Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.8. If the stock market increases in value by 5 percent, what is the expected increase in value for the World-Wide Productions stock?

Answers

Answer 1

Answer:

Stock increase = 14%

Explanation:

Market increase = 5%

Stock Beta = 2.8

Stock increase = Stock beta * Market Increase

Stock increase = 2.8*5%

Stock increase = 0.14

Stock increase = 14%


Related Questions

Gabriella, a single taxpayer, has wage income of $160,000. In addition, she has $7,000 in long-term capital losses, $1,000 in long-term capital gains, $3,000 in short-term capital gains, and $1,000 in short-term losses. What is Gabriella's AGI for 2017?a. $157,000.
b. $160,000.
c. $156,000.
d. $161,000.

Answers

Answer:

c. $156,000

Explanation:

Adjusted gross income = Wage income + Long-term capital gains + Short-term capital gains - Long-term capital losses - Short-term losses

Adjusted gross income = $160,000 + $1,000 + $3,000 - $7,000 - $1,000

Adjusted gross income = $156,000

Thus, Gabriella's AGI for 2017 is $156,000

Which of the following best explains how the rise of machinery created an unfriendly relationship between industrialists and their employees?
A. The industrialist earned his income from the work of others.
B. There was a lack of unions.
C. The employees were underpaid.

Answers

Answer:

C

Explanation:

In as much as these are the only options given, then there has to be an answer there. Even though I fancy there being another answer.

But I'd say, the closest to the reason from the aforelisted is that the employees were underpaid. Since the advent of machineries, truth is that there wasn't going to be need for employees. This is because machines tend to have a much better output, better efficiency and won't need to be paid monthly in wages.

Since there isn't need for employees again, the industrialist tend to underpay the employees because they don't see their useful in the first instance

The rise of the use of machine is on the increase. The best explanation as to how the rise of machinery created an unfriendly relationship between industrialists and their employees is the employees were underpaid.

The industrialists did treat their workers bad.  They make sure to keep wages as low as ever. Their attitude towards their employee was like if employee did not like the pay, the long hours and other working conditions he could quit and go to other places.

They were super-rich, living in great homes, living life lavishly abut their employees were paid little sum as if they do not have any choice.

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If the net present value of a project is positive (non-zero), then the project's:________.a) PI will be less than 1. b) internal rate of return will exceed its required rate of return. c) costs exceed its benefits. d) discounted payback period will exceed the life of the project. e) payback period must equal the life of the project.

Answers

Answer:

b) internal rate of return will exceed its required rate of return.

Explanation:

The internal rate of return is the discount rate at which the NPV = 0. If the NPV is positive when calculated using the project's discount rate, then the IRR is going to be higher than the discount rate.

Option A is wrong because the profitability index (PI) of a project is calculated by dividing the present value of its cash flows by its cost. If the NPV is positive, it means that the present value of its cash flows will be greater than the costs, so the pI will be more than 1.

Option C is wrong because if the costs exceed the benefits, then the NPV will be negative.

Option D is wrong because that would mean that the NPV is negative.  

Option E is something made up that doesn't make any sense.

Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR?


WACC: 12.25%

Cash flows -

Year 0: - $850
Year 1: $300
Year 2: $320
Year 3: $340
Year 4: $360

Answers

Answer:

MIRR = 17%

Explanation:

The computation of the MIRR of a project is shown below:

Year Cash flows ( in $)

0       -850

1        300

2       320

3       340

4       360

 

WACC 12.25%

MIRR 17%

We simply applied the MIRR over the excel

We simply applied the attached formula so that the correct percentage could come

And, the same is to be considered

Naomi complains to Andy that he "hasn’t been here – until now, when we’re in crisis mode." Based on this statement, Andy is most likely viewed as a(n) ________ leader by Naomi.

a. passive management by exception
b. active management by exception
c. transformational
d. laissez-faire
e. contingent reward

Answers

Answer: a. passive management by exception

Explanation:

Even though this might sound like it is laissez-faire leadership, it is not.

This is a passive management by exception leadership style and a leader that does this is usually inactive and absent from their duties unless mistakes are being made or crisis are popping up that need to be fixed. They will then spring into action to mitigate the adverse effects of their absence.

This is different from laissez-faire leadership because in laissez-faire, the leader is simply absent even during crisis.

Based on the given statement, it is the passive management by exception that leader by Naomi.

