Answer:
Correct answer is 1.28
Explanation:
Investment in Y=(100,000-72500)=$27500
Portfolio beta=Respective betas*Respective investment weights
=(72500/100,000*1.5)+(27500/100,000*0.70)
=1.28
Answer:
Bond Price= 816.29
Explanation:
Giving the following information:
YTM= 0.075
Coupon= 0.058*1,000= 58
Years to maturity= 23 years
Face value= 1,000
<u>To calculate the price of the bond, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 58*{[1 - (1.075^-23)] / 0.075} + [1,000/(1.075^23)]
Bond Price= 626.79 + 189.5
Bond Price= 816.29
Answer:
See below.
Explanation:
We first calculate total costs for the purchase and lease.
Purchase = $3,120 + 600 + (400 * 4) = $5320
Lease cost for 4 years = $1,360 * 4 = $5,440
Differential analysis indicates a $120 more payment when the equipment is leased.
Although this puts the total cost over the 4 years of lease higher than the purchase, it must be noted that lease is annual and a lump sum is not needed where as although the purchase gives you an asset, the savings on tying up the cash in purchase may be able to be used else where more profitably thus a lease seems more viable specially when present value of money would be taken in to account.
Hope that helps.
Answer:
a. Is caused by changes in the business cycle.
Explanation:
Cyclical unemployment depends on the economic cycle that a country's economy is going through at a given time. In stages of recession or crisis, cyclical unemployment increases while in phases of expansion they decrease.
In economic terms, cyclical unemployment is said to be a fluctuation in the unemployment rate with respect to its natural rate, that is, the unemployment rate that cannot be reduced and is considered normal in an economy.
Cyclical unemployment increases when there is a fall in the economic activity of a country. In times when companies reduce their sales and investments, the demand for work is also reduced, so some people are laid off from their jobs while others cannot find a new job.
This type of unemployment is expected to reduce as economic activity begins to reactivate.
Answer:
Total capital gain will be $1360800
Explanation:
We have given EPS = $4.20
Total number of shares = 2000000
So total Net Income = EPS x No. of shares = $4.20 x 2000000 = $8,400,000
Dividend = 60% x 8,400,000 = $5040000
25% shareholder participated in dividend reinvestment
So Capital raised = 27% x $5040000 = $1360800
So total capital gain will be $1360800