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Anarel [89]
2 years ago
9

A stock has a beta of 1.16, the expected return on the market is 12 percent, and the risk-free rate is 3.5 percent. What must th

e expected return on this stock be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Anika [276]2 years ago
4 0

Answer:

13.36%

Explanation:

R = Rf + B(Rm - Rf)

where,

Rf= risk free return

B= beta

Rm= Market rate of return

Rm-Rf= Risk premium

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A city sells $15 million of general obligation bonds on October 1, 2019. The bonds mature at the rate of $1 million a year each
alexgriva [62]

Answer:

The multiple choices are:

a.$15,000,000

b.   $14,000,

c.    $13,750,000

d.   $0

The correct option is D,$0

Explanation:

The city by all standards should have adopted a modified accrual basis of accounting where amounts owed in terms of principal and interest payments are not recorded in the necessary books of accounts until they become due.

As at 30,2020,the amount due in respect of the loan has been recorded and paid off,hence as at 31st December,2020,no amount is due in respect of the general obligation bonds issued,hence no recording would be effected until next obligation date when the amount to be paid is due

4 0
3 years ago
Hilton's 2001 segment reporting note showed that Hotel Ownership has revenue of $1,886 million, operating income of $474 million
Roman55 [17]

Answer:

Option A is correct one.

<u>Managing & Franchising s asset turnover ratio at 17.6% suggests inefficiency when compared to Hotel Ownership</u>

Explanation:

The ratio of the operating return on sales for hotel ownership is:

474/1886 = 0.25

The asset turn-over for hotel ownership is :

1886/492.5 = 0.38 = 38%

Now, for managing and franchising :

The ratios are:

Operating return to sales = 113/ 120 = 0.94

Asset Turnover = 120/680 = 0.1765 = 17.65%.

6 0
3 years ago
In the market for breakfast cereal, the market is currently in equilibrium. suddenly there is a storm that destroys the wheat th
Reika [66]

The answer is<u> "Supply will decrease."</u>


A storm that crushed the wheat products would make the cost of that grain to rise. Given that grains are a critical contribution to the make of oat, the ascent in the cost of grain speaks to an expansion in input costs for oat. This is spoken to in the grain advertise as a leftward move of the supply bend and no adjustment in the demand curve.

7 0
3 years ago
Flow of Accounts into Financial Statements The balances for the accounts that follow appear in the Adjusted Trial Balance column
Luden [163]

Answer:

1. Accounts Payable will flow to the balance sheet because it is a liability account.

2. Accounts Receivable will flow to the balance sheet because it is an asset account.

3. Cash will flow in the balance sheet as it is an asset for the company.

4. Eddy Rosewood, Drawing will flow into Statement of owner's equity

5. Fees Earned will flow in the Income Statement

6. Supplies belong in the income statement as it is an expense account.

7. Unearned rent will flow in the balance sheet as it is a liability account.

8. Utility Expense will flow in the balance sheet as it is an expense account.

9. Wages Expense will flow in the income statement as it is an expense account.

10. Wages payable will flow in the balance sheet as it is a liability account.

8 0
3 years ago
On January 1, 2021, Crane Company sold property to Wildhorse Company. There was no established exchange price for the property,
Olegator [25]

Answer:

interest expense    409,406.4 debit

           note payable              409,406.4 credit

Explanation:

We have to apply the market rate to the carrying value of the note payable:

$4,094,064 x 10% = 409,406.4 interest expense

We will increase the note payable and declare the interest expense

Then, at payment we decrease our note payable account against cash.

3 0
3 years ago
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