Answer:
$38,265
Explanation:
Beg RE = $29,825
Plus Net Income = $6,540
Minus Dividends = ($2550)
Plus New Stock = $4450
Ending RE = $38,265
American Paper Company has a beta of 1.2. The risk-free rate is 6 percent and the required return on the market is 14 percent. The required rate of return on the security is:
<h3>What Is the Security Market Line?</h3>
The security market line (SML) is a line drawn on a chart that serves as a graphical representation of the capital asset pricing model (CAPM)—which shows different levels of systematic, or market risk, of various marketable securities, plotted against the expected return of the entire market at any given time.
Its Also known as the "characteristic line," the SML is a visualization of the CAPM, where the x-axis of the chart represents risk (in terms of beta), and the y-axis of the chart represents expected return. The market risk premium of a given security is determined by where it is plotted on the chart relative to the SML
The formula for plotting the SML is:
Required return = risk-free rate of return + beta (market return - risk-free rate of return)
Learn more about SML on:
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Answer:
b. Borrow $2,500
Explanation:
Preliminary balance = $12,000 + 30,000 - $34,500 = $7,500
Amount to borrow = Minimum cash balance - Preliminary balance = $10,000 - $75,000 = $2,500
Therefore, to maintain the $10,000 required balance, during June the company must $2,500.
Answer:
$119,300
Explanation:
the bank balance must be adjusted by adding the deposit in transit and the check that was charged against the account by mistake, and you must also subtract outstanding checks:
adjusted bank balance = $148,000 + $17,000 + $2,300 - $48,000 = $119,300
Answer:
When the value of the service ends, it will be necessary to include the charges for the truck, the granary and the land. It is not necessary to include your mother's service charges, as she is not charging for the service.
Explanation:
Setting up your own business can be quite a big challenge and you need a lot of control and planning so you don't have to lose money. One of the biggest challenges of becoming an entrepreneur is to price the service performed. As was said in the question above, many people do not know how to place a value on the service produced, mainly because they are unable to identify the expense for service production.
In summary, the expense to produce the service must take into account all charges related to any element necessary to perform the service. Thus, we can consider that in the case shown in the question above, it will be necessary for you to include expenses with the truck (gasoline, repairs, exchange of parts, etc.), with the rent of the granary, with the rent of the land and with the gratification of any employee. Since your mother is not charging for her services, this charge should not be included, however, your mother will only be in this service for two years. If the person replacing your mother charges for the service, this should be added to the cost.
