Answer:
2.85
Explanation:
U.S. Treasury bills are a risk-free asset, and thus have a beta of zero. Since Stock A has a risk-level equivalent to that of the overall market, its beta is one. Therefore, the beta for Stock B can be found by:
The beta of Stock B is 2.85.
Answer:
Expense & revenue summary a/c (credit balance) = $3500
Explanation:
1. Dr Expense & revenue summary 52500
Cr Sales discount 1500
Cr Sales return & allowance 3000
Cr Depreciation expense 25000
Cr Salaries expense 23000
(Close expenses to expense & revenue summary a/c)
2. Dr Sales 56000
Cr Expense & revenue summary 56000
(Close sales to expense & revenue summary a/c)
3. Dr Expense & revenue summary a/c 3500
Cr Retained earning a/c 3500
(To close expense & revenue summary a/c)
4. Dr Retained earning 2000
Cr Expense & revenue summary 2000
(Close dividend to expense & revenue summary a/c)d
<span>The carbon dioxide (CO2) is the response variable. When analyzing statistics it is important to understand the difference between independent and dependent (response) variables. In this example, the oil is the independent because it is being changed, whereas the carbon is the response because it 'responds' to the oil and the amount of oil that is used.</span>
Answer:
A. 12.3%
B. 68%
Explanation:
a.Calculation to determine the required return for the project
Required return=(0.62/1.62*5.7%)+(1/1.62*13.2%)+2%
Required return=0.022+0.081+2%
Required return=0.124*100
Required return=12.3%
Therefore the required return for the project will be 12.3%
b. Calculation to determine the maximum cost the company would be willing to pay for this project
Maximum cost =6.3/(12.3%-3%)
Maximum cost =6.3/9.3%
Maximum cost =0.67.7*100
Maximum cost =67.7%
Maximum cost=68% (Approximately)
Therefore the maximum cost the company would be willing to pay for this project will be 68%
Answer:
c. $455.75
Explanation:
The computation of the quarterly payments is shown below:
= Balance amount ÷ PVIFA factor for 2.5% at 12 years
where,
Balance amount is
= $5,500 - $5,500 × 15%
= $5,500 - $825
= $4,675
And the PVIFA factor for 2.5% at 12 years is 10.2578
Refer to the PVIFA table
So, the quarterly payments is
= $4,675 ÷ 10.2578
= $455.75
In the case of quarterly payments, the rate is one fourth and time period would be 4 times
