A stock has a beta of 1.45, the expected return on the market is 19 percent, and the risk-free rate is 5.00 percent. What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Answers

Answer 1

Answer: 25.30%

Explanation:

This can be calculated by the Capital Asset Pricing Model (CAPM):

= Risk free rate + Beta * (Market return - Risk free rate)

= 5% + 1.45 * (19% - 5%)

= 5% + 20.3

= 25.30%


Related Questions

What types of new products could be targeted at low-income customers in emerging economies?

Answers

The Answer:One of the key sectors to benefi from the higher economic growth in emerging markets is the consumer-products sector. This is because the rising middle class consumers in these markets yearn for consumer goods such as tooth paste, household cleaning products, health and beauty products, appliances, instant foods.

The biggest advantage of emerging market investments is the potential for high growth. Diversification. International investments can be a good diversifier for your investment portfoliobecause economic downturns in one country or region, including the U.S, can be offset by growth in another.

Hope it helpsʕ·ᴥ·ʔAll Correctʕ·ᴥ·ʔ

The question is about demand in a low income consumer emerging economies.

In an Emerging Economies various types of products can be sold but we are targeting low-income customers, for which we can have a limited types of products.

The products that can be sold in an emerging economy to low income customers are;

- Low priced foods, which may include instant noodles, cheap canned foods etc.

- Low priced beauty products which may include cheap makeup, and herbal skin products.

- Low priced clothes which may include cheap t-shirts and pants.

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To be useful, accounting information must have the fundamental qualitative characteristics of?

Answers

relevance and faithful representation

You receive a $15,000 signing bonus from your new employer and decide to invest it for 2 years. Your banker suggests two alternatives, which both require a commitment for the full 2 years. The first alternative will earn 8% per year for both years. The second alternative earns 6% for the first year and 10% for the second year. Interest compounds annually. Which would you choose? Justify your choice by the calculations.

Answers

Answer:

8% plus 8%

Explanation:

8% plus 8% will yield 16.64% total and the 6% and 10% yields 16.60% total

Nexis Corp. issues 1,000 shares of $15 par value common stock at $25 per share. When the transaction is recorded, credits are made to: Group of answer choices Common Stock $15,000 and Paid-in Capital in Excess of Par Value $10,000. Common Stock $25,000 and Retained Earnings $15,000. Common Stock $15,000 and Paid-in Capital in Excess of Stated Value $10,000. Common Stock $25,000.

Answers

Based on the information given the transaction that is recorded are: credits are made to: Common Stock, $15,000, and Paid-In Capital in Excess of Par, $10,000.

Nexis Corp. Journal entry

Debit Cash $25,000

($25×1,000 shares)

Credit Common Stock, $15,000

($15×1,000 shares)

Credit Paid-In Capital in Excess of Par, $10,000

[($25-$15)× 1,000 shares]

(To record common stock)

Inconclusion the transaction that is recorded are: credits are made to: Common Stock, $15,000, and Paid-In Capital in Excess of Par, $10,000.

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Your uncle is offering to sell you his T-shirt printing business for $1M. You think a multiple of 10X earnings (profit) is fair. His earnings are $69,000 per year. Should you buy it?

Answers

No because it is to expensive and the modern outfits are changing relatively quickly

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $31,000 and $500, respectively. During Year 2, Kincaid reported $72,500 of credit sales, wrote off $550 of receivables as uncollectible, and collected cash from receivables amounting to $74,550. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
What effect will recognizing the uncollectible accounts expense for Year 2 have on the elements of the financial statements?
a) Increase total assets and retained earnings
b) Decrease total assets and increase retained earnings
c) Decrease total assets and net income
d) Increase total assets and decrease net income

Answers

D Increase total assets and decrease net income

As a result of the uncollectible accounts being recognized in Year 2, there will be a c) Decrease in total assets and net income.

What would recognizing the uncollectible accounts do?

When uncollectible accounts are recognized, it means that the accounts receivables will reduce. This will therefore reduce total assets.

The uncollectible accounts will also be recognized as expenses and sent to the profit and loss account which would have the effect of reducing the net income.

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Which of the following financial statements is also called a profit and loss statement?

Answers

Answer:

Also known as the profit and loss statement or the statement of revenue and expense, the income statement primarily focuses on the company's revenues and expenses during a particular period.

Are the consequences of your decision something you can live with and feel proud of when other people find out? Why or why not?

