a stock has an expected return of 10.45 percent, its beta is .85, and the expected return on the market is 11.8 percent. what must the risk-free rate be?

Answers

Answer 1

When a stock's expected return is 10.45%, the market's expected return is 11.80%, its beta is.85, and the risk-free rate is 2.8%, the stock's expected return is 10.45%.

The risk-free rate is a measure of the interest a shareholder would get over a given time period on a completely risk-free investment. Subtracting the current inflation rate from the yield of the Treasury bond that corresponds to the period of your investment will produce the so-called "real" risk-free rate.

A risk-free rate of return formula figures out the interest rate that investors anticipate earning on an investment that bears no hazards, particularly default risk and reinvestment risk, over a certain period of time. It may vary for various investors and is typically closer to a central bank's base rate.

Information available

Beta = 0.85

Return anticipated: 10.45%

11.80% is the market rate of return.

The return formula according to the Capital Asset Pricing Model (CAPM) is

Expected return = Beta + Risk Free Rate (Market return - risk free rate)

10.45 = Rf + 0.85*(11.80 - Rf) (11.80 - Rf)

10.45 = Rf + 10.03 - 0.85Rf

10.45Rf - 10.03Rf = 0.42Rf - 0.15Rf = 2.8

Consequently, the risk-free return rate is 2.8%.

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Related Questions

Which person maintains quality control of all production elements after opening? A) Director B) Producer C) Stage manager. D) Dramaturg.

Answers

The person who maintains quality control of all production elements after opening is typically the stage manager. This is because the stage manager is responsible for coordinating and supervising all aspects of the production, from the actors to the technical crew.

They are also in charge of ensuring that the production runs smoothly and that everything is executed according to the director's vision.

Additionally, the stage manager is responsible for maintaining the quality of the performance throughout the run of the show, making sure that each performance is consistent and meets the high standards set by the director.

Overall, the stage manager plays a critical role in ensuring that the production is successful and maintains its quality over time.

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a building rents for $32 per square foot with an index of 1.6. the index increases to 1.9. what is the adjusted rental rate?

Answers

The adjusted rental rate is $41.60.

What is the adjusted rental rate?

Price index measure the relative change in prices relative to a base year. Changes in indexes give a measure of inflation in the economy. The rental rate would be adjusted for inflation.

Inflation is when the general price level in an economy increases. Inflation can be as a result of an increase in the demand for goods and services or an increase in the cost of production.

The adjusted rental rate can be determined by first calculating the inflation rate and then increasing the rent for the calculated inflation rate.

Inflation rate = 1.9 - 1.6 = 0.3 = 30%

The adjusted rental rate = (1.3) X $32 = $41.60

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.org made a $2.4 million grant to givedirectly, a nonprofit that provides direct cash aid to the poor. this example of corporate social responsibility is known as:

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.org made a $2.4 million grant to give directly, a nonprofit that provides direct cash aid to the poor. This example of corporate social responsibility is known as: Corporate Philanthropy

The act of a company or organization supporting the well-being of others, typically via philanthropic gifts of money or time, is known as corporate philanthropy.

Giving back to the community is the main advantage of participating in corporate philanthropy. It may be really fulfilling to commit to helping local groups and people who put forth a lot of effort to better society. A company's public image can be enhanced via philanthropy initiatives.

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Tim received a letter from his state college stating that he had been expelled from the school. The letter stated his finance professor reported him to the Dean's office for cheating and that a committee had decided to expel him. He was reminded in the letter he had been disciplined earlier that same year for plagiarizing a term paper. Tim believes his due process rights have been violated by the college. Discuss what factors should be considered to determine the validity of Tim's claim?

Answers

Answer: He should make an appeal of not given a notice and the neutral fault finding should be introduced

Explanation:

They are something's that Time has to consider to challenge the expulsion already prepared for him. He should make an appeal to a court or a higher authority for a reversal of the decision while doing this he should let the court know that he wasn't notified earlier about schools decision and that a neutral fault finder process should be introduced to investigate the whole scenario.

