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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

You might be interested in
Portman Industries just paid a dividend of $1.68 per share. The company expects the coming year to be very profitable, and its d
alisha [4.7K]

Answer:

What is the expected dividend yield for Portman's stock today?

d. 6.40%

Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?

a. $0.52 per share

Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900

Explanation:

cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%

dividend in one year = $1.68 x 120% = $2.016

intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50

expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%

Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244

7 0
3 years ago
The cost allocation base​ ________. A. is a systematic way to link an indirect cost or group of indirect costs to cost objects B
ycow [4]

Answer:

The correct answer is letter "A": is a systematic way to link an indirect cost or group of indirect costs to cost objects.

Explanation:

Cost allocation is the method of assigning costs to cost objects. Cost objects are items or activities that are preferable to have their own costs allocated such as a product or a department within a firm. Cost allocation is a measure of profitability at the moment of evaluating a subsidiary. It is mainly used for financial reporting purposes.

6 0
3 years ago
A coffee distributor needs to mix a(n) Costa Rican coffee blend that normally sells for $9.50 per pound with a Kenya coffee blen
snow_tiger [21]

Answer:

5,11 pounds of Costa Rican coffee and 64,89 pounds of Kenya coffee

Explanation:

First, we need to know the proportion of every coffee in the mix trying with different percentages until getting the result of $13,49  

 

($9,50*25%)+($13,80*75%)=$12,73  

 

($9,50*10%)+($13,80*90%)=$13,37  

 

($9,50*7,5%)+($13,80*92,5%)=$13,48  

 

($9,50*7,3%)+($13,80*92,7%)=$13,49  

 

So, the percentage of Costa Rican coffee is 7,3% and Kenya coffee is 92,7%  

And we can get the pounds required to get 70 pounds  

 

70*7,3%=5,11

 

70*92,7%=64,89

   

We need 5,11 pounds of Costa Rican coffee and 64,89 pounds of Kenyan coffee to create 70 pounds of mixed coffee that can sell for $13,49 per pound  

8 0
3 years ago
Select the correct answer from the drop-down menu.
MissTica

Answer: Macro, External

Explanation:

Macroeconomics effect the entire world, while it scrutinizes the external forces that affect the company.

3 0
2 years ago
A vending​ machine's coin box contains​ nickels, dimes, and quarters. The total number of coins in the box is 284. The number of
solong [7]

Answer:

there are 59 nickels, 12 quarters, and 213 dimes

Explanation:

  • let n = nickels
  • let q = quarters
  • let d = dimes

first step:

d = 3 (n + q) = 3n + 3q

d + n + q = 284

0.10d + 0.05n + 0.25q = 27.25

second step:

3n + 3q + n + q = 284

0.10 (3n + 3q) + 0.5n + 0.25q = 27.25

third step:

4n + 4q = 284

0.3n + 0.3q + 0.05n + 0.25q = 27.25

fourth step:

n + q = 71

0.35n + 0.55q = 27.25

fifth step:

replace q = 71 - n

0.35n + 0.55(71 - n) = 27.25

sixth step:

0.35n + 39.05 - 0.55n = 27.25

seventh step:

11.8 = 0.2n

eighth step:

n = 59

q = 71 - 59 = 12

d = 284 - n - q = 284 - 59 - 12 = 213

6 0
3 years ago
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