Answer:
Beta is 2.25
Explanation:
The return total return on the stock can be computed using the holding period return stated below:
=Pi-Po+D/Po
Pi is the expected price of the bond at year end which is $117
Po is the initial stock price of $100
D is the dividend expected at year end
holding period return=($117-$100+$1)/$100=18.00%
In Capital Asset Pricing Model,expected return formula is as follows:
expected return=risk free rate+beta*market risk premium
18.00%
=4.5%+Beta*6.0%
18.00%-4.5%=Beta*6.00%
13.500%=Beta *6.00%
Beta=13.500%
/6.00%
Beta=2.25
Answer:
False
Explanation:
The trial balance is prepared at the end of a counting period after all the accounts have been closed. The trial balance captures all the debits on one side and credits on the other. If the trial balance does not balance, it signifies errors in the general ledger. A balanced trial balance does not guarantee the absence of errors.
In preparing a trial balance, accountants usually follow the order of accounts as they follow each other as per the general ledger. It is not a requirement that either debits or credits come first.
Answer: Marginal cost under demand and supply theory. Answer is 80
Explanation: QD 100-4P, Marginal Cost =S4,QS =6P -20. So
the calculation goes thus = QS=6p-20
Inputing Marginal value of 4 equates 100-4(4)
100-16 = 84
QS=6(4)-4
24-20=4
profit maximisation =QD-QS
84-4=80
Answer:
The first option is correct
Explanation:
The number of stock repurchased need to first of all be determined.
The number of shares repurchased is the cash paid for repurchase of shares divided market price of $37.50
Number of shares repurchased=$187,500/$37.50=5,000 shares
number of shares outstanding after repurchase=30,000-5,000=25,000 shares
revised earnings per share=previous earnings per share*previous shares outstanding/the shares outstanding after repurchase
revised earnings per share=$1.22*30,000/25000=$1.464
P/E ratio=market price per share/revised earnings per share=$37.50/$1.464=25.61
Answer: D. The neighbor, because obtaining financing was a condition precedent.
Explanation:
Even though it wasn't listed in the written contract, there was the condition precedent that the contract would not be binding unless funding was obtained. Condition precedent is a condition that must happen for a contract to become enforceable.
Funding was not obtained so the contract cannot be enforced. The neighbor would therefore prevail so long as the owner admits that there was indeed a condition precedent.