What are three advantages of attending a community job fair? You can fill out job applications. You can decide whether you like the company by meeting the people. You can hand in your résumé. You can talk to a recruiter or hiring manager.

Answers

Answer:

You can fill out job applications.  

You can hand in your résumé.  

You can talk to a recruiter or hiring manager.

Explanation:

The events organized to discover and explore the employers and the job seeking candidates at a platform. The interested hiring committee and the job seekers meet a point where they find opportunity to seek jobs. This process helps in minimizing the efforts and time of both the employers and the candidates. The instant job offer is the biggest advantage of the fair. The candidates can hand their resume directly to the recruiters and have direct word with them.

who can cheer me up i have seizures

Answers

Answer:

I got a joke for you :)

Why do we tell actors to “break a leg?”

Because every play has a cast.

Answer:

I will, have you eaten anything yet maybe some bacon and eggs and if you are vegetarian or vegan, nuts with fruits

Explanation:

just stay calm I wouldn't want anything to happen to such a precious person like yourself

do you have some toys to play with that might help you to stay calm

just stay SAFE I don't want anything happening to you

For streaming video companies, operating the web portal is an example of __________________ while royalties for each view is an example of ___________________.

Answers

The operating the web portal is an example of fixed cost while the royalties for each view is an example of variable cost

What is a fixed cost?

A fixed costs are those expenses that don't change when sales or production volumes increase or decrease.

What is a variable cost?

A variable cost refers to those expense that changes in proportion to how much a company produces or sell

In conclusion, the operatioon of the web portal is an example of fixed cost while the royalties for each view is an example of variable cost in a  streaming video companies.

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Answer:

For streaming video companies, operating the web portal is an example of Fixed Cost while royalties for each view is an example of Variable Cost.

Explanation:

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Ryan invested in company stock in the year 1996 . The annual yield for his investment was 6.5%; however, the inflation rate was 7.6%. (a) What was the real growth rate of this investment? Answer: % (b) Suppose Ryan wants to make a better investment that will have a real growth rate of 9.6%. What annual interest rate will he need to earn on his investment to accomplish his goal? Answer: %

Answers

Ryan would need to earn an annual interest rate of 17.2% on his investment to accomplish his goal of a real growth rate of 9.6%.

(a) To calculate the real growth rate of Ryan's investment, we need to subtract the inflation rate from the annual yield rate. In this case, the annual yield rate is 6.5% and the inflation rate is 7.6%.

Real Growth Rate = Annual Yield Rate - Inflation Rate

Real Growth Rate = 6.5% - 7.6%

Real Growth Rate = -1.1%

Therefore, the real growth rate of Ryan's investment is -1.1%.

(b) To determine the annual interest rate Ryan would need to earn on his investment to achieve a real growth rate of 9.6%, we need to add the inflation rate to the desired real growth rate.

Annual Interest Rate = Real Growth Rate + Inflation Rate

Annual Interest Rate = 9.6% + 7.6%

Annual Interest Rate = 17.2%

Therefore, Ryan would need to earn an annual interest rate of 17.2% on his investment to accomplish his goal of a real growth rate of 9.6%.

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What does it mean if your net assets increase

Answers

When a company earns income, it becomes larger because net assets have increased. Even if a portion of the profits is later distributed to shareholders as a dividend, the company has grown in size as a result of its own operations.

Answer:  When a company earns income

Explanation: the value of a company's assets minus its liabilities. It is calculated ((Total Fixed Assets + Total Current Assets) – (Total Current Liabilities + Total Long Term Liabilities)).

Look at the following email (attached). Name two good email netiquette practices used in the
email. Name two poor email netiquette practices

Look at the following email (attached). Name two good email netiquette practices used in theemail. Name

Answers

Two good email etiquettes practices used in email are:

Inserting a SubjectKeep the email short and restricted to three paragraphs.

Two bad email etiquettes used in the email above are:

Indiscriminate use of the exclamation markDiscussing personal issues in a formal email.

What are email etiquettes?

