Answer:
2.2
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
18% = 7% + Beta × 5%
18% - 7% = Beta × 5%
11% = Beta × 5%
So, the beta would be
= 2.2
The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same has applied.
Answer:
The quarterly deposit required is $ 20,578.36
Explanation:
in order to determine the needed quarterly deposit, we make use of pmt formula in excel, which is given as :
=-pmt(rate,nper,-pv,fv)
rate is the rate of return on the deposit at 8% per year but 2% per quarter(8%/4)
nper is number of deposits required in the fund,which number of years ,5 multiplied by 4(4 deposits per year)
pv is the present of the value of the future amount which is zero as it is not required.
Fv is the amount expected in 5 years which is $500,000
=-pmt(2%,20,0,500000)
pmt= $20,578.36
Answer: 8.56crews
Explanation:
To get critical fractile probability SL,
We stock up the local trash collection capacity.Cost of overstocking by 1 ton =MC = 625/5 = $125Cost of understocking by 1 ton = additional cost of using outside trash pick up = MB = $650-$125 = $5
SL = Prob(RQ) = MB /( MB + MC) = 525/(125 + 525) = 0.8077 appropriate # of crews = 8.56 crews
Answer:
See bellow
Explanation:
With regards to the above, Rouse total stockholder's equity is computed as;
= Preferred stock + common stock + paid in capital in excess of par (preferred stock and common stock) + retained earnings - Treasury stock
= $150,000 + $1,950,000 + $60,000 + $27,000,000 + $7,650,000 - $630,000
= $53,730,000
Answer:
the firm pay 39 millions dividends to his shareholders during the year.
Explanation:
The retained earnings identity is as follow:
beginning RE + net income - dividends = ending RE
we plug our values into the formula:
970 + 30 - dividends = 961
we clear dividends:
970 + 30 - 961 = dividends
And solve:
dividends = 39
<u>Notes:</u>
For every account, we always have this similar identity:
a beginning balance
a type of transaction that increase their balance
another kind of transaction which decreased
and a final balance which is the net of the previous.
beginning + increase - decrease = ending
Always try to identify how each transaction impact the account and from there, setup the equation.
