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frozen [14]
3 years ago
13

The market risk premium is 9.0%, and the risk-free rate is 5.0%. If the expected return on a bond is 9.5%, what is its beta?

Business
1 answer:
leva [86]3 years ago
4 0

Answer:

The beta is 1

Explanation:

The computation of beta using the CAPM model is shown below:

As we know that

Expected rate of return = Risk free rate of return + Beta × Market risk premium

9.5% = 5% + Beta × 9.0%

9.5% - 5% = Beta × 9.0%

9.0% = Beta × 9.0%

So, the beta is 1

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

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Various financial data for Year 1 and Year 2 follow. Calculate the total productivity measure and the partial productivity measu
Ber [7]

Answer:

See below

Explanation:

With regards to the above, the formula for total productivity measure is

= Output Sales( Total output) / Total Input

Total productivity measurement for Last year.

Output sales = $200,000

Total input = Input labor + Raw materials + Energy + Capital + others

= $30,000 + $35,000 + $5,000 + $50,000 + $2,000

= $122,000

Therefore, total productivity measure

= $200,000/$122,000

= 1.64

Total productivity measurement for this year

Output sales= $220,000

Total input = Input labor + raw materials + energy + capital + others

= $40,000 + $45,000 + $6,000 + $50,000 + $3,000

= $144,000

Therefore, total productivity measure

= $220,000/$144,000

= 1.53

Partial productivity for last year

Output sales = $200,000

Input = Input labor + raw materials + capital

= $30,000 + $35,000 + $50,000

= $115,000

Partial productivity measure = $200,000/$115,000

= 1.74

Partial productivity measure for this year

Output sales = $220,000

Input = Input labor + raw materials + capital

= $40,000 + $45,000 + $50,000

= $135,000

Therefore, partial productivity measurement for last year

= $220,000/$135,000

= 1.63

The above measures indicates that there is a reduction in total productivity measures from last year to this year. Same applies to partial productivity measures for both years.

8 0
3 years ago
The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entri
zvonat [6]

Answer:

e. $104,000.

Explanation:

The computation of the ending capital balance is shown below:

As we know that

Ending capital balance = Opening capital balance + net income - withdrawn amount

where,

Opening capital balance = $64,000

Net income is

= Revenues - expenses

= $100,000 - $48,000

= $52,000

And, the withdrawn amount is $12,000

So, the ending capital balance i s

= $64,000 + $52,000 - $12,000

= $104,000

8 0
3 years ago
The Fashion Shoe Company operates a chain of women's shoe shops around the country. The shops carry many styles of shoes that ar
timofeeve [1]

The computation of the break-even point (in units) is given below:

Break-eventpoint = Fixed cost / contribution margin.

= Fixed cost / (selling price -  variable cost)

= $158,000/ ($20-%10)

= $158,000/ $10

= %15,800 units.

The break-even point (in units) for Shop 48 is 15,800 units. It can be computed by dividing the amount of fixed cost by the amount of per unit contribution margin. And the per unit contribution margin can be computed by deducting the variable cost per unit from the selling price per unit.

The break-even point is the point at which total costs equal total sales, and there is no loss or profit for a small business.

Learn more about the break-even point at

brainly.com/question/9212451

#SPJ4

4 0
1 year ago
Can the government tell its citizens what they can and cannot do as long as their actions do not impinge on the rights of other
densk [106]
If they are terrorist or had a very criminal background
5 0
3 years ago
Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financ
weqwewe [10]

Answer:

Plan A = 8.55%

Plan A =8.57%

Plan A =7.9%

Plan A =6.58%

Explanation:

The weighted average cost of capital can be computed by multiplying the Cost of capital (after tax) with the weights. The weighted average cost for four plans are as follows

WACC = Cost of capital x Weights

PLAN A

                                Weights      Cost of capital      WACC

Debt                         3.0 %                    15 %                0.45%    

Preferred stock       6.0                        10%                0.6%

Common equity      10.0                      75%               7.5%

WACC                                                                          8.55%

PLAN B

                                Weights      Cost of capital      WACC

Debt                         3.2 %                  25%                0.8%    

Preferred stock       6.2                      10%                0.62%

Common equity      11.0                      65%               7.15%

WACC                                                                         8.57%

PLAN C

                                Weights      Cost of capital      WACC

Debt                          4.0 %                   35 %                1.4%    

Preferred stock        6.7                        10%                0.67%

Common equity       10.6                      55%               5.83%

WACC                                                                          7.90%

PLAN D

                                Weights      Cost of capital      WACC

Debt                         7.0 %                   45 %                3.15%    

Preferred stock       7.6                       10%                 0.76%

Common equity       12.6                     45%                5.67%

WACC                                                                          6.58%

4 0
3 years ago
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