The use of acceptable language, standards, and politeness in an email is referred to as email etiquette. Business emails often need formal language as well as rigorous respect to appropriate grammar and spelling.

Five useful E-mail Etiquette are:

Address your addressee appropriately. Check, double-check, and triple-check that you have the right spelling of the recipient's name and title.Proper greetings and closing statements should be used.Format correctly.Avoid using ALL CAPS.Large files should be compressed.

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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

Answers

When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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what is a benefit of obtaining a personal loan quizlet

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A personal loan is a type of loan that can be used for a variety of purposes such as debt consolidation, home improvements, medical expenses, or even to fund a vacation. One of the main benefits of obtaining a personal loan is the flexibility it provides. Unlike other types of loans that are typically tied to a specific purpose, personal loans are unsecured and can be used for anything you need.

Another benefit of obtaining a personal loan is that they often have lower interest rates compared to credit cards or other types of loans. This can be particularly helpful if you are trying to consolidate high-interest debt into one loan with a lower interest rate.

Additionally, personal loans offer a fixed repayment term and monthly payment, making it easier to budget and plan for repayment. This can be helpful if you need to make a large purchase or cover unexpected expenses.

Overall, a personal loan can be a useful financial tool for a variety of reasons and can provide flexibility, lower interest rates, and predictable repayment terms.

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Final answer:

Personal loans offer benefits when used for investments with long-run payoffs, such as education or business ventures. They provide the required capital for significant purchases or investments that can lead to increased profits or earnings in the future. They also offer immediate financial relief for those anticipating a rise in income.

Explanation:

Obtaining a personal loan has several benefits, particularly when you are making an investment with potential long-run payoff. Personal loans can provide the necessary capital for significant expenditures where future returns are expected (e.g. college education, business investment).

For instance, borrowing for a college degree can be a wise move. The increased earning potential and higher wages associated with a higher level of education often allows for the repayment of the loan while still improving one's financial position. Similarly, businesses can take loans to purchase equipment or invest in projects that can increase output and profits enough to cover the repayment of the loan and further advance the business.

Furthermore, personal loans can also provide immediate financial relief for those in need (like college students with low or no income) who anticipate greater financial stability in the future. This relief helps to cover current expenses, with the understanding that the loans can be repaid once income levels increase.

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Drag the tiles to the correct boxes to complete the pairs.
Match the different resources to the scenarios where they are used.
natural resources
human resources
man-made resources
entrepreneurship
A power plant uses an Industrialdesign power generator to generate large-scale
electricity for the neighborhood.
A power plant uses coal to heat water and then converts it into steam, which
then turns the turbines.
>
A power plant is set up by a group of industrialists as they come together to
solve the power crisis in their nelghborhood.
A power plant employs local workers who work in shifts to keep the plant
running for most of the day.

Answers

Answer:

1. Man-made

2. natural resources

3. entrepreneurship

4. Human resources

Explanation:

A power plant utilized a power generator to generate for their neighborhood the electricity on a large scale basis should be matched with the man-made resources.A power plant where coal is used to heat water by converting it into the stream to turn on the turbines should be matched with the natural resources.A power plant that is established by industrialists in order to solve the power crisis in the neighborhood should be matched with entrepreneurship.A power plant where local workers are employed to keep the plants active by working in the shifts should be matched with the human resources.

What are natural resources?

Natural resources are those which are present in the environment and are limited in number.

The man-made resources are those where a power generator is used to initiate the electricity on large scale.The natural resources are those where the water is heated from coal and then converting it to steam for running the turbines.The entrepreneurship is represented when the industrialists come together to solve the power crisis of their own neighborhood.The human resources are those where the workers are working in shifts to keep their plants in running condition.

Therefore, the given resources are matched with the scenarios in which they are used.

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Explain your reason behind the company dress code and the differences between departments

Answers

Reason behind company dress code: Projects professionalism, maintains brand identity, and creates a positive work environment.  Differences between departments: Varied dress codes align with job responsibilities and client interactions, balancing professionalism, practicality, and employee comfort.

