Answer:
Capm= RF+B(RM-RF)
Capm required return Stock A= 0.04+(0.85*0.06)=0.091=9.1%
9.1% is more than the expected 8 percent return which means that the investor should not buy this security as expected return is less than required return
Capm required return Stock B=0.04+(0.95*0.06)=0.097=9.7%
9.7% is more than the expected 9 percent return which means that the investor should not buy this security as expected return is less than required return
Capm required return Stock C=0.04+(1.2*0.06)=0.112=11.2%
11.2 percent is more than the expected 10 percent return which means that the investor should not buy this security as expected return is less than required return
Capm required return Stock D=0.04+(1.35*0.06)=0.121=12.1%
12.1% is less than the 14 percent expected return which means that the investor should buy this security as expected return is more than required return.
Capm required return Stock E=0.04+(0.5*0.06)=0.07=7%
7 percent is more than the expected 6 percent return which means that the investor should not buy this security as expected return is less than required return
Explanation:
Answer:
<u>18,750 units</u>
Explanation:
A firm has the following forecast information for sales of Product X:
April 15,000 units
May 17,000 units
June 19,000 units
July 18,000 units Product X sells for $3 per unit.
Half of the firm's sales are for cash and the other half is on account.
Credit sales are collected in the following pattern: 60% in the month of sale, 30% in the month following sale, and 5% in the second month following sale (the remainder are uncollectible).
If the firm targets its ending inventories to be 25% of the following month's sales, what are the budgeted purchases (in units) for June
.
Purchases Budget = Required production for sales - opening inventory of raw materials + closing inventory of raw materials = Raw materials required
June's Production Budget
Required production for sales = .............................................19,000 units
less: Beginning inventory (25% of June's sales) =............... 4,750 units
Add: Required Ending Inventory (25% of July's sales) = ...<u>4,500 units</u>
Raw materials required for purchase in June =.................. <u>18,750 units</u>
One of the largest contributions to health problems in
low-income countries is the clean water access. It is because this is the
common problem in low-income countries because they don’t usually have clean
water because of their standing and other factors that create this problem and
by that, this is the largest contributions that are used a project or
contribution given by other counties to help the low-income countries
experiencing this type of crisis.
