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3 years ago

Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875.

Business

1 answer:

ss7ja [257]3 years ago

6 0

The options provided are incorrect. The correct answer is given below

Answer:

New Portfolio beta = 1.125

Explanation:

The portfolio beta is the function of the weighted average of the individual stock betas that form up the portfolio. The formula to calculate the beta of a portfolio is as follows,

Portfolio beta = wA * Beta of A + wB * Beta of B + .... + wN * Beta of N

Where,

w represents the weight of each stock in the portfolio

New Portfolio beta = 50000/200000 * 0.8 + 50000/200000 * 1 +

50000/200000 * 1.2 + 50000/200000 * 1.5

New Portfolio beta = 1.125

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concord corporation purchased a new machine on may 1, 2012 for $559200. at the time of acquisition, the machine was estimated to

Gre4nikov [31]

Answer:

$17,160

Explanation:

According to the scenario, computation of the given data are as follows,

Purchase price = $559,200

Useful life = 10 years or 120 months

Salvage value = $26,400

Total time in months(May1,2012 - Mar1,2021) = 106 months

So, depreciation cost = ($559,200 - $26,400) ÷ 120 = $4,440 per month

So, total depreciation cost for 106 months = $4,440 × 106 = $470,640

Book value = Purchase price - depreciation

= $559,200 - $470,640

= $88,560

Hence, Loss = Book value - sold value

= $88,560 - $71,400

= $17,160

5 0

2 years ago

If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account which had been writte

joja [24]

Answer:

Please post the full question together next time.

If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account that had been written off on March 1, the entry to reinstate the account under the direct write-off method would include:______.

a. a debit to Allowance for Doubtful Accounts of $3,650.

b. is the same as it would be under the allowance method.

c. includes a credit to Bad Debt Expense of $3,650.

d. includes a credit to Cash of $3,650.

Explanation:

Under the direct write-off method ,

the journal entry is Bad debt expense A/c Dr XXXXX

To Account receivable A/c XXXXX

(Being the bad debt expense is recorded)

For recording this journal entry, we Debited the bad debt expense and credited the account receivable

This is the answer. Hence, all the given options are incorrect

3 0

3 years ago

Which of the following helped fuel economic growth by encouraging people to buy american goods? monopolies patents protectives t

Nataliya [291]

Tariffs. monopolies allow companys to set the price at whatever they want and they are illegal in the U.S exept in certain cases, patents cause one person or group to have compleate rights over their invention and keeping anyone from using it without having to pay them money. i have no idea what it means by protectives but finally tariffs are a tax on foreign good making it cheaper to by goods from in this case america

7 0

3 years ago

Texas Corporation is undergoing a complete liquidation and distributes land to Robert, one of its shareholders, in exchange fo

Oxana [17]

Answer:

Loss to be recognized is $25000

Explanation:

Liquidation refers to a process whereby a company's operation come to an end, which leads to distribution of assets and liabilities to the claimants and winding up the business.

A company may be forced to liquidate owing to consistent losses. In such cases, the claims of all the stakeholders cannot be satisfied and they receive pro-rata basis allocation which covers everybody's claim to an extent, if not fully.

In the given case,

Robert's receipt is Land. Liabilities attached to the land being $325,000 while the land has fair market value of $400,000.

Thus, after assuming the liability, Robert's actual realized amount is,

$400,000 - $325,000 = $75,000

Since, the land was received in consideration for discharge of Robert's own share in company amounting to $100,000.

Thus, Gain/Loss to be recognized by Robert = $75, 000 (receipts) - $100,000

= - $25,000

i.e Robert should recognize a loss of $25,000.

4 0

3 years ago

thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

oksian1 [2.3K]

Answer:

E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

Explanation:

Options are "A. cultural, lifestyle, and demographic changes, B. the birth of new industries, new knowledge, and disruptive technologies, C. weather, climate change, and water shortages, D. interest rates, exchange rates, unemployment rates, inflation rates, and economic growth, E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently."

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

The strategy decision making about the industry and competitive conditions involve evaluating the prices, buyer sensitivity to the prices, serviceability & frequency.

7 0

3 years ago