The following information should be considered related to the  passive management by exception :

In this, the leader is not active also it is absent from the duties until the mistakes should be made or the crisis should be popping up the requirement to be fixed. After this, there is the transformation of the spring into action for decreasing the opposite impacts.

Therefore we can conclude that the correct option is a.

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What is the equity beta for a firm with asset beta equal to 0.9, and D/E ratio of 0.4, and tax rate equal to 35%?

Answers

Answer:

the equity beta of the firm is 1.134

Explanation:

The computation of the equity beta is shown below:

Equity beta is

= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]

= 0.9 × [1 + (1 - 0.35) × 0.4]

= 0 9 × 1.26

= 1.134

Hence, the equity beta of the firm is 1.134

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Investing activities do not include the:

a.Purchase of plant assets.

b.Loaning of money in exchange for notes receivable.

c.Issuance of common stock.

d.Sale of plant assets.

e.Sale of short-term investments other than cash equivalents.

Answers

Answer:

c.Issuance of common stock.

Explanation:

Investing activities lead to an increase in business cash flows.  Investing involves spending money with the expectation of making higher returns.

Some investing activities include

1. Purchase or acquisition of assets to be used in the production process.

2. Sale of business assets

3. Acquisition or sale of other business

Issuing of common stocks is not considered an investment option. Common shares are issued when companies need to raise additional capital.  Issuance of common shares is a financing activity.

A stock has a beta of 1.2. Suppose the expected market risk premium (EMRP) is 6% and the risk-free rate is 1%. What is this stock's expected return according to the CAPM

Answers

Answer:

7%

CAPM = 1% + [6% - 1%](1.2) = 1% + 6% = 7%

Alison was just hired around the Grand Stores. She soon learned that all new hires in the company are required to go through mandatory health and drug testing. She consulted her superiors and found that this was not a breach of her privacy right. Which reason for such testing would NOT qualify as a breach of Alisons privacy rights?

A. Pre-employment condition
B. Vacation allotment
C. Fitness for duty
D. Personality assessment

Answers

Answer:

A. Pre-employment condition

Explanation:

The answer is A. because if the testing is a requirement for getting the job then you know beforehand. You're aware of this requirement before they employ you so it's not breaching your privacy rights.

Answer:

a

Explanation:

The company can allow whoever they want into the company and it is their choice to test their employees for drugs.

The combination of debt financing and equity financing that maximizes a firm's value is known as its:

Answers

Answer:

optimal capital structure

Explanation:

optimal capital structure can be regarded as a combination of

of debt and equity financing which brings about maximization of amarket value in a firm. It should be noted that optimal capital structure is the combination of debt financing and equity financing that maximizes a firm's value.

If the current price of a stock is P=40, its β=1.25, and the expected rate of return of the market portfolio is r¯M=0.13, what does CAPM predict for the price of the stock in a year? Use rf=0.05 as the risk-free rate.

Answers

Answer:

im sorry

Explanation:

Find the equivalent taxable yield of the municipal bond for tax brackets of zero, 10%, 20%, and 30%, if it offers a yield of 4.50%

Answers

Answer and Explanation:

The computation of the equivalent taxable yield is shown below:

For zero = 4.50%

For 10% =  4.50 ÷ 0.90 = 5%

For 20% =  4.50 ÷ 0.80 = 5.625%

For 30% =  4.50 ÷ 0.70 = 6.43%

For 10%, for 20% and for 30% it would reduced the tax brackets by the same

like

for 10%

= 1 - 0.10

= 0.90

The Same applied for other ones

Therefore the above should be the answer

Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B 0 –$ 64,000 –$ 109,000 1 26,500 28,500 2 34,400 33,500 3 28,500 25,500 4 14,500 231,000 What is the payback period for each project?

Answers

Answer:

Stenson, Inc.

The payback period for each project is:

Project A = 3 years

Project B = 4 years

Explanation:

a) Data and Calculations:

Year            Cash Flow A        Cash Flow B

0                  –$ 64,000           –$ 109,000

1                        26,500                  28,500

2                       34,400                   33,500

3                       28,500                  25,500

4                        14,500                 231,000

Total inflow  $103,900               $318,500

b) The payback period is the time when the cash outflow is recouped.  For project A, the payback period occurs in year 3.  For project B, the payback period occurs in year 4.  Based on the company's cutoff of three years, Project B may not be accepted even with its large cash inflow in year 4.  Therefore, the best decision will be to discount the cash inflows with a suitable rate of interest.  This will help Stenson, Inc. to decide between accepting Project A or Project B.

