Answer:
beta of stock B = 1.33
Explanation:
the beta of treasury bills is 0
the beta of stock A = 1.46
the beta of stock B = ?
the portfolio contains equal amounts of each investment and its overall beta is 0.93
0.93 = (0 x 1/3) + (1.46 x 1/3) + (B x 1/3)
0.93 = 0 + 0.4867 + 0.333B
0.93 = 0.4867 + 0.333B
0.4433 = 0.333B
B = 0.4433 / 0.333 = 1.33
Based on the information given for her to complete her letter, she must deposit D) $12,000.
<h3>
Deposit:</h3>
Using this formula
Deposited amount=Amount invested-Original investment
Where:
Amount invested=$25,000
Original investment=$13,000
Let plug in the formula
Deposited amount=$25,000-$13,000
Deposited amount=$12,000
Inconclusion for her to complete her letter, she must deposit D) $12,000.
Learn more deposit here:brainly.com/question/1752098
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A lottery ticket states that you will receive $250 every year for the next ten years.
A) i=0.06 ordinary annuity
PV= FV/(1+i)^n
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {250*[(1.06^10)-1]}/0.06= $3,295.20
PV= 3,295.20/1.06^10=1,840.02
B) i=0.06 annuity due (beginning of the year)
FV= 3,295.20 + [(250*1.06^10)-1]= $3492.91
PV= 3492.91/1.06^10= $1,950.42
C) The interest gets compounded for one more period in an annuity due.
Answer:
a. Steve will not have a capital gain in Year 1 for tax purposes.
Explanation:
Since Steve (the owner of Barb) sold his stocks to an ESOP (employee stock ownership plan), then he will be able to avoid capital gains taxes at least for the first year. ESOPs are qualified retirement plans and when they invest in stocks of the same sponsoring company, the transaction is not taxed if the seller reinvests (buys other stocks). As long as ESOP holds at least 30% of the company's stocks, then Steve can defer his taxes.
Answer:
$20,000
Explanation:
Calculation for the liability that should be reported for vacation pay
Using this formula
Liability=Vacation weeks*Compensation averaged per week for Year 1
Let plug in the formula
Liability=20 weeks × $1,000 per week
Liability = $20,000
Therefore the amount of liability that should be reported for vacation pay will be $20,000