Reason behind company dress code: The company dress code serves multiple purposes, including projecting a professional image, maintaining a consistent brand identity, and creating a positive work environment. It helps employees present themselves in a manner that aligns with the organization's values, industry standards, and client expectations. A dress code contributes to professionalism, promotes a sense of unity, and reinforces the company's culture.

Differences between departments: The variations in dress code between departments often arise from the nature of job responsibilities and client interactions. Customer-facing departments, such as sales or client services, may have a more formal dress code to establish credibility and maintain professionalism when dealing with external stakeholders. Conversely, internally-focused departments like IT or creative teams may have a more relaxed dress code to encourage creativity and flexibility.

These differences aim to balance professionalism, practicality, and employee comfort, while still adhering to the overall standards set by the organization. It is essential to communicate dress code policies clearly to ensure everyone understands the expectations and reasons behind them, fostering a cohesive and respectful work environment.

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If you were paid $952 today, and you invested it at a 5% interest rate, how much would you have a year from now?
$900
O a
$952
b.
$985
Oc.
$1000
d
None of these
e

Answers

Answer:

Depends on if its simple or compund bu since your investing to earn, ill estimate they want the compound answer which is 999.60 which can be rounded to $1000. If they want it rounded, its $1000 if they dont, it's none of the above

Explanation:

A=P(1+r)t

A=952(1+0.05)1

A=952(1.05)1

A=952(1.05)

A=952x1.05

A=999.60 which can be rounded to 1000

Type your response in the box. As you read this paragraph, think about the various traits of money. On her way to work, Cara stops by her local coffee shop for tea and oatmeal to go. She pays cash and receives change. She then remembers that she needs to get gas. She fills up her car’s tank, and charges it to her credit card. When her shift is over, she goes to the ATM to deposit her paycheck in her savings account. She stops home to change clothes before she goes to the gym. Not wanting to take her purse to the gym, she folds up a $5 bill and puts it in her pocket with her driver’s license. When she pays for water and a banana at the gym, the clerk laughs at how old Cara’s $5 bill is. Cara replies that it’s good that all money looks the same over the past few years. List five ways this scenario references money????? can someone help me please please.

Answers

Answer:

Here are some possible answers:

She buys items with cash.

She gets change.

She uses a credit card.

She deposits a paycheck in the bank.

She folds up cash.

She hears that her cash looks old.

She says that it looks the same as newer bills.

Explanation:

PLATO

Answer:

She buys stuff with cash, she gets change, she uses a credit card, she deposits a paycheck in the bank, and she folds up cash

Explanation:

Hope this helps! <3

Todd, a travel agent, lost his job due to no need for his skill. This is an
example of what type of unemployment?
A. Cyclical unemployment
O
B. Voluntary unemployment
C. Structural unemployment
D. Frictional unemployment

Answers

The answer is be because the he chose to leave I think

Who are the communicators between employees and managers? * a. Supervisors b. Shift managers c. Department managers d. General managers

Answers

The communicators between employees and managers is the supervisors as they work to for both side. The Option A is correct.

What is the role of a communicator in a company?

Mainly, business communication is communication that is intended to help a company achieve a fundamental goal by sharing information among employees and people outside the company.

An effective communicator in business seeks to unite the audience by using ideas and language that are appropriate for all readers or listeners of the message. Emotions and logic both influence people. The ethical communicator will be enthusiastic and passionate without being disrespectful.

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An investor buys a security at a bond equivalent yield of 12% with 130 days to maturity. The investor's bank discount rate on this investment is _____.

You purchased 100 shares of Amazon.com common stock on margin at $135 per share. Assume the initial margin is 0.65. You received a margin call when the share price dropped to $95. What is your maintenance margin requirement (MMR)?

Suppose you are holding stock and there are three possible outcomes. The good state happens with 20% probability and 18% return. The neutral state happens with 55% probability and 9% return. The bad state happens with 25% probability and -5% return. What is the expected return?