When evaluating an investment, the MNC should consider the ____________ cash flows generated by the project.

a. total
b. variable
c. incremental
d. fixed

Answers

Answer: c. Incremental

Explanation:

Simply put incremental cashflow is the additional cashflow that accrues to a company when it takes on a new project. The Multinational company should therefore consider this when they are accepting a project.

If the new project has a positive incremental cashflow, it will add to the cashflows of the company and so should be initiated as opposed to those with negative incremental cashflows.

pencer Co. has a $300 petty cash fund. At the end of the first month the accumulated receipts represent 553 for delivery expenses, $167 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $58. The journal entry to record the reimbursement of the account includes a:_________.a) Debit to Petty Cash for $300. b) Debit to Cash Over and Short for $58 c) Credit to Cash for $242 d) Credit to Inventory for $167e) Credit to Cash Over and Short for $58.

Answers

Answer:

c) Credit to Cash for $242

Explanation:

Petty cash, beginning = $300

Delivery expense = $53

Merchandise inventory = $167

Miscellaneous expense = $22

Petty cash, Ending = $58

The journal to record the reimbursement of the accounts will be:

Event    Account Title and Explanation   Debit    Credit

1           Delivery expense                            $53  

           Merchandise inventory                   $167  

           Miscellaneous expense                  $22

                    Cash                                                   $242

In a monopolistically competitive industry, price:______

a. is most likely a bit higher than the competitive market price because of the cost of variety.
b. will exceed the monopoly price due to the destructiveness of competitive forces.
c. will be lower than the competitive price due to cost savings.
d. is contingent on the behavior of other firms because they are mutually interdependent.

Answers

Answer:

a

Explanation:

In a monopolistically competitive industry, price is most likely a bit higher than the competitive market price because of the cost of variety.

In a monopolistically competitive market, firms tend to set their prices to be higher than those of the marginal cost. This invariably translates to the fact that market is never really able to be productively efficient.

Firms in monopolistically competitive markets tend to wield the same power, since they're all price makers, they have a low degree of market power.

The PE ratio: Assuming Net Income for the year is $250,000, what is the net cash flows from operating activities given the following information: Increase in Salaries Payable $ 19,500 Depreciation Expense $ 9,500 Increase in Prepaid Rent $ 27,500 Loss on sale of asset $ 1,250 Increase in Accounts Payable $ 29,500 Increase in Inventory $ 93,000 Multiple Choice

Answers

Answer:

Net operating cash flow = $189,250

Explanation:

Particulars                                    Amount$

Net income                                    250,000

Add:depreciation expense           9,500

Add:loss on sale of asset              1,250

Add:increase in salary payable    19,500

Less:increase in prepaid rent       (27,500)

Add:increase in AP                        29,500

Less:increase in inventory            (93,000)

Net operating cash flow              $189,250

Costs that can be traced to a cost object in a cost-effective way are called direct costs.
a) true
b) false

Answers

Answer:

a) true

Explanation:

Costs that can be traced to a cost object in a cost-effective way are called direct costs. Sometimes they can literally be seen on the cost object by observation. For example the wood on the table.

A US Multi National Corporation has a contract for a relatively predictable long-term inflow of Japanese yen. The firm decides to hedge the yen exposure by finding a supplier in Japan and paying for these imports in yen. This hedging strategy is known as ________.

Answers

Answer: a natural hedge

Explanation:

Natural hedge is simply a strategy that is used by a company in order to reduce risk and this is done through the investment in the assets that their performance is not positively correlated.

Such companies typically makes revenue in the currency of another country. Since the firm decides to hedge the yen exposure by finding a supplier in Japan and paying for these imports in yen, this hedging strategy is known as natural hedge.

A stock has the following returns over three consecutive years: 85%, 58%, and 128%. What is the arithmetic average?

Answers

Answer:

The stock's arithmetic average is:

90.33%.

Explanation:

a) Data and Calculations:

Returns over three consecutive years:

Year 1 =   85%

Year 2 =  58%

Year 3 = 128%

Total returns = 271%

Average = Total returns divided by number of years

= 271/3

= 90.333

=90.33%

b) The arithmetic average is the total returns divided by the number of years involved.  This implies that we find the average or the mean by adding up some pieces of data together and dividing by the number of the pieces of data.

