Answer:
25%
Explanation:
The formula and the computation of the return on sales is shown below:
Return on sales = (Operating income) ÷ (Last year sales) × 100
where,
Operating income = $1,200,000
And, the last year sales = $4,800,000
So, the return on sales is
= ($1,200,000) ÷ ($4,800,000) × 100
= 25%
By dividing the operating income by the last year sales we can get the return on sales
Answer:
The weight of the risky stock is 67.95% while that of the risk free asset is 32.05%
Explanation:
The two stock portfolio is made up of a risk free asset and a risky asset. Thus the portfolio beta is the weighted average of the individual sstock's betas. The beta for the risk free asset is zero.
Using the portfolio beta equation, we can calculate the weight of each stock in the portfolio.
Portfolio beta = rA * beta of A + rB * beta of B
Let x be the weight of the risk free asset in the portfolio. The weight of risky asset will be 1-x.
1.06 = x * 0 + (1-x) * 1.56
1.06 = 1.56 - 1.56x
1.06 - 1.56 = -1.56x
-0.5 / -1.56 = x
x = 32.05%
Thus, the weight of the risk free asset be 1 - 0.3205 = 0.6795 or 67.95%
To strengthen requirements from basel ll on the bank’s minimum capitol ratios.
Not sure how specific this has to be but setting percentages of where you want your money would be a great way if that’s an option.
Answer:
Horizontal merger
Explanation:
A horizontal merger is a merger or centralization of business that takes place between companies operating in the same industry. Rivalry generally higher between companies that operate in the same area, implying that synergies and potential market share are far stronger for companies that merge
Therefore for the given case since one same industry wants to merge with the same kind of industry that shows the horizontal merger