Answers

At the end of the day people need to respects everyone’s decisions because it always has consequences depending on what they did , if someone is doing so good then they should feel proud it can be so many things it could be people that have mental issues and it stops them from doing some stuff but then they do something for them to feel good breaking the cycle , like there’s other who choose to do bad stuff now some people think is okay but it’s really not and consequences will always be there

Grand Thornton's print ad states, "If you have a passion for accounting and want to work with others who share that passion, you might be interested in the Grant Thornton accounting firm." This ad is an example of

Answers

The printed ads of Grand Thornton is an example of corporate image advertising.

Basically, a corporate image advertising is a form of advertisement done when the firm promotes itself in order to

portray positive perceptionincrease its brand awarenessappear relevant.

In conclusion, the printed ads of Grand Thornton is an example of corporate image advertising.

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Arial Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows:

Total Activity
Activity Cost Pool Total Cost Product A Product B Total
Activity 1 $22,000 400 100 500
Activity 2 $16,240 380 200 580
Activity 3 $14,600 500 250 750

The activity rate under the activity-based costing system for Activity 3 is closest to:

a. $70.45
b. $28.87
c. $19.47
d. $58.40
e. $32.5

Answers

Answer:

a

Explanation:

because it approaches to the total rates of the activity 3 it is the best avererage for that activity

The ________ method of setting an advertising budget typically overlooks how promotion affects sales.

Answers

Based on business management, the affordable method of setting an advertising budget typically overlooks how promotion affects sales.

What is the Affordable method in the Advertising budget?

The affordable method in the advertising budget is the cheap means of making an advertisement.

However, when making cheap or affordable advertisements, most people tend to overlook the effects of promotion efforts on sales.

Hence, in this case, it is concluded that the correct answer is "Affordable method."

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Which of the following defines a short-term goal?

A. tasks that you set to accomplish specific things in a short period of time

B. tasks that must be completed for a job performance evaluation

C. tasks that you must complete that require time and planning that usually take 12 months or more to complete

D. tasks that you think you need to accomplish in the future but need to start working on now

Answers

Answer:

I think its a

Not sure

Explanation:

.....

A 7-year, $1,000 par bond has an 8% annual coupon and is currently yielding 7.5%. The bond can be called in 3 years at a call price of $1,010. What is the bond yielding, assuming it will be called (known as the yield to call)?

Answers

The Yield to call is 7.30%

Par value of Bond (FV) = $1,000

Annual Coupon (A) = 8%*1,000 = $80

Years until maturity = 8

Current YTM = 7.5%

We need to calculate the Current Price of Bond (PV)

PV = 80 * (P/A, 0.075, 7) + 1000 * (P/F, 0.075, 7)

PV = $1,026.48

Call Price = $1,010

Call Period = 3 years

Yield to call = ytc

1026.48 = 80* (P/A, ytc, 3) + 1010 * (P/F, ytc, 3)

Using the trail and error method,

Yield to call = 7.30%

In conclusion, the Yield to call is 7.30%

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The language used in texting is acceptable in business writing. True or false

Answers

Answer: The answer is generally false.

The Fine Art Museum, a not-for-profit entity, allocated expenses 80% to programs and 20% to general and administrative.

a) During the current year the Museum received admissions fees in cash $500,000 from visitors.

b) Citizens of the local community are encouraged to participate in a program called “Friends of the Museum.” For a yearly contribution of $25 per family, a family is entitled to free admission to the Museum during the calendar year. At year-end, there were 10,000 members in the “Friends of the Museum.”

c) During the current year the Museum incurred salary expense of $250,000 of which $60,000 remains unpaid at year-end.

d) During the year the Museum incurred operating expenses of $400,000 of which $30,000 remains unpaid at year-end. Of the $400,000, $50,000 was used to buy supplies of which $20,000 remains on hand at year-end.

e) During the year the Museum received pledges of $200,000 for the acquisition of new art items, of which the Museum had collected $150,000 by year-end and expected to ultimately collect another $20,000.

f) During the year a citizen died and willed his wonderful collection of native art to the Museum to help new art items acquisition. The collection was later sold for $600,000.

Required: Prepare the necessary journal entries to record these transactions.

Answers

The preparation of the necessary journal entries for The Fine Art Museum is as follows:

Journal Entries:

a. Debit Cash $500,000

Credit Admissions Fees $500,000

To record the receipt of admissions fees in cash from visitors.

b. Debit Cash $250,000

Credit Admissions Fees $250,000

To record the receipt of special admissions fees for "Friends of the Museum."

c. Debit Salary Expense $250,000

Credit Salary Payable $60,000

Credit Cash $190,000

To record salary expense paid and payable.

d. Debit Operating Expenses $400,000

Credit Operating Expenses Payable $30,000

Credit Cash $370,000

To record operating expenses paid and payable.

