Answer:
Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.
Explanation:
Expected return= free return + Beta (Expected rate of return – risk free rate)
Portfolio A
6%+ +.8*6%
= 6%+4.8%= 10.8%
Portfolio B
6%+1.5(6%)
6%+9%= 15%
It depends on different factors. Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.
Answer:
D.
Explanation:
A rent ceiling is a government regulation that makes it illegal to charge a rent higher than a specified level. Meaning that the landlord of a building cannot charge a rent amount higher than the maximum price set forth by the rent ceiling. Landlords that violate this law are usually fined by the government as a consequence.
Answer:
Information used to determine which products to produce
Explanation:
Determination of products whose production is not yet decided is a managerial issue, and it is part of internal information that should be not delivered to external parties. Furthermore, this data usually is not accurate, so sharing outside would not be even recommended for this sole reason.
Answer:
Annual synergy gain = $ 178,500
Explanation:
Value of synergy gain from acquisition = 18 - 15.9 = 2.1 million
Annual synergy gain = 2.1 *.085 = .1785 million or $ 178,500
Annual synergy gain = $ 178,500
Answer:
c. $8.05
Explanation:
Calculation to determine What is the value of this stock at a required return of 16.4 percent
First step is to calculate the P2
P2 = ($1.35/.164)
P2= $8.23
Now let calculate the value of the stock
P0 = [$1.23 /1.164] + [($1.25 + 8.23)/1.164^2]
P0 = $8.05
Therefore the value of this stock at a required return of 16.4 percent is $8.05
