The expected rate of return on Rewind Industries is 2.5 times the 12 percent expected rate of return from the market. What is Rewind's beta if the risk-free rate is 6 percent

Answers

Answer 1

Answer:

beta = 6

Explanation:

the CAPM formula is:

Required return = risk free + (beta x market premium)

market return = 12% = 6% x (1 x 6%)

risk premium = 12% - 6% = 6%

required return = 12% x 2.5 = 30%

risk free = 6%

beta x market premium = 30% + 6% = 36%

beta = 36% / 6% = 6, which means that this stock is very risky and very volatile


Related Questions

Tell me about a time when you made a mistake.. How did you find it and what did you do to correct it?

Answers

Answer:

When I first became an assistant manager of a sales branch, I tried to take on everything myself, from the day-to-day operations of the branch to making all of the big sales calls. I quickly learned that the best managers know how to delegate effectively so that work is done efficiently. Since then, I have won numerous awards for my management skills, and I believe a lot of this has to do with my ability to delegate effectively.

Please tell me the right answer.. if i fail one semester, and i pass the other, then do i pass the grade? Please tell me i need to know :\

Answers

Answer:

okay whats the question I help you

Explanation:

also i need help with my math hw too lol

no you dont you would have to retake a semester next year or take the course over the summer

The owner of a real estate office prepared a cash flow budget for the coming month. The beginning cash balance was $1,500.
Projected revenue and costs are:
• revenue of $5,000
• supply costs of $1,000
• staff payroll of $2,500
• rent of $1,000
• insurance of $100
Match the dollar amount to the correct line item on a cash flow budget:
non

Answers

Answer:

I need to put middle school mode on

The Uniform Commercial Code (UCC) applies to Internet contracts.


True

False

Answers

Answer:

True, article 2 of the UCC applies to the sales of goods through internet channels.

Explanation:

The UCC governs transactions involving the sale of goods (not services) and the requirement of a written agreement is generally satisfied when parties exchange electronic messages, e.g. emails that confirm the transaction.

In relation to other types of internet transactions, the Uniform Computer Information Transactions Act (UCITA) was created in order to govern software licenses and other types of electronic contracts.

Answer:

true

Explanation:

Greg contracts to build a storage shed for Haney. Haney pays Greg in advance, but Greg completes only half the work. Haney pays Ipswich $500 to finish the shed. If Haney sues Greg, what would be the measure of recovery?

Answers

Answer:

Haney is going to be compensated for expected benefits. He has to be put in the situation he would have been if the job was fully done by Greg. So since payment amount was 500, the compensatory damage should be about the same amount.

Explanation:

From this question, haney paid Greg in advance for a job that Greg did not complete. And he Haney ended up getting someone else to do the job.

Now The damages are going to be compensation to Haney as Greg did not complete the job. The amount he is going to get, is the cost of the work, which would be $500.

Greg breached the contract with Haney by not finishing the job, but yet taking Haney's payment.

Haney is going to be compensated for expected benefits. He has to be put in the situation he would have been if the job was fully done by Greg. So since payment amount was 500, the compensatory damage should be about the same amount.

Excerpts from Hulkster Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable$40,000 $36,000 Merchandise inventory$28,000 35,000 Net sales 190,000 186,000 Cost of goods sold 114,000 108,000 Total assets 425,000 405,000 Total shareholders' equity 240,000 225,000 Net income 32,500 28,000 Hulkster's 2021 profit margin is (rounded): 17.1%. 13.5%. 4.5%. 7.6%.

Answers

Answer:

Hulkster's 2021 profit margin is:

17.1%.

Explanation:

a) Data and Calculations:

                                                   2021          2020

Accounts receivable              $40,000     $36,000

Merchandise inventory         $28,000       35,000

Net sales                                190,000      186,000

Cost of goods sold                 114,000      108,000

Total assets                          425,000     405,000

Total shareholders' equity  240,000     225,000

Net income                            32,500        28,000

Profit margin = net income/net sales * 100

= $32,500/$190,000 * 100

= 17.1%

b) The profit margin of 17.1% indicates that Hulkster Company has generated an income of 17.1 cents for each dollar of sales.  It shows the company's income performance with relation to the net sales revenue.  It is a ratio of the net income expressed as a percentage of the sales.

In designing health promotion efforts, it is important to set clear goals and measure how successful you are compared to the money and time you invest. This is known as:__________.
a. Objectivity
b. Diffusion of innovations
c. Accountability
d. Two-step flow

Answers

Answer:

c. Accountability

Explanation:

This is known as accountability. In other words its making sure that you are holding yourself accountable for doing what you need to do and making sure that your efforts are not for nothing. This is done by staying on top of your choices and adjusting your decisions so that the money and time you invest are paying off with and pushing you towards the goals that you have set forth.

Andrews Corp. ended the year carrying $46,369,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?
a. $264,018,840
b. $191,318,000
c. $67,711,000
d. $104,076,000

Answers

Answer: $46,369,000

Explanation:

At the end of the year, all the costs associated with inventory and operations have been dealt with in the income statement.

This means that if the entire inventory were sold at current prices which is $46,369,000, the addition to revenue will be what the goods were sold for which is the current price.

Options do not have this answer but that is it.

A coupon on a 2-liter bottle of Pepsi, offering $1.00 off on a bag of potato chips, is which type of coupon:_____

a. cross-ruffing
b. scanner-delivered
c. response-offer
d. instant-redemption

Answers

Answer: a. cross-ruffing

Explanation:

Cross-ruffing coupons are coupons that are offered to a person buying a good on another good to encourage them to buy that other good as well. These are usually offered on goods produced by the same company or companies that have a relationship with each other.

