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vekshin1
2 years ago
13

Jerilu Markets has a beta of 1.09. The risk-free rate of return is 2.75 percent and the market rate of return is 9.80 percent. W

hat is the risk premium on this stock
Business
1 answer:
vodka [1.7K]2 years ago
5 0

Answer:

7.68 percent

Explanation:

Calculation to determine the risk premium on this stock

Stock risk premium = 1.09 (0.098 - 0.0275)

Stock risk premium = 1.09(0.0705)

Stock risk premium= 7.68 percent

Therefore the risk premium on this stock is 7.68 percent

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If you use credit what are you creating
Margaret [11]
<span>B is the correct answer. When you spend money on a credit card you are creating a debt because you are spending money you don't actually have at that point in time.</span>
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3 years ago
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Every society faces​ trade-offs because we live in a world of scarcity. Suppose a​ student-athlete has the opportunity to earn ​
Leokris [45]

Answer: Opportunity cost of returning to college next year is $1,000,000.

Explanation: Opportunity cost is the cost of the next best alternative sacrificed or foregone. When the athlete chooses to join college he is sacrificing his income that could be earned from playing the game. The player has the option of playing for the minor league baseball team for $1,000,000 or for European professional football team for ​$500,000. The person thus has a choice between playing for the minor league baseball team (since it is the highest paying) or going to college. Thus the opportunity cost of going to college will be $1,000,000.

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2 years ago
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Permanent tax cuts shift the AD curveSelect one:a. farther to the left than do temporary tax cuts.b. not as far to the right as
Phoenix [80]

Answer:

farther to the right than temporary tax cuts

Explanation:

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6 0
3 years ago
pryor frosted flakes company offers its customers a pottery cereal bowl if they send in 4 boxtops from flakes boxes and $1.00. T
trasher [3.6K]

Answer: $30,000

Explanation:

Company estimates that 60% of boxtops will be redeemed.

They sold 500,000 boxes

= 500,000 * 60%

= 300,000 boxtops will be sent in.

So far, 220,000 have been sent in. How many left;

= 300,000 - 220,000

= 80,000 boxtops are still to be sent in

4 boxtops are needed to receive a pottery bowl so with 80,000;

= 80,000/4

= 20,000 pottery bowls are due to be issued.

Each bowl costs $2.50 to make.  Customers will send in $1 however so effectively it will cost the company;

= 2.50 - 1

= $1.50

With 20,000 still left to be issued, each costing $1.50, the total liabilitiy for outstanding premiums to be recorded at the end of 2007 is;

= 20,000 * 1.5

= $30,000

4 0
2 years ago
On July 1 the Fisher Shoe Store paid $24,000 to Acme Realty for 6 months rent beginning $24,000 to Acme Realty for 6 months rent
pochemuha

Answer:

C) debit Rent Expense, $4,000; credit Prepaid Rent, $4,000.

Explanation:

July 1, prepaid rent fro 6 months

Dr Prepaid rent 24,000

    Cr Cash

July 31, adjusting entry to record rent expense

Dr Rent expense 4,000

    Cr Prepaid rent 4,000

total prepaid rent = 24,000 for six months

after one month, 24,000 / 6 = 4,000 must be recorded as rent expense and prepaid rent must be credited.

3 0
3 years ago
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