If the European subsidiary of a U.S. firm has net exposed assets of 750,000 Euros, and the euro drops in value from $1.30/euro to $1.20/ Euro the U.S. firm has a translation:__________

a. gain of $75,000
b. loss of $75,000
c. gain of $65,000
d. loss of 546,923

Answers

The correct answer is:

b. loss of $75,000

scientific management.

management by objectives (MBO).

the program evaluation and review technique (PERT).

programmed management.

Answers

Answer:

im bored soo hi

Explanation:

Which type of supply chain collaboration includes collaborative processes across the supply chain using a set of processes and technology models including a joint business plan, sales forecasting, order planning and forecasting, order generation, and order fulfillment?

Answers

Answer:

Collaborative Planning, Forecasting and Replenishment (CPFR)

Explanation:

Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.

The fundamental principle of supply chain management is basically a collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.

Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.

Collaborative Planning, Forecasting and Replenishment (CPFR) is a type of supply chain collaboration which includes collaborative processes across the supply chain using a set of processes and technology models including a joint business plan, sales forecasting, order planning and forecasting, order generation, and order fulfillment.

Select the correct answer.
Restaurant supply companies handle deliveries of foods and goods to restaurants.
ОА.
True
OB.
False

Answers

Answer:

True

Explanation:

I took the test and this is the right answer. :-)

Knowledge Check 01 An unfavorable variance of $5,000 in cost of goods sold is determined by comparing the actual results (10,000 units) and the flexible budget (10,000 units). What type of variance is described?a. Activity variance b. Spending variance c. Revenue variance

Answers

Answer:

The correct option is b. Spending variance.

Explanation:

Spending variance can be described as the difference between the actual cost and budgeted cost at the actual activity level.

Since cost of goods sold (COGS) is the direct costs incurred to produce the goods that is sold by a firm, it therefore implies that the amount of variance in cost of goods sold can be determined by comparing the actual results and the flexible budget at the actual activity level or actual units.

Based on the explanation above, the correct option is b. Spending variance. That is, Spending variance is an unfavorable variance of $5,000 in cost of goods sold is determined by comparing the actual results (10,000 units) and the flexible budget (10,000 units).

With a planned volume of 15,000 units, the master budget includes variable costs of $450,000 and fixed costs of $350,000. If the actual volume is 12,000 units, the total costs under flexible budget should be:__________a. $490,000.b. $560,000.c. $650,000.d. $710,000.

Answers

Answer:

Total cost= $710,000

Explanation:

Giving the following information:

15,00 units:

Fixed costs= $350,000

Total variable cost= $450,000

First, we need to calculate the unitary variable cost:

Unitary variable cost= 450,000 / 15,000

Unitary variable cost= $30

Now, the total cost for 12,000 units:

Total cost= 350,000 + 30*12,000

Total cost= $710,000

Magee Company's stock has a beta of 1.20, the risk-free rate is 4.50%, and the market risk premium is 5.00%. What is Magee's required return

Answers

Answer:

10.50%

Explanation:

Calculation for Magee's required return

Using this formula

Required return=Risk-free rate+Beta(Market risk premium)

Let plug in the formula

Required return= 4.50% + 1.20(5.00%) .

Required return=4.50%+6%

Required return= 10.50%

Therefore Magee's required return will beb10.50%

(Cost of debt) Sincere Stationery Corporation needs to raise $500,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond with a 14 percent annual coupon rate and a 10-year maturity. The investors require a 9 percent rate of return. a. Compute the market value of the bonds. b. What will the net price be if flotation costs are 10.5 percent of the market price?

Answers

Answer:

a. $1,320.88

b.  $1,182.19

Explanation:

The computation is shown below:

a. For market value of the bond

Given that

Rate = 9%

NPER = 10

PMT = $1,000 * 14% = $140

FV = $1,000

The formula is shown below:

= -PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $1,320.88 i.e. equivalent to the market value of the bonds

b. Now the net price be

= Market price × (1 - flotation cost)

= $1,320.88 × (1 - 0.105)

= $1,182.19

Colleges often rely heavily on raising money for an "annual fund" to support operations. Alumni are typically solicited for donations to the annual fund. Studies suggest that the graduate’s annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, positive, linear relationship between these variables. In the studies described:

Answers

Answer: size of alum's donation to the annual fund is the response variable

Explanation:

Considering the annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, then the study indicated that the size of alum's donation to the annual fund is the response variable

You use ________________ to communicate a risk and the resulting impact.A. risk management plansB. CBAsC. risk statementsD. POAMs

Answers

Answer:A

Explanation:

I believe the answer is: A.