They are a brilliant marketing ploy to result in one relating goods to another to boost sales. Offering a coupon on a bag of potato chips upon buying a bottle of Pepsi is there a cross-ruff coupon.

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $140,000 and would decrease the current variable costs of $80 by $10 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $240,000 and current break-even units are 2,000. If Forrester purchases this new equipment, the revised break-even point in units would:

Answers

Answer:

Break-even point in units= 2,800

Explanation:

Giving the following information:

Fixed csots= $140,000

Unitary variable cost= 80 - 10= $70

Selling price per unit= $120

To calculate the new break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 140,000 / (120 - 70)

Break-even point in units= 2,800

If Canace Company, with a break-even point at $312,000 of sales, has actual sales of $400,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales?

Answers

Answer:Margin of safety expressed in dollars=$88,000

Margin of safety  as a percentage of sales =22%

Explanation:

Margin of Safety is the sales greater the break-even point  that helps  businesses gauge and prevent a loss. A Higher Margin of Safety is preferred as it limits the risk of businesses  making loss

Margin of safety expressed in dollars= Total actual sales - break-even point of sales

$400,000 - $312,000

=$88,000

Margin of safety  as a percentage of sales =Margin of safety/ Actual sales  x 100

$88,000/ $400,000 x 100

0.22 x 100

= 22%

On April 1, year 1, Mary borrowed $240,000 to refinance the original mortgage on her principal residence. Mary paid 3 points to reduce her interest rate from 6 percent to 5 percent. The loan is for a 30-year period. How much can Mary deduct in year 1 for her points paid?
a) $240.
b) $180.
c) $5,400.
d) $7,200.

Answers

Answer:

b) $180

Explanation:

The answer to this question is option d, below is how I came up with this solution.

Loan period = 30 years

Amount borrowed = $240,000

3 points = 3 percent = 0.03

$240,000 x 0.03 = $7,200

9/360 = 0.025

7200 x 0.025

= 180 dollars.

From these calculations above, Mary can deduct 180 dollars in year 1 for her points paid

True or False: According to economic theory, because coupons are free, people who do not clip coupons are behaving irrationally.

Answers

Answer: false

Explanation:

The coupons are a type of promo code that is used for shopping or when buying a ne product or an item of sale. There are various sorts of coupons such as those of the households, personal care, and grocery coupons,

As per the economic theory people who don't clip the coupons that are free dint behave rationally is false. As coupons is a sort of discount rate that is only applicable to the specific items and has serval conditions.

Hence the option is False.

Learn more about the According to economic theory, because of coupons.

brainly.com/question/25575836.

Heridan Company is considering the following alternatives: Alternative AAlternative B Revenues$64000$72000 Variable costs 38400 38400 Fixed costs 10000 16000 What is the incremental profit?

Answers

Answer:

$2,000

Explanation:

To get the incremental profit, we would compute the profit for each alternatives and then subtract .

Alternative A

Incremental profit

= Revenues + Variable costs - Fixed costs

= $64,000 + $38,400 - $10,000

= $92,400

Alternative B

Incremental profit

= Revenues + Variable costs - Fixed costs

= $72,000 + $38,400 - $16,000

= $94,400

Incremental profit = Alternative B - Alternative A

Incremental profit = $94,400 - $92,400

Incremental profit = $2,000

The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.

Answers

Answer:

The labor participation rate would not change because it counts the labor force as a percentage of the total adult population, and the labor force includes both the number of people employed and the number of people unemployed, so, even if those working part-time were counted as unemployed by the BLS, they would still be part of the Labor Force.

The labor participation rate formula is:

Labor Participation Rate = (Labor Force / Total Adult Population) x 100

The unemployment rate would indeed change, because it counts the number of unemployed as a percentage of the labor force. If those working part-time were counted as unemployed by the BLS, the number of people unemployed would obviously spike.

The formula is:

Unemployment Rate = (Number of Unemployed / Labor Force) x 100

A company resells 400 shares of its own common stock for $20 per share. The company has acquired these shares two months before for $15 per share. The resale of this stock would be recorded with a:_______.
A) Debit to Common Stock for $8,000
B) Credit to Treasury Stock for $8,000
C) Credit to Additional Paid-In Capital for $2,000
D) Debit to Additional Paid-In Capital for $2,000

Answers

Answer:

C. Credit to additional paid-in capital for $2,000

Explanation:

Based on the information given we were told that 400 shares of own common stock was resell for $20 per share in which the shares was acquired two months before for $15 per share which means that the resale of this stock would be recorded with a: Credit to additional paid-in capital for $2,000

Calculated as:

Additional paid-in capital=(400 shares*$20 per share)-(400 shares*$15 per share)

Additional paid-in capital=$8,000-$6,000

Additional paid-in capital=$2,000

Bonita Company's inventory records show the following data:

Units Unit Cost
Inventory, January 1 10900 $8.00
Purchases: June 18 8700 8.10
November 8 5700 5.00

A physical inventory on December 31 shows 5700 units on hand. Under the FIFO method, the December 31 inventory is:_______

Answers

Answer:

$28,500

Explanation:

FIFO will give the same result whether you use perpetual or periodic system.

Ending Inventory = Units Left × Earliest Price

Therefore,

Ending Inventory = 5700 units × $5.00

                             = $28,500

Asset C3PO has a depreciable base of $16.5 million and a service life of 10 years. What would the accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method?
A. $ 4.5 million.
B. $8.25 million.
C. $ 12 million.
D. None of these is correct.

Answers

Answer:

C. $12 million.

Explanation:

The computation of the  accumulated depreciation be at the end of year five under the sum-of-the-years'-digits method is given below:

Accumulated depreciation is

= $16.5 million × [(10 + 9 + 8 + 7 + 6) ÷ 55]

= $12 million

hence, the accumulated depreciation be at the end of