Answer:
4.5%
Explanation:
Stock R (Beta) = 1.5
Stock S (Beta) = 0.75
Expected rate of return on an average stock (Rm)= 10%
Risk free rate (Rf) = 4%
Required Return (Re) = Rf +(Rm-Rf) B
Required Return = 0.04 + (0.10-0.04) B
Required Return = 0.04 + 0.06B
Stock R = 0.04 + (0.06 * 1.50)
Stock R = 0.04 + 0.09
Stock R = 0.13
Stock R = 13%
Stock S = 0.04 + (0.06 * 0.75)
Stock S = 0.04 + 0.045
Stock S = 0.085
Stock S = 8.5%
Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.
= 13% - 8.5%
= 4.5%
Answer:
The correct answer is letter "D": must be long-lived and used by the company in its normal operations.
Explanation:
Fixed assets are tangible resources used by a corporation to produce profits. To qualify as a fixed asset, the item can not be consumed or sold in less than one year and be part of the daily operations of the business. Fixed assets are listed on the balance sheet of the company and are subject to depreciation.
Examples of fixed assets include <em>buildings, factories, leasehold improvements, computers, electronic hardware, furniture, automobiles, </em>and <em>construction equipment.</em>
Answer:
The correct answer is letter "E": None of the above.
Explanation:
Microeconomics deals with the economic choices of individuals and small companies. Jointly, these individual decisions influence the demand for and supply of goods and services in the economy. One of the subjects most discussed in microeconomics is the supply, demand and equilibrium model.
A)<em> Global warming research turns out to correctly predict the weather in the future. (No major impact in economy)</em>
B)<em> The dictator of a country builds ten new airports. (Macroeconomic)</em>
C)<em> A child buys a delicious chocolate bar. (No major impact in economy)</em>
D) The country of Montenegro adopts the Euro. (Macroeconomic)
<em>None of the statements above represents a microeconomic phenomenon.</em>
So tyler company gets new customer which purchase 20% of the production whcih company sales during business year with th 40% discount.