Because the others don’t sum up to the problem. Hope this helps! :)
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What is the role of Georgia's state agencies? Read the passage from the Torah.Remember the Sabbath day to sanctify it. Six days may you work and perform all your labor, but the seventh day is a Sabbath to the Lord, your God; you shall perform no labor. . . . For [in] six days the Lord made the heaven and the earth, the sea and all that is in them, and He rested on the seventh day. Therefore, the Lord blessed the Sabbath day and sanctified it.Exodus 20:811Why is the Sabbath holy to Jewish people?God said that the Sabbath is the holiest day of the week to work.The Sabbath tells the story of Gods creation of heaven and Earth.The Sabbath is a day of rest from all work because God rested on the seventh day.The Sabbath is the sacred agreement with the Jewish people to always work hard to please God. A roller coaster with a potential energy of 235,200 J sits at the top of a 30 m high hill. What is the mass of the rollercoaster? (Formula: PE = mgh)O 800 kgO 7,840 kgO 8,000 kgO 78,400 kg Classify the following works as literary, expository, procedural, or persuasive an instruction manual about how to put together a bicycle a book telling the life story of President John F. Kennedy an article about why everyone should have a daily exercise routine an article about the causes of diabetes an article about the history of the game of football in America a story about the Holocaust told by a concentration camp survivor an article about the negative effects of smoking a magazine advertisement that aims at convincing the reader to purchase a product a car owner's manual showing the reader how to change the oil 8. What was the MOST significant contribution of the Marquis de Lafayette during the American Revolution?O A He became the sole leader of the Continental Army.B He gained military and naval support from France at the battle of Yorktown.O C He helped identify Benedict Arnold as a traitor.OD He taught the Continental Army how to fight a European style war. Write the slope-intercept form of the equation of the line described. through (2, -5) perpendicular to y = 1/3x -1 How might the theory of states' rights undermind the federal government? fuerza 1 = 3.5 y fuerza 2 = 7,2 que fuerza debe aplicarse los sobre el espacio para que est permanezca en reposo scientific name of dinosour? Does the Court's decision make it impossible to treat juvenile and adult casesdifferently? I WILL GIVE BRAINLIESTwho was given the right to vote and who was not under the progressive acts placed in the Oklahoma ConstitutionITS A SHORT WRITTEN ANSWER What was the relationship between the public assemblies and the tribune inthe Roman Republic?A. The public assemblies vetoed the tribune's laws.B. The public assemblies appointed the tribune.C. The public assemblies advised the tribune.D. The public assemblies elected the tribune. PLZZ HELP ASAP 10 POINTS + BRAINLIEST TO FIRST CORRECT ANSWER...ANY FAKE ANSWER WILL BE REPORTED AND DELETED.A storm surge is characterized bylarge hail.strong winds.severe lightning.coastal flooding. In the students are to be corrected immediately. Select one: a. The communicative Method b. Audio Lingual Question 2. In Grammar - Translation Method the teacher must be a native speaker of the target language taught at the classroom. Select one: True False Jason has 4 tiles. Each tile has a number printed on it. The numbers are 2, 3, 6, and 8. A decimal number is formed using the tiles and the clues. Find the number. Clues: 1. The digit in the tens place is the greatest number. 2. The digit in the tenths place is less than the digit in the hundredths place. 3. The digit in the ones place is greater than the digit in the hundredths place. Which sentence uses a homophone incorrectly?A. The knight wore shiny steel armor. B. Having a cold made her voice horse C The infant wakes me up on a regular basis. D.I was inspired by the beautiful music of the orchestra. In a monopolistically competitive industry, price:______ a. is most likely a bit higher than the competitive market price because of the cost of variety. b. will exceed the monopoly price due to the destructiveness of competitive forces. c. will be lower than the competitive price due to cost savings. d. is contingent on the behavior of other firms because they are mutually interdependent. What is Lopados conclusion in the nuremberg trials? Helpppppppppppppp asappppppppppp An official government order to be enforced as law is called _______________.a.a constitutionb.an amendmentc.a decreed.a treatyPlease select the best answer from the choices provided