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Sophie [7]
3 years ago
14

What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $47 per share and 200 shares of Stoc

k B that sell for $21 per share
Business
1 answer:
ycow [4]3 years ago
8 0

Based on the information given the portfolio weights for a portfolio are:

Stock A 0.6187; Stock B 0.3815.

First step

Shares          Price per share Total value

Stock A 145           $47                       6,815

Stock B 200          $21                       4,200

Total                                                     11,015

Second step

Portfolio weights

Stock A [ 6,815 / 11,015 ] 0.6187

Stock B [ 4,200 / 11,015 ] 0.3813

Inconclusion the portfolio weights for a portfolio are: Stock A 0.6187; Stock B 0.3815.

Learn more here:brainly.com/question/19579061

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lauryn’s doll co. had ebit last year of $45 million, which is net of a depreciation expense of $4.5 million. in addition, lauryn
dem82 [27]

If Lauryn's has a reported equity beta of 1.5, a debt-to-equity ratio of .3, and a tax rate of 21 percent.. The Free Cash Flow (FCF) of Lauryn's for the year is 20.45

FCF = (EBIT -Depreciation)× ( 1- Tax rate) + Depreciation - Capital expenditure - Working Capital investment = (45 -4.5 ) × ( 1 - 40%) + 4.5 - 4.25 -4.1 = 20.45

Beta Asset = Beta Equity /( 1 + (1-tax rate)×D/E) = 1.5/( 1 + ( 1-40%)× 0.3) = 1.2712

According To Capm WACC = Risk free rate + Betaasset × Market Risk Premium = 4% + 1.2712 × 12% = 19.2544%

Value of The firm = FCFF × ( 1+growth)/(Return - Growth) = 20.45 × 1.02/(19.2544% - 2%) = 120.89 million

  • Free cash flow (FCF) is the money a business makes after subtracting the cash it must spend to run its business and maintain its capital assets. Or to put it another way, free cash flow is the money that remains after a business pays its operating expenses (OpEx) and capital expenditures (CapEx).
  • A corporation may do whatever it wants with FCF, which is the money that is left over after paying for expenses like labor, rent, and taxes. A company's cash management will be aided by knowing how to compute and analyze free cash flow. Investors can improve their investment choices by using the FCF calculation to get insight into a company's financials.

Learn more about Free cash flow (FCF), here

brainly.com/question/16852008

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5 0
1 year ago
Carson Corporation stock sells for $35 per share, and you’ve decided to purchase as many shares as you possibly can. You have $5
snow_tiger [21]

Answer:

2041 shares

Explanation:

Maximum amount for investment = $ 50 000 / 70 % = $ 71428.571

maximum number of shares =  $ 71428.571 / $ 35 = 2040.812 approx 2041 shares

6 0
3 years ago
On January 1, Year 1, Chaco Company sold $300,000 of 10% twenty-year bonds. Interest is payable semiannually on June 30 and Dece
Andrei [34K]

Answer:

The amount of effective interest expense that chaco will record in the first six months is $14,375

Explanation:

interest payment that will be first made is on June 30, Year 1. Therefore, the outstanding balance used in the calculation is the issue price.

The interest expense is calculated by these formula

Interest expense = Effective semiannual interest rate × Outstanding balance

Interest expense = (8% ÷ 2) × $359,378 = $14,375

So the interest expense is gotten as %14,375

8 0
3 years ago
Read 2 more answers
We cannot provide any information about your refund. be sure to: verify your filing date; check with your tax preparer if you fi
stira [4]
Verify your filing date...
5 0
3 years ago
What does the investment component of GDP measure? a. spending on domestically produced goods by foreign buyers b. spending by h
viktelen [127]

Answer:

1) The correct answer is letter "C": spending on goods to be used in future production.

2) The correct answer is letter "B": is considered unsold inventory and counted as a part of investment in current GDP.

Explanation:

1) The Gross Domestic Product (GDP) considers four (4) components: <em>Consumption, Investment, Government, </em>and <em>Net Exports</em> (exports-imports). Investments refer to all goods that are purchased to produce other goods in the future. Final goods to be used or to replace others do not fall into this category.

2) The output of a company is computed within the GDP. Even if the output is not sold after production but it is recorded as part of an organization's inventory, it will be considered in the calculation of the GDP of the year when the production of the good took place.

6 0
3 years ago
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