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Alex
3 years ago
14

Your portfolio has a beta of 1.28. The portfolio consists of 35 percent U.S. Treasury bills, 31 percent Stock A, and 34 percent

Stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of Stock B?
Business
1 answer:
Zarrin [17]3 years ago
6 0

Answer:

2.85

Explanation:

U.S. Treasury bills are a risk-free asset, and thus have a beta of zero. Since Stock A has a risk-level equivalent to that of the overall market, its beta is one. Therefore, the beta for Stock B can be found by:

1.28=0.35\beta_{T}+0.31\beta_{A}+0.34\beta_{B}\\1.28 = 0.35*0+0.31*1+0.34\beta_{B}\\\beta_{B}=\frac{1.28-0.31}{0.34}\\ \beta_{B}=2.85

The beta of Stock B is 2.85.

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Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimate
anygoal [31]

Answer:

The requirements are missing, so I looked for a similar question. This is a financial lease since the PV of the lease payments represents 97% of the asset's value.

January 1, 2021, equipment leased from Deal leasing

Dr Right of use asset 405,541.20

    Cr Lease liability 405,541.20

the right of use asset = PV of lease payments = $60,000 x 6.75902 (PV annuity due, 10%, 10 periods) = $405,541.20

January 1, 2021, first lease payment

Dr Lease liability 60,000

    Cr Cash 60,000

December 31, 2021, depreciation expense on leased asset

Dr Depreciation expense 40,554.12

    Cr Accumulated depreciation 40,554.12

depreciation expense = $405,541.20 / 10 = $40,554.12

December 31, 2021, interest expense on asset lease

Dr Interest expense 34,554.12

    Cr Interest payable 34,554.12

interest expense = ($405,541.20 - $60,000) x 10% = $34,554.12

5 0
3 years ago
What are important of storing​
Free_Kalibri [48]

Answer:

I'm sorry, but the way you worded this is impossible to understand. SO therefore, I cannot answer your question.

Explanation:

8 0
3 years ago
The tax on a property with an assessed value of $ 68 comma 000 is $ 550. Using a​ proportion, find the tax on a property with an
Anika [276]

Answer:

The answer is $994.85

Explanation:

This can be calculated using the proportion method.

Unit $ worth of the property costs = $550 / $68,000 = 0.008088

$123,000 worth of property costs = 0.008088 * $123,000 = $994.85

3 0
3 years ago
1. All of the factors below create a change in demand for alcohol except: a. Change in cigarette prices given that cigarettes an
Gnesinka [82]

Answer:

d. Rise in price of alcohol

Explanation:

Change in Quantity demanded occurs due to change in Price. Change in Demand happens due to factors other than price - Income, Substitute & Complementary good's price, Taste.

Change in alcohol demand - due to substitute Cigarette price change , Change [Decrease] in alcohol demand - due to change in taste based on anti drinking sentiments, higher risk of alcohol liver cirrhosis , Change [Increase] in alcohol demand - due to change [rise] in Income : These all are due to factors other than price & hence are 'Change in Demand'

Rise in price of Alcohol leads to 'Change [Expansion] in Quantity Demanded' due to price change [rise] .

5 0
3 years ago
Custom Engines Company has the following estimated costs for the upcoming​ year:
Lelechka [254]

Answer:

$22

Explanation:

The computation of the predetermined manufacturing overhead rate per hour is shown below:

= Total Factory overhead ÷ Estimated labor hours

where,

Total factory overhead is

= Salary of factory supervisor + Heating and lighting costs for factory + Depreciation on factory equipment

= $37,000 + $22,300 + $5,600

= $64,900

And, the machine hours is 2.900

So, the predetermined overhead rate is

= $64,900 ÷ 2,900

= $22

This is the answer but the same is not given in the options

6 0
3 years ago
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