Answers

An investor buys a security at a bond equivalent yield of 12% with 130 days to maturity. The investor's bank discount rate on this investment is _____."

The investor's bank discount rate on the investment is 10.96%."

The formula used to solve this problem is:(100 - D) / D x (365 / 130) = 12.

This equation should be reorganized to solve for D as follows:

D = 100 / (100 + 12 x 130 / 365) = 100 / (100 + 1.0855) = 100 / 101.0855 = 0.9894 or 98.94%

Then, convert D to a percentage by subtracting it from 100 percent:

100% - 98.94% = 1.06%.

So the investor's bank discount rate on the investment is 1.06%.

Maintenance margin requirement (MMR):

Margin call = (100% - 0.65) * 100 * $135 = $45,150.

New share price = $95.

Margin call / new share price = $45,150 / $95 = 474.73 shares.

So, you have to keep at least 474.73 shares in the margin account to fulfill the maintenance margin requirement.

Expected return is calculated by using the following formula:

Expected Return = (20/100 x 18%) + (55/100 x 9%) + (25/100 x -5%).

Expected Return = 3.6 + 4.95 + (-1.25).

Expected Return = 7.3% - 1.25%.

Expected Return = 6.05%.

Therefore, the expected return is 6.05%.

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Enterprises that provide goods or services to, or receive them from my training institution or organization​

Answers

Answer:

Enterprise is another word for a for-profit business or company, but it is most often associated with entrepreneurial ventures. People who have entrepreneurial success are often referred to as “enterprising.” There are many forms of legal enterprises, with the most common in the U.S.

pls help with the question attached i'm desperate and pls explain it well as a 12 mark

pls help with the question attached i'm desperate and pls explain it well as a 12 mark

Answers

Yes, The Cake Spa should use segmentation to gain a competitive advantage.

Three basic steps in marketing helps the marketer to identify the right customers, and their target market and to know the right information to reach their potential customers. These are S-segmentation, T- targeting, P- positioning.

Segmentation allows businesses to target specific groups of customers with tailored marketing messages, which can be much more effective than a blanket approach.

By segmenting its customer base into different demographic basis variables such as on the bases of age, gender, geography, income, and other factors, The Cake Spa can tailor their messaging to each group and have a better chance and opportunities of converting them into customers. It will help them to gain more share in the market and also in profit maximization.

Additionally, segmentation can help The Cake Spa identify opportunities for product and service innovation and even identify new target markets. By using segmentation, The Cake Spa can gain a competitive advantage by targeting its messages to specific audiences, optimizing its marketing efforts, and staying ahead of the competition.

It will also help them in analyzing their competitors and in the formation and implementation of marketing strategies.

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GOOD FOR U NEWHUivbuwivbeuidbAOL

Donna is thinking about buying a house that costs $250,000. If she puts down $50,000 and is able to get a 5 percent
mortgage, she wants an estimate of her total monthly housing expenses. The average annual cost
for owning a house is 4.09 percent of the value of the house. If we do not include the opportunity cost of the down
payment, amortization on the loan or any tax benefits from homeownership, what will be her monthly cost the first
month?​

Answers

Answer:

$1,685.41

Explanation:

we need to calculate:

monthly interest payment on the mortgage for the first monthmonthly cost of owning a house

monthly interest payment on the mortgage for the first month = $200,000 x 5% x 1/12 = $833.33

monthly cost of owning a house = $250,000 x 4.09% x 1/12 = $852.08

total monthly cost = $833.33 + $852.08 = $1,685.41

Example: Customers arrive at a carwash according to Poisson Distribution with mean 4 per hour. Time for washing a car is exponentially distributed with mean 10 minutes per car. The facility contains one service bay
1- What percent of the time the facility will be idle?
2- How many cars will be waiting for service when a customer arrives? (expected value)
3- How many cars will be in the facility when a customer arrives?
4-How long a customer arriving at the facility will have to wait before his/her car is washed?
5- How long a customer arriving at the facility will take till his/her car is washed and ready to leave the facility?
6-How many parking spaces should be provided so that an arriving customer will find an empty space at least 90% of the time? (let s be the desired number of parking spaces)
PLEASE SOLVE ALL OF QUESTIONS and SOLVE IT MANUALLY USING EQUATIONS

