher Equivalent annual cost

Equivalent annual cost method is better for making this decision because if net present value is used, the project with the higher useful life would be chosen. this does not mean it is more profitable

6 0
3 years ago
While showing a property to an unrepresented buyer, you owe the customer the duties of dealing honestly and fairly, accounting f
adelina 88 [10]

This is also known as the three duties towards the customer DAD Dealing with Honesty. Accounting for all funds and Disclosing the material facts to the buyer.

<h3>Who is a buyer?</h3>

A buyer is a customer who purchases the goods and or services of a company through which the company generates the revenue and earn profits. The buyer plays a key role in the development and running of a company.

The buyer should be allowed to have all the information about the product or service it is going to purchase, the buyer should be informed about the market rates and the demand of the goods as this is a material fact about the product.

Therefore it is a duty that a seller owes to the buyer to deal with honesty that is not charging high price if they are unaware of the price of the product.

Learn more about Buyer at brainly.com/question/27282505

#SPJ1

7 0
2 years ago
Other questions:
  • Ethical dilemma situation:
    8·1 answer
  • If you are trying to move your audience to do something, you should choose which organizational style?
    13·1 answer
  • Venus LLC is a large monopolistic electronic firm. The firm has been putting a lot of pressure on some of the complementor compa
    15·1 answer
  • Wanda is the project manager of her organization and is creating a checklist for her project team. She is working on the XYZ pro
    5·1 answer
  • Please identify what type of error the following sentence includes: While searching for employment, I travelled to Shanghai, Chi
    5·1 answer
  • Misterio Company uses a standard costing system. During the past quarter, the following variances were computed:
    7·1 answer
  • Buying insurance and investing in the future requires spending less in the present. Why is this a hard choice for many people? W
    10·2 answers
  • About 10 years ago, the POM Pomegranate Juice brand was created by a middle-aged couple in Nebraska. Theyâre business started sm
    11·1 answer
  • How can you change your city
    8·1 answer
  • Under which type of listing will an agent receive a commission only if he is the procuring cause of the sale?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!