Social responsibility refers to ____

Consider the single factor APT. Portfolio A has a beta of 0.5 and an expected return of 12%. Portfolio B has a beta of 0.4 and a

Jobisdone [24]

Answer and Explanation:

Given:

For portfolio A

Expected return of 12%

beta = 0.5

Risk premium for A = ?

For portfolio B

Expected return of 13%

beta = 0.4

Risk premium for B = ?

Risk-free rate of return = 5%

Computation:

For portfolio A

12% = 5% + (0.5 × risk premium for A)

risk premium for A = 14%

For portfolio B

13% = 5% + (0.4 × risk premium for B)

risk premium for B = 20%

short position "A"

Long position "B"

8 0

4 years ago

The marginal prospensity is to consume 0.75, marginal prospensity to invest is 0.3 and the marginal prospensity to import is 0.2

7nadin3 [17]

Answer:

1.33

Explanation:

The size of the multiplier is the one which grounded on the marginal decisions of the household for spend, that is called as the MPC (stands for Marginal Propensity to consume), also referred to as the marginal propensity to save (MPS).

The formula to compute the size of the multiplier is as follows:

Size of multiplier = 1 / MPS

where

MPS is 0.75

So,

Size of multiplier = 1 / 0.75

= 1.33

5 0

3 years ago

Dietterich Electronics wants its shareholders to earn a return of 15% on their investment in the company. At what price would t

Tema [17]

Answer:

(a) price stock need = $1.667

(b) price stock need = $6.667

(c) price stock need = $11.667

(d) price stock need = $16.667

Explanation:

given data

return = 15% = 0.15

to find out

what price would the stock need to be priced today

a. $0.25 constant annual dividend forever?

b. $1.00 constant annual dividend forever?

c. $1.75 constant annual dividend forever?

d. $2.50 constant annual dividend forever ?

solution

(a) price stock need = $\frac{0.25}{0.15}$

(a) price stock need = $1.667

(b) price stock need = $\frac{1.00}{0.15}$

(b) price stock need = $6.667

(c) price stock need = $\frac{1.75}{0.15}$

(c) price stock need = $11.667

(d) price stock need = $\frac{2.50}{0.15}$

(d) price stock need = $16.667

3 0

3 years ago

Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans

Aleksandr-060686 [28]

Answer:

2018 $21,600

2019 $4,320

Explanation:

We need to work out average cost of borrowing as follows;

$2,000,000*8%+$8,000,000*4%=$480,000

$480,000/(2,000,000+8,000,000)=4.8%

July1, 2018 $400,000*4.8%*6/12=$9,600

Sept 30,2018 $600,000*4.8%*3/12=$7,200

Nov. 30, 2018 $600,000*4.8%* 2/12=$4,800

Total interest to be capitalized in December 31, 2018 =$21,600

Total interest to be capitalized in December 31 2018$540,000*4.8%*2/12=$4,320

6 0

3 years ago

Using the legend provided, classify each of the following statements: Legend A = Tax avoidance E = Tax evasion N = Neither

11111nata11111 [884]

Answer:

A, A, E, E, E.

Explanation:

Tax evasion is an illegal activity in which a person or entity deliberately avoids paying a true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties.

Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law. Tax sheltering is very similar, although unlike tax avoidance tax sheltering is not necessarily legal.

Sue writes a $707 check for a charitable contribution on December 28, 2013, but does not mail the check to the charitable organization until January 10, 2014. She takes a deduction in 2013. A - Tax Evasion

Sam decides not to report interest income from a bank because the amount is only $19.75. A - Tax Evasion

Harry pays property taxes on his home in December 2013 rather than waiting until February 2014. - E - Tax Avoidance.

Variet switches her investments from taxable corporate bonds to tax-exempt municipal bonds. E - Tax Avoidance.

Mel encourages his mother to save most of her Social Security benefits so that he will be able to claim her as a dependent. E - Tax Avoidance.

8 0

3 years ago

Social responsibility refers to _____ towards society​

Social responsibility refers to _____ towards society