The answer is <span>Kiichiro Toyoda</span>
Answer:
Expected return of portfolio = 12.3%
Beta of portfolio = 1.28
Explanation:
investment value in alpha = 100*10 = $1000
Total value of portfolio = 9000 + 1000 = $10000
The expected return and beta would be the weighted average.
Expected return of portfolio = 9000/10000 * 12% + 1000/10000 * 15%
Expected return of portfolio = 12.3%
Beta of portfolio = 9000/10000 * 1.20 + 1000/10000 * 2
Beta of portfolio = 1.28
The alternative combinations of goods and services that could be produced with all available resources and technology is the production possibilities.
Answer:
Correct option is C
Explanation:
Total E&P = $ 160000
Total voting Right Sold = 50/ (100+100) = 25%
Reduction of E& P due to exchange = Total E&P*Total voting Right Sold
Reduction of E& P due to exchange = 160000*25%
Reduction of E& P due to exchange = 40000
Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised
Reduction of E& P Lower of 40000 or (50*1000)
Reduction of E& P Lower of 40000 or 50000
Answer
C. A reduction of $40,000 in E&P because of the exchange.
Answer: After-tax cost of debt is 7.8%.
Explanation:
Given that,
coupon = 10% (outstanding bonds)
yield to maturity (YTM) = 12%
marginal tax rate = 35%
The after-tax cost of debt:
After-tax cost of debt = YTM (1 - Tax rate)
= 12% (1 - 0.35)
= 0.12 (0.65)
= 0.078
= 7.8%
YTM is used in the after-tax calculation because it represents the true pre-tax cost of debt to the issuer.
Therefore, the after-tax cost of debt is 7.8%