Debit Supplies $50,000

Credit Operating Expenses $50,000

To transfer operating expenses to Supplies.

Debit Supplies Expense $30,000

Credit Supplies $30,000

To record supplies expense for the year.

e. Debit Pledges Receivable $200,000

Debit Cash $150,000

Credit Pledges Receivable $150,000

Credit Allowance for Uncollectible Pledges $30,000

To record pledges receivable and allowance for uncollectibles.

f. Debit Cash $600,000

Credit Sale of collections $600,000

To record the sale of wonderful collections from a will.

Data Analysis:

Allocation of Expenses:

Programs = 80%

General and Administrative = 20%

a. Cash $500,000 Admissions Fees $500,000

b. Cash $250,000 Admissions Fees $250,000 ($25 x 10,000)

c. Salary Expense $250,000 Salary Payable $60,000 Cash $190,000

d. Operating Expenses $400,000 Operating Expenses Payable $30,000 Cash $370,000

Supplies $50,000 Operating Expenses $50,000

Supplies Expense $30,000 Supplies $30,000

e. Pledges Receivable $200,000 Estimated Receivable Pledges $170,000

Uncollectible Pledges $30,000

Cash $150,000 Pledges Received $150,000

f. Cash $600,000 Sale of collections $600,000

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A group of 10 golfing buddies have the following annual incomes: $32,000, $12,000, $56,000, $120,000, $10,000, $38,000, $70,000, $16,000, $20,000, $24,000. The share of income received by the lowest quintile of this income distribution is

Answers

The lowest quintile received $22,000.

Data and Calculations:

The number of golfing buddies = 10

A. = $10,000

B.  = $12,000

C.  = $16,000

D.  = $20,000

E.  = $24,000

F.  = $32,000

G.  = $38,000

H.  = $56,000

I.  = $70,000

J.  = $120,000

Total - $398,000

The lowest, first, or bottom quintile is between 0 to 20%.

Thus, the lowest quintile received $22,000 ($10,000 + $12,000) from the income distribution.

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Jimmie is purchasing a home with a purchase price of $350,000. He has been approved for a loan with an 85% LTV. What is his down payment

Answers

Based on the information given the down payment is $52,500.

Using this formula

Down payment=(100%-Approved loan percentage)×Purchase price

Where:

Approved loan percentage=85%

Purchase price=$350,000

Let plug in the formula

Down payment=(100%-85%)×$350,000

Down payment=15%×$350,000

Down payment=$52,500

Inconclusion the down payment is $52,500.

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An approach to the SDLC that plans the project in advance and then progresses according to the plan is called what

Answers

Answer:

source-

One of the most common predictive models is the waterfall model. It assumes various phases in the SDLC that can occur sequentially, which implies that one phase leads into the next phase. In simple words, in waterfall model, all the phases take place one at a time and do not overlap one another.

in your own words-  

One of the foremost common prognostic models is that the falls model. It assumes varied phases within the SDLC which will occur consecutive, which suggests that one section leads into following section. In straightforward words, in falls model, all the phases occur one at a time and don't overlap each other.

Explanation:

source is where i got the imformation and the in your own words is it fully rewritten, sorry its a bit lengthy and hope this helps have a god day/night/noon! :)

As a manager, if you wanted to influence what employees do in situations lacking clear company rules or expectations, what should you do

Answers

As a manager if you want to influence what employees do in situations that lack clear company rules or expectations, you should create a strong culture.

Creating a strong culture is very important in the workplace. It is important because it helps to influence the discretionary behaviors that employees have in the work place.

It helps them to know what they should do in given situations where the the rules and the expectations are not clear.

This is very important because an organization may not have policies or rules for every given situation in the work place. The culture of the organization would be very useful in this case.

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Which of the following is not a characteristic of rent controls?

Lower expenditures on maintenance

Greater availability of apartments

Fewer newly built apartment buildings

Excess demand for apartments

Answers

The answer is: B - Greater availability of apartments.

The greater availability of apartments is not one of the tools that can characterize rent control.

The term rent control refers to the rules and regulations that are given by the policymakers. The rent control can reduce the quality and the rental housing units.

Hence the option B is correct.

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You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $42.50; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?

Answers

The cost of equity raised by selling new common stock is 11.33%.

Using this formula

re = D1/(P0 × (1 - F)) + g

Where:

re=Cost of equity=?

Dividend(D1)=$1.75

Stock price(P0)=$42.50

Growth rate(g)=7.00%

Floatation cost (F)=5.00%

Let plug in the formula

re =1.75/(42.50 × (1 - 0.05)) + 0.07

re=1.75/(42.50×0.95)+0.07

re=(1.75/40.375)+0.07

re=0.04334365+0.07

re=0.1133×100

re=11.33%

Inconclusion the cost of equity raised by selling new common stock is 11.33%.

