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jenyasd209 [6]
3 years ago
7

"Given the following information from Cullumber Corporation, what price would the CAPM predict that the company’s stock will tra

de for one year from today? (Do not round intermediate calculations. Round final answer to 2 decimal places, e.g. 50.75.) Risk free rate: 3.6 % Market risk premium: 8.6 % Beta: 0.65 Current stock price: $64.60 Annual dividend: $1.84"
Business
1 answer:
Natasha_Volkova [10]3 years ago
5 0

Answer:

$68.70

Explanation:

Risk free rate: 3.6 %

Market risk premium: 8.6 %

Beta: 0.65

Current stock price: $64.60

Annual dividend: $1.84

The expected rate of return = 3.6% + 0.65*8.6%

The expected rate of return = 0.036 + 0.0559

The expected rate of return =  0.0919

The expected rate of return = 9.19%

Required return = (P1-P0+Dividends)/P0

9.19% =  [(Price + 1.84)/64.60 ] - 1

9.19% + 1 = (Price + 1.84)/64.60

64.60*(0.0919 + 1) = Price + 1.84

70.53674 = Price + 1.84

Price = 70.53674 - 1.84

Price = $68.69674

Price = $68.70

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Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience
statuscvo [17]

Answer:

b.Experience-rating plan

Explanation:

Experience rating is a method of evaluating used by insurance providers to adjust premiums up or down. The rating reflects your previous loss experience. It is based on the presumption that your historical loss experience predicts your future loss experience. In other words, your future losses are likely to be similar to those you incurred in the past. The Experience Rating Plan is mandatory for all eligible insureds. Any action taken in any form to evade the application of an experience modification determined in accordance with this Plan is prohibited.  The object of the Experience Rating Plan is to recognize the differences between individual insureds through the use of the individual insured's own loss experience. The experience rating process serves as a means of using a history of past losses to predict the future losses of an insured.

This is done by comparing the experience of an individual insured to the average insured in the same classification. Therefore, using the insured's past experience, the experience modification is determined by comparing the actual losses to expected losses.   An insured with better than average experience will produce a credit experience modification factor, while an insured with worse than average experience will produce a debit experience modification factor.  A credit experience modification factor, less than 1.00, results in a premium reduction. A debit experience modification factor, greater than 1.00, results in a premium increase. An experience modification factor of 1.00, or unity, does not change premium.

6 0
2 years ago
Comprehension and speed are the two most important traits in reading for business. please select the best answer from the choice
OLga [1]

Answer:

true

Explanation:

But accuracy would be a better option speed is good, so you are always on task and comprehension for big words.

3 0
2 years ago
term fixed price contract to build an office tower for​ $10,000,000. In the first year of the contract Tullis incurs​ $3,000,000
almond37 [142]

Answer: $750,000

Explanation:

Given that,

Fixed price contract = $10,000,000

Cost incurred in the first year = $3,000,000

Remaining costs to complete =​ $5,000,000

Tullis billed =​ $4,000,000 in year 1

Collected​ by the end of the year = $3,500,000

Percentage of work completed = \frac{Expenditures\ Incurred\ from\ Inception\ to\ Date}{Total\ Estimated\ Costs\ for\ the\ Contract}

= \frac{3}{8} \times 100percent

= 37.5%

Revenue recognized = 37.5% of $10,000,000

                                    = $3,750,000

Income recognized = Revenue recognized - Cost incurred in the first year

                                 = $3,750,000 - $3,000,000

                                 = $750,000

8 0
3 years ago
Is the sole shareholder of a corporation. for the past five years, has reported little or no taxable income as a result?
OleMash [197]

For the past five years, Logan has reported little to no taxable income because he paid Graham a salary of $500,000 a year.

Multiply that result by the number of shares held for each individual shareholder. Complete Appendix K, the form companies must submit to list the amount of income attributable to each shareholder for the tax year.

The gross S Corporation income (or loss) reported in Appendix E is included in the income from rentals, royalties, partnerships, S Corporations, trusts, etc. section of an individual's Form 1040.

S corporation tax rate refers to the federal, state, and local personal income taxes an S corporation must pay. S Corporation owners must pay state and local income taxes ranging from 0% to 13.3% and a maximum federal income tax of 39.6%.

Learn more about shareholder at

brainly.com/question/25686394

#SPJ4

5 0
2 years ago
What is the origin of the term “to post” advertisements?
OlgaM077 [116]
The answer is A "Colonial merchants once nailed advertisements on posts in front of their stores." please marl me as brainliest
4 0
3 years ago
Read 2 more answers
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