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Bond [772]
3 years ago
13

If IBM has a beta of 1.2 when the risk-free rate is 6% and the expected return on the market portfolio is 18%, the expected retu

rn on IBM is:
Business
1 answer:
MA_775_DIABLO [31]3 years ago
4 0

Answer:

20.4%

Explanation:

Calculation to determine what the expected return on IBM is:

Using this formula

E(Ribm)=Risk-free rate+(Market portfolio -Risk-free rate) Beta

Let plug in the formula

E(Ribm) = 6% +(18%-6%)1.2

E(Ribm)=6%+12%(1.2)

E(Ribm)=6%+14.4%

E(Ribm)=20.4%

Therefore the expected return on IBM is:20.4%

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which of the following consumer products contain radioactive substances? radio luminescent paints and signs, mantles of camping
likoan [24]

Radio-luminescent paints and signage, lantern mantles, vibrant ceramic glazes, and potassium-based salt alternatives are a few examples of items that contain radioactive substances.

An unstable radioactive material emits harmful radiation types. It is radioactive substances unstable because the electric force that seeks to separate the atom's nucleus from the rest of the atom is stronger than signage the strong nuclear force holding it together. The atoms will transform into more stable ones as a result of its instability.

Radioactivity can also be thought of in terms of energy. A radioactive atom radioactive substances contains more energy than it requires. When something has more energy than it requires, it will eventually lose signage that energy since the universe's energy tends to disperse. Energy in the universe cannot be generated or destroyed, therefore when a radioactive atom loses its excess energy through decay, it must go somewhere.

Learn more about radioactive substances here

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5 0
2 years ago
What would most likely happen to the price of cable TV in Sydney, NE, when the single cable TV firm now has a new competitor com
Vika [28.1K]

Answer:

If the the single cable TV firm from Sydney now has a new competitor coming into town, what will most likely happen with the price of the service is that it will go down and become more accessible to consumers, as a direct consequence of the generation of competition from market between the companies involved.

The concept of competition plays a central role in economic theory. it is a situation by which different actors (companies or consumers) compete for a share in the same activity, typically the sale or purchase of a product or service. For economic operators, it is often an advantage to have limited competition on their own side of the market and a lot of competition on the opposite side, as it allows for high profits. From the point of view of society, as high a competition as possible is usually an advantage, as it ensures the best possible utilization of society's resources.

6 0
3 years ago
Kirkwood acquires 100 percent of the outstanding voting shares of Soufflot Company on January 1, 2018. To obtain these shares, K
lesya [120]

Answer:

$555,000

Explanation:

Calculation for the amount that will be reported for consolidated cash after the acquisition is completed

Cash at Kirkwood Inc $475,000

(900-400-15-10)

Add Cash at Soufflot Company $80,000

Consolidated cash after acquisition is completed $555,000

Therefore the amount that will be reported for consolidated cash after the acquisition is completed will be $555,000

4 0
3 years ago
Stadford, Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the fir
miss Akunina [59]

Answer: (A) Capital structure

Explanation:

The capital structure is basically refers to the overall financial operation in an organization for the growth of the company. The combination of the debt and the equity is basically known as capital structure.

The equity is basically refers to the common and the preferred stock and the debt is one of the form of bond issue.

Therefore, the mixture of 40 percent debt and the 60 percent of the equity is refers to capital structure.

3 0
3 years ago
The master budget of Sheridan Company shows that the planned activity level for next year is expected to be 50000 machine hours.
barxatty [35]

Answer:

$1,350,000

Explanation:

Calculation to determine the total manufacturing overhead costs

First step is to calculate the Variable overhead

Variable overhead= $720,000 + $180,000 +$150,000

Variable overhead=$1,050,000

Second step is to calculate Unitary variable overhead

Unitary variable overhead= $1,050,000/50,000

Unitary variable overhead= 21

Now let calculate the total manufacturing overhead costs

For 60,000 units:

Total Manufacturing Overhead Costs = 21*60,000 + 90,000

Total Manufacturing Overhead Costs= $1,350,000

Therefore the total manufacturing overhead costs is $1,350,000

6 0
3 years ago
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