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Presented below are selected transactions for Werley Company for 2021. Jan. 1 Received $9,000 scrap value on retirement of machinery that was purchased on January 1, 2011. The machine cost $90,000 on that date, and had a useful life of 10 years with no salvage value. April 30 Sold equipment for $34,000 that was purchased on January 1, 2018. The equipment cost $90,000, and had a useful life of 5 years with no salvage value. Dec. 31 Discarded a business truck that was purchased on April 1, 2017. The truck cost $27,000 and was depreciated on a 5-year useful life with a salvage value of $2,000. Journalize all entries required as a result of the above transactions. Werley Company uses the straight-line method of depreciation and has recorded depreciation through December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date Jan. 1 enter an account title to record depreciation expense enter a debit amount enter a credit amount enter an account title to record depreciation expense enter a debit amount enter a credit amount enter an account title to record depreciation expense enter a debit amount enter a credit amount enter an account title to record depreciation expense enter a debit amount enter a credit amount choose a transaction date April 30 enter an account title to record depreciation expense enter a debit amount enter a credit amount enter an account title to record depreciation expense enter a debit amount enter a credit amount (To record depreciation expense) choose a transaction date April 30 enter an account title to record sale of equipment Cash enter a debit amount 34000 enter a credit amount enter an account title to record sale of equipment Accumulated Depreciation-Equipment enter a debit amount

Answers

Based on the information given the appropriate journal entry to record the transactions are:

Werley Company Journal entries

1. Jan 2020

Debit Cash $ 9,000

Credit Accumulated depreciation - machinery $90,000

($90,000/10×10)

Credit Machinery $ 90,000

Credit Gain on retirement of assets $9,000

($9,000+$90,000-$90,000)

2. Apr-30

Debit Depreciation expense $6,000

($90,000/5×4/12)

Credit accumulated depreciation-Equipment $6,000

Debit Cash $34,000

Debit Accumulated depreciation $60,000

($90,000/5)×3 1/3) [(2018-2021)+(Jan 2021 to April 2021)]

Credit Equipment $90,000

Credit Gain on disposal of plant assets $4,000

[$34,000-($90,000-$60,000)]

3. Dec-30

Debit Depreciation expense $5,000

[($27,000-$2,000)/5]

Credit accumulated depreciation-Equipment $5,000

Debit Accumulated depreciation- Equipment $23,750

($5,000×4 3/4)  [(2017-2021)+(April 2021 to Dec 2021)]

Debit Loss on disposal $3,250

($27,000-$23,750)

Credit Equipment $27,000

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What is one major measure of economic growth?

Answers

Answer:

yo mama

Explanation:

yo mama's so ugly, she made a blind kid cry.

What is polycentricity?

O A. Independent elements that are separate by bound to each other

O B. Independent elements that are separate

OC. Independent elements that are only nominally separate

O D. The consolidation of independent elements

Answers

Answer:

Definition of polycentric

: having more than one center (as of development or control): such as. a : having several centromeres polycentric chromosomes.

Explanation:

Mark as Brainliest Answer

Help me please

With one worker, total production is 100. When a second worker is added, total product

increases to 300. The marginal product of the second worker is ….???
100.

200.

400.

300.

Answers

Total production is 100

let the product of second worker be x

then 100+x = 300

x = 200

The marginal product of the second worker is 200

HELP

When a consumer is making more money, the demand curve shifts to the right. Why is this?

Answers

The demand curve shifts to the right because the consumer is able to afford larger quantities of the product. I believe the answer is C.

Which of the following is not a product design objective? Make the design easy to track for cost accounting purposes. Design a quality product. Design a product that meets customer requirements. Minimize production costs.

Answers

Amongst the options provided in the question, "Make the design easy to track for cost accounting purposes" only is not a product design objective.

Product Design

It is a process that requires cross-functional and knowledge-intensive work, which has become more demanding in today's competitive world.

It is set as one of the key strategies firms need to succeed in the market. These firms develop unique products using this process, as it provides them with the opportunity to set premium prices due to the uniqueness of the product.

Product Design Objective

For this process to succeed, the objective of the product design is, therefore, to produce goods or services with high quality, keeping the prices of the materials and the methods required to produce them at an acceptably low cost. Finally, the product must be competitive in the market in terms of its price, quality, design, and functionality. Thus making it meet the customer needs/wants.

Hence, the only point "Make the design easy to track for cost accounting purposes" is not a product design objective.

