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2 years ago

8

A stock has an expected return of 12.9 percent and a beta of 1.30, and the expected return on the market is 11.80 percent. What

must the risk-free rate be

1 answer:

bazaltina [42]2 years ago

8 0

Answer:

really good song: heat waves by glass animals. $\alpha \beta \pi \neq \leq \geq \alpha \pi \beta \alpha$

Explanation:

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Maggie and her family run a 600 acre farm in the Brazos Bottom. Her two crops are corn(x) and cotton(y). The farm’s revenue func

enot [183]

Answer:

Explanation:

the picture attached shows all the explanation needed

8 0

2 years ago

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent $ 36,100

salantis [7]

Answer:

1) Direct materials=$43070

2)Direct labor=$126300

3)Manufacture overhead=$117600

4)Total manufacturing cost=$286970

5)Prime cost=$169370

6)Conversion costs = 126300+117600= $243900

7)Total period cost= $418670

Explanation:

The company reported the following costs for 2018:

1) Direct materials

Thread 1,020

Premium quality cotton material 41,300

Buttons 750

Total= $43070

2)Direct labor

Wages paid to seamstresses 76,200

Wages paid to cutters 50,100

Total= $126300

3) Manufacture overhead

Factory rent $ 36,100

Utilities for factory 24,600

Cutting room supervisor's salary 31,300

Factory insurance 19,100

Depreciation on sewing machines 6,500

Total= $117600

Notice that marketing, Depreciation on salespersons' vehicles and president's salary are not part of manufacturing overhead.

4)Total manufacturing cost=$43070+126300+117600=$286970

5)Prime cost= direct material + direct labor=43070+126300=$169370

6)Conversion costs = Direct labor + Manufacturing overhead= 126300+117600= $243900

7)Total period cost= manufacturing cost + Company advertising + Depreciation on salespersons' vehicles + President’s salary

Total period cost= 286970 + 24200 + 30600 + 76900= $418670

7 0

3 years ago

Repair calls are handled by one repairman at a photocopy shop. Repair time, including travel time, is exponentially distributed,

wolverine [178]

Answer:

the average number of customers awaiting repairs = 0.30

the system utilization = 42

the amount of time that the repairman is not out on a call is = 4.64 hours

the probability of two or more customers in the system = 0.1764

Explanation:

Given that :

Repair time, including travel time = mean of 1.6 hours per call.

Requests for copier repairs = mean rate of 2.1 per eight-hour day

i.e mean rate R = 2.1/day

Time = 8 hours

thus; mean rate μ = 8 hours/ 1.6 hours = 5

(a)

Let the average number of customers awaiting repairs be $I_i$ :

$I_i = \dfrac{R^2}{\mu (\mu-R)}$

$I_i = \dfrac{2.1^2}{5 (5-2.1)}$

$I_i = \dfrac{4.41}{5 (2.9)}$

$I_i = \dfrac{4.41}{14.5}$

$\mathbf{I_i = 0.30}$

the average number of customers awaiting repairs = 0.30

(b) Determine system utilization.

The system utilization is determined as follows:

$\delta = \dfrac{R}{\mu}$

$\delta = \dfrac{2.1}{5}$

${\delta = 0.42}$

$\mathbf{\delta = 42}$

(c) The amount of time during an eight-hour day that the repairman is not out on a call is calculated as :

Percentage of Idle time = 1 - $\delta$

Percentage of Idle time = 1 - 0.42

Percentage of Idle time = 0.58

However during an 8 hour day; The amount of time that the repairman is not out on a call is = 0.58 × 8 = 4.64 hours

(d)

the probability of two or more customers in the system by assuming Poisson Distribution is:

P(N ≥ 2) = 1 - (P₀+ P₁)

where;

P₀ = 0.58

P₁ = 0.58 × 0.42 = 0.2436

P(N ≥ 2) = 1 - ( 0.58 + 0.2436)

P(N ≥ 2) = 1 - 0.8236

P(N ≥ 2) = 0.1764

Thus; the probability of two or more customers in the system is 0.1764

7 0

3 years ago

On January 1, a company issued 6%, 10-year bonds with a face amount of $60 million for $55,736,520 to yield 7%. Interest is paid

Olegator [25]

Answer:

Effective interest on June 30 on a 6% $60 million bond at 7% effective rate is $1,950,778

The interest is treated in the books of account thus:

Debit interest expense $1,950,778

Credit Bond account $1,950,778

Explanation:

The effective interest is computed using the below formula

Amount x Effective Rate (%) = Interest Expense

Amount=$55,736,520

Effective rate =7%/2 =3.5% semi-annually

Interest expense=$55,736,520*3.5%

Interest expense=$1,950,778

6 0

2 years ago

On January 1, Year 1, the Diamond Association issued bonds with a face value of $300,000, a stated rate of interest of 6 percent

lara31 [8.8K]

Answer:

A) $21,068

B) $1,525.24

C) $280,457.24

Explanation:

The amount of the discount = face value - market value = $300,000 - $278,932 = $21,068

Amount of interest recognized on December 31, year 1 = ($278,932 x 7%) - ($300,000 x 6%) = $19,525.24 - $18,000 = $1,525.24

Carrying value of the bond liability = $278,932 + $1,525.24 = $280,457.24

6 0

3 years ago