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3 years ago

5

Consider the CAPM. The risk-free rate is 5%, and the expected return on the market is 15%. What is the beta on a stock with an e

xpected return of 17%

1 answer:

Maslowich3 years ago

4 0

Answer:

im sorry

Explanation:

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Max and Alexandra are married and incur $5,500 of qualifying expenses to care for their two children, ages 2 and 5. Max's earned

Sati [7]

Answer:

$5,000

Explanation:

Although the limit for two qualifying children is the lesser of $6,000 or the actual expenses, the earned income limitation may apply. The amount of qualifying expenses can not exceed the earned income of the spouse with the lesser earned income, in this case, $5,000 .

Which is why the amount of the qualifying expenses for purposes of computing the child and dependent care credit is $5,000

3 0

3 years ago

True or False: Computing interest using the sum-of-the-digits method allocates more interest at the beginning of a loan than at

Serhud [2]

Answer:

True

Explanation:

To illustrate how the sum-of-the-digits method allocates interest we can use a lease example:

You are the lessor and you will lease a machine during 4 years. The lease requires 4 equal payments of $100,000 at the beginning of the year. After the lease, the asset's salvage value = $0.

The asset's current value = $300,000, so total interests received = $100,000

Using the sum-of-the-digits method, you will allocate interest as follows:

year 1 = 3/6 x $100,000 = $50,000
year 2 = 2/6 x $100,000 = $33,333
year 3 = 1/6 x $100,000 = $17,000

The largest portion of interests is allocated during the beginning of the loan.

5 0

3 years ago

Tammy, a resident of Virginia, is considering whether to purchase a $100, 000 North Carolina bond that yields 4.6% before tax. S

Degger [83]

Answer:

A. Virginia Bond: $4,500

North Carolina Bond: $4,451

B. Virginia Bond

Explanation:

A. Calculation to Determine the after tax income for Virginia Bond

Using this formula

After tax income for Virginia Bond=Face value*Virginia bonds of comparable risk

Let plug in the formula

After tax income for Virginia Bond=$100,000*4.5%

After tax income for Virginia Bond=$4,500

Calculation to Determine the after tax income for North Carolina Bond

Interest income before tax $4,600

(100,000*4.60)

Less State marginal tax ($230)

(5%*$4,600)

Interest income net of state tax $4,370

($4,600-$230)

Add Federal marginal tax $81

(35%*230)

After tax income for Noth Caroline Bond $4,451

Therefore the the after tax income from each bond will be:

Virginia Bond: $4,500

North Carolina Bond: $4,451

B. Based on the above calculation the options that will provide the greater after-tax return to Tammy will be VIRGINIA BOND reason be that it has high After tax income of the amount of $4,500 compare to Noth Caroline Bond which has After tax income of the amount of $4,451.

8 0

3 years ago

Jim recently joined the Austin Barter Club, an organization that facilitates the exchange of services between its members. This

alexdok [17]

Solution :

a). In the context, Jim received $ 275 for the car repairing services form some member from the club. In this exchange of the services, an income is been received in amount of a value of the services received ( the gross income includes receipt of the services and also the money and goods). Therefore, Jim is being taxed on an amount of $275 for the car repair services.

b). The issue in this case is whether a "credit" represents the valuable right. As the right can be redeemed for the that is property worth of $150, then under the constructive receipt, Jim must recognize an income of $150.

c). Jim received an credit of $450 to be applied for the next year. If the credit can be redeemed or used for any future services, the taxpayer then can argue that the realization has not yet occurred. But, it has be included in Jim's gross income for the next year when his credit amount becomes the valuable right.

5 0

3 years ago

g ____________________________ the income tax would be counter-cyclical fiscal policy if the economy were ______________________

pychu [463]

Answer:

Raising; above potential income

Explanation:

The courter policy refers to the strategy of the government to take control over the recession by the use of fiscal measures and thus works to stabilize the economy and thus increase public taxes and reduces public expenditure during the recession.

5 0

3 years ago