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Suppose the economy is in long-run equilibrium. If there is a sharp increase in the minimum wage as well as an increase in taxes, then in the short run, real GDP will:____.
a. rise and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.
b. fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.
c. rise and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower.
d. fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.

Answers

Suppose the economy is in the long run equilibrium. If there is a sharp increase in the minimum wage as well as an increase in taxes then in the short run, real GDP will

fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower.

Given that this economy is in the long run equilibrium. Given a sharp increase in minimum wage and taxes, then real GDP will decrease in the short run as well as the price level.

In the long run it may stay the same. But the Real GDP will definitely be lower.

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Why are developing countries experiensing rapid population growth while developed countries are growing slowly or not at all?​

Answers

Answer:

Population growth in developing countries will be greater due to lack of education for girls and women, and the lack of information and access to birth control.

Carry learning!

Study hard!

Brainliest please!

Thank you

Help help help help

Answers

Answer:

B

Explanation:

The answer is B because the short-run Phillips curve is unemployment. When unemployment happens, it is decreasing and not increasing.

Other Questions
Assume that transportation costs are especially high for Widgets in the two-country, two-product Ricardian model, and Country A enjoys a comparative advantage in Widgets, then A) country B must also enjoy a comparative advantage in Widgets. B) country B may end up exporting Widgets. C) country A may switch to having a comparative advantage in the other good. D) country A will still export Widgets. E) trade may be impossible between the two countries. Use the figure to classify the obtuse angle Which example reflects the proper way to capitalize the closing of a letter?A.Yours Very Truly,B.yours very truly,C.Yours very truly,D.Yours Very truly, please help me I can't understand when where they divided into 77units? Match the following: 1. the continuous movement of water between the Earth's surface and the atmosphere lead 2. pollutes water sources by dumping wastes in rivers, streams, and oceans putrefaction 3. the leading cause of water contamination in countries without water treatment plants stimulants 4. a source of water pollution caused by the overuse of pesticides and fertilizers humoral immunity 5. caused by an overabundance of organic matter in water supplies agriculture 6. the decomposition of organic matter by microorganisms hydrological cycle 7. a chemical pollutant that can enter the water cycle through agricultural or domestic use bacterial infection 8. can cause the contamination of underground water supplies if poured on the ground industry 9. a metal that leaks into water supplies via the soil or aging water systems eutrophication 10. depends upon the production of disease-specific antibodies to destroy harmful bacteria sewage 11. increases the activity of the central nervous system petroleum 12. reduces the activity of the central nervous system pesticides 13. caused by the reproduction of a small infectious agent, which produces poisons that destroy cells depressants The graph below shows the consumption of fish and different kinds of meat in a European country between 1979 and 2004. Give an example of when you would encounter different types of fractions in thereal world. Fifteen-year-old Roxana wants to skip school today because she is having a bad hair day and is convinced that everybody will notice and think badly of her. Which aspect of adolescent egocentrism is Roxana experiencing?A) the personal fable.B) the imaginary audience.C) the fight-or-flight response.D) the top-dog phenomenon. HELP ME PLS ITS PYTHAGOREAN THEOREM Identify the four key concepts of Darwin's theory of natural selection. (2 marks)Explain how Lamarck's theory was different and why it got rejected over time. (2 marks) Use the quotation and your knowledge of social studies to answer the question.Equality of rights under the law shall not be denied or abridged by the United States or by any State on account of sex. proposed Equal Rights Amendment, passed by Congress in 1972If this amendment had been ratified, which would it have done?forbidden any form of sex discrimination by governmentforbidden certain forms of sex discriminationeliminated mandatory retirementgiven women the right to vote write a poem about mankind how do i say " i start cleaning at 4 p.m.. my friend chloe takes a nap after school. i prefer to change my clothes after school. i play volleyball with my team at 5 p.m.. i eat dinner with my family at 6 p.m..". in spanish , please help for any Integer 'a',a 0 is _______give me answer 2 hundreds equal how many tens? Lets see if ya'll know the answer cause i do Use the remainder term to find the minimum order of the Taylor polynomial, centered at 0, that is required to approximate the following quantity with an absolute error no greater than 10^-2.1.06.n>= __________ P(x) = x^4 2x^3 3x^2 + 4 What is the remainder when P(x) is divided by (x 3)? If the government changed the per-unit tax from $5.00 to $2.50, then the price paid by buyers would be $7.50, the price received by sellers would be $5, and the quantity sold in the market would be 1.5 units. Compared to the original tax rate, this lower tax rate would Graph the circle defined by the equation (x + 7)2 + (y 5)2 = 4.