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Usimov [2.4K]
3 years ago
12

A stock has an expected return of 14.3 percent, the risk-free rate is 3.9 percent, and the market risk premium is 7.8 percent. w

hat must the beta of this stock be? 1.67 1.08 .94 1.21 1.33
Business
2 answers:
ohaa [14]3 years ago
8 0

Answer:

1.33

Explanation:

Ex. Return = Risk free rate + Market Premium*Beta

14.3 = 3.9 + 7.8*Beta

10.4 = 7.8*Beta

Beta = 1.33

Flura [38]3 years ago
4 0
Are the numbers your choices? or is there any other info you can send over
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Lois has a balance of $970 on a credit card with an APR of 24.2%, compounded monthly. About how much will she save in interest o
Aleks04 [339]

Answer:

Lois will save $152.51 when she wil transfer her balance.

Explanation:

Amount to be paid in 1 year for original credit card is given as

P_1^{'}=P*(1+r_1)^t

Here P^{'}_1 is the amount to be paid after P is the balance which is 970, r_1 is the APR for first credit card which is 24.2% and t is compounding frequency which is 12 so

P_1^{'}=P*(1+r_1)^t\\P_1^{'}=970*(1+\dfrac{24.2}{12}\%)^{12}\\P_1^{'}=970*(1.0207)^{12}\\P_1^{'}=970*1.2707\\P_1^{'}=\$1232.61

Similarly for the second one the values are calculated as

P_2^{'}=P*(1+r_2)^t\\P_2^{'}=970*(1+\dfrac{10.8}{12}\%)^{12}\\P_2^{'}=970*(1.108)^{12}\\P_2^{'}=970*1.1135\\P_2^{'}=\$1080.10

The differnce of the two values is calculated as

P_1'-P_2'=1232.61-1080.10\\Difference=\$ 152.51

The difference is $152.51 which she could save.

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2 years ago
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3 years ago
On July 1, 2017, Lopez Company paid $2,600 for six months of insurance coverage. No adjustments have been made to the Prepaid In
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Answer:

a.

Date                          Account Title                                       Debit           Credit

Dec. 31, 2017           Insurance expense                          $2,600

                                 Prepaid insurance                                                 $2,600

b.

Date                          Account Title                                       Debit           Credit

Dec. 31, 2017           Supplies Expense                               $9,700

                                  Supplies                                                                 $9,700

<u>Working</u>

Supplies = Beginning balance + Purchases - Closing balance

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5 0
3 years ago
Cameron has applied for a loan to expand his young business. When bankers look for evidence of whether he will be able to repay
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Answer:

what Cameron's firm has done in the past.

Explanation:

Small businesses do request for loans in some cases when they aim at using borrowed funds as capital to become more profitable in their business. When such requests are made, the bank can decide to look at what has been done in the past by the firm to ascertain if they can be able to repay the loan. They usually look at the current and past loans (If any) and debts that have been incurred by the business. In some cases, they also examine the bank accounts the business won and their tax IDs, etc.  

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<span>Ke Guiwen is visiting the United States from China. As he visits several companies and talks to both workers and managers, he is surprised to realize that although U.S. workers seem to have more autonomy than the employees in his company, they also tend not to work together to complete tasks.  </span>Ke Guiwen’s surprise is probably due to a communist orientation  in his culture.  
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