Answers

1. The facility will be idle approximately 6.7% of the time.

2. On average, there will be 0.4 cars waiting for service when a customer arrives.

3. On average, there will be 0.4 cars in the facility when a customer arrives.

4. A customer arriving at the facility will have to wait approximately 2.5 minutes before their car is washed.

5. A customer arriving at the facility will take approximately 12.5 minutes until their car is washed and ready to leave the facility.

6. To ensure that an arriving customer finds an empty parking space at least 90% of the time, approximately 3 parking spaces should be provided.

1. The percent of time the facility will be idle can be calculated using the formula for the Poisson distribution, where the mean arrival rate is 4 per hour. By plugging in the values, we find that the facility will be idle approximately 6.7% of the time.

2. The expected number of cars waiting for service when a customer arrives can be calculated using the formula for the Poisson distribution, where the mean arrival rate is 4 per hour and the mean service time is 10 minutes per car. By multiplying the arrival rate by the service time, we find that on average, there will be 0.4 cars waiting for service when a customer arrives.

3. Similarly, the expected number of cars in the facility when a customer arrives can also be calculated as 0.4 cars using the same approach.

4. The waiting time for a customer can be calculated using the formula for the exponential distribution, where the mean service time is 10 minutes per car. The average waiting time is half of the mean service time, so a customer arriving at the facility will have to wait approximately 2.5 minutes.

5. The total time a customer spends at the facility, including waiting and service time, can be calculated by adding the waiting time to the mean service time. Thus, a customer arriving at the facility will take approximately 12.5 minutes until their car is washed and ready to leave.

6. To determine the number of parking spaces needed, we need to find the minimum number of spaces that will ensure an empty space at least 90% of the time. This can be calculated using the formula for the Poisson distribution with the desired probability of finding an empty space. By plugging in the values and solving for the number of spaces, we find that approximately 3 parking spaces should be provided.

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Need a slogan for my product for business class

Answers

what’s the product??
I hope your business goes somewhere one day! Good luck mate.

Which type of promotion would you use to attract customers quickly with the help of coupons, samples, and free gifts?

(blank) is a way of promoting your products and attracting customers quickly with the help of free coupons, vouchers, samples, and gifts.

Answers

Answer:

Sales promotion

Explanation:

Sales promotions refer to the persuasive activities of convincing potential customers to buy a product. The objective of a sales promotion is to boost sales volumes. The tactics used in a sales promotion are designed to have a short term effect. However, a business may acquire long-term customers through sales promotion techniques.

Sales promotion may focus on customers by enticing them to buy. They may also target traders by encouraging them to sell more. The techniques used in a sale promotion include Money off coupons, Competitions, Free gifts, Loyalty cards, Discount vouchers, among others.

Answer:

Sales promotion may focus on customers by enticing them to buy. They may also target traders by encouraging them to sell more. The techniques used in a sale promotion include Money off coupons, Competitions, Free gifts, Loyalty cards, Discount vouchers, among others.

Explanation:

differences between departmental stores and chain stores ​

Answers

Answer:

Chain stores and department stores are two distinct ideas. Department stores have a long history of providing a wide range of products for retail sale, whereas chain shops are retail establishments with the same name and management in numerous locations. Contrary to popular belief, not all department shops are part of a chain. There are numerous chains that aren't thought of as department stores, including eateries and speciality shops. One of the most well-known chained department shops is Macy's, located on Herald Square in New York City.

A department store is often a sizable retail space that provides a wide range of products divided into distinct sections. Retail establishments that are part of a chain share a brand and centralised management. They frequently include standardised corporate procedures.

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Bart, Inc., a newly organized corporation, uses the equity method of accounting for its 30% investment in Rex Co.'s common stock. During 20X5, Rex paid dividends of $300,000 and reported earnings of $900,000. In addition: The dividends received from Rex are eligible for the 80% dividends-received deduction. All the undistributed earnings of Rex will be distributed in future years. There are no other temporary differences. Bart's 20X5 income tax rate is 30%. The enacted income tax rate after 20X5 is 25%. In Bart's December 31, 20X5 balance sheet, the deferred income tax liability should be

Answers

Answer:

The right answer is "$9,000". A further explanation is given below.

Explanation:

The given values are:

Rex paid dividends,

= $300,000

Reported earnings,

= $900,000

Investment,

= 30%

Taxable rate applicable,

= 25%

Now,

Throughout the future years, the amount of dividends taxable will be:

= \((900,000 - 300,000)\times 30 \ percent\)

= \(180,000\) ($)

Dividends received deduction will be:

= \(180,000\times 80 \ percent\)

= \(144,000\) ($)

then,

Net taxable dividend will be:

= \(180,000-144,000\)

= \(36,000\)

hence,

Deferred tax liability will be:

= \(36,000\times 25 \ percent\)

= \(9,000\) ($)

(03.04 LC)
Which federal legislation gives consumers the right to know what is in their credit
report?

Answers

Answer:

The Fair And Accurate Credit Transaction Act (FACTA)

Explanation:

In early 2009, General Electric (GE) had a book value of equity of $105 billion, 10.5 billion shares outstanding, and a market price of $10.80 per share. GE also had cash of $48 billion, and total debt of $524 billion. Three years later, in early 2012, GE had a book value of equity of $116 billion, 10.6 billion shares outstanding with a market price of $17 per share, cash of $84 billion, and total debt of $410 billion. Over this period, what was the change in GE's a. Market capitalization? b. Market-to-book ratio? c. Enterprise value?

Answers

Answer and Explanation:

1. The computation of Market capitalization is shown below:-

Market Capitalization in 2009 = Market Price × Outstanding Shares

= 10.5 × $105

= $1,102.5 billion

Market Capitalization in 2012 = Market Price × Outstanding Shares

= $17 × $10.6

= $180.2 billion

Changes in Market Capitalization = Market Price × Outstanding Shares

= $1,102.5 billion - $180.2 billion

= $922.3

b. The computation of Market-to-book ratio is shown below:-

Market to Book Ratio in 2009 = Market Value of Firm ÷ Book Value of Firm

= $1,102.5 billion ÷ $105 billion

= 10.5

Market to Book Ratio in 2012 = Market Value of Firm ÷ Book Value of Firm

= $180.2 billion ÷ $116 billion

= 1.55

Changes in Market to Book Ratio = Market to Book Ratio in 2009 - Market to Book Ratio in 2012

= 10.5 - 1.55

= 8.95

c. The computation of enterprise value is shown below:-

Book Debt to Equity Ratio in 2009 = Debt ÷ Book Value of Equity

= $524 ÷ $105

= 4.99

Book Debt to Equity Ratio in 2012 = Debt ÷ Book Value of Equity

= $410 ÷ $116

= 3.53

Changes in Book Debt to Equity Ratio = Book Debt to Equity Ratio in 2012 - Book Debt to Equity Ratio in 2009

= 3.53 - 4.99

= -1.46

What's the interest rate on a $14,000 loan that requires a semi-annual interest payment of $550? round to the nearest percent

Answers

The interest rate on a $14,000 loan that requires a semi-annual interest payment of $550 is 8%

The formula for calculating FV is P(1 + r/n)(nt) 550 = 14000(1 + r/2)(2.1), where r = 8%.

A sort of debt that a person or other entity accrues is a loan. On behalf of a company, bank, or government, the lender normally advances the borrower a set sum of money. In exchange, the borrower agrees to a particular set of conditions, which may include any fees, interest, a repayment timetable, and other demands.

The charge made by a lender to a borrower is known as an interest rate, and it is given as a percentage of the principal or the amount that was lent. The annual percentage rate, or APR, is typically used to express the interest rate on a loan (APR).

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