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3 years ago

Which of the following statements is CORRECT?

1 answer:

8 0

Answer: C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future.

Explanation:

The beta coefficient is used by an economic entity to measure how volatile an individual stock is when such stock is being compared to the market's systematic risk.

Of the options given in the question, the correct answer is option C which states that "C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future"

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Peter's Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of preferred stoc

Nat2105 [25]

Answer:

the weighted average cost of capital is 9.22 %.

Explanation:

Weighted average cost of capital is the weighted return required by all providers of <u>permanent sources</u> of finance to the Company.

where,

ke = cost of equity

= 12.40 %

e/v = weight of equity

= ($22 × 105,000) ÷ ($22 × 105,000 + $45 × 25,000 + $1,500,000 × 98%)

= 0.4709

kp = cost of preference stock

= 8.00 %

p /v = weight of preference stock

= ($45 × 25,000) ÷ ($22 × 105,000 + $45 × 25,000 + $1,500,000 × 98%)

= 0.2294

kd = cost of debt

= Interest × ( 1 - tax rate)

= 7.80 % × (1 - 0.34)

= 5.148%

d/v = weight of debt

= ($1,500,000 × 98%) ÷ ($22 × 105,000 + $45 × 25,000 + $1,500,000 × 98%)

= 0.2997

Therefore,

WACC = 12.40 % × 0.4709 + 8.00 % × 0.2294 + 5.148% × 0.2997

= 9.22 %

4 0

3 years ago

What is The appearance of text called?

Nezavi [6.7K]

The appearance of text is the customization or formatting of a text. For example, the font size, the font, and the color.

Middle School

Basic Rank

6 0

2 years ago

Larson Company on July 15 sells merchandise on account to Stuart Co. for $1,000, terms 2/10, n/30. On July 20 Stuart Co. returns

pickupchik [31]

Answer:

b. $588

Explanation:

Terms 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

When Larson Company sold merchandise, the following entry was made to recording revenue (sales) and the receivable:

Debit Receivable Account $1,000

Credit Revenue $1,000

On July 20 Stuart Co. returns merchandise, the entry is made to record the decreasing of Receivable Account:

Debit Revenue $400

Credit Receivable Account $400

The balance Receivable Account of Stuart Co. = $1000-$400 = $600

On July 24, Stuart Co. makes the payment, the sales discount was:

$600 x 2% = $12

The amount of cash received = $600-$12=$588

The following entry is made:

Debit Cash: $588

Debit Sales discount: $12

Credit Receivable Account $600

7 0

3 years ago

____ reading will increase your focus and concentration, help you understand the reading, and prepare you to study.

Studentka2010 [4]

Answer:

Active.

Explanation:

Active reading can be defined as a process which typically involves an individual being focused on his or her study. It is aimed at acquiring knowledge and understanding of a particular subject or topic without distractions.

Hence, active reading will increase your focus and concentration, help you understand the reading, and prepare you to study.

5 0

3 years ago

2 Points

Serhud [2]

Answer:

The minimum wage

Explanation:

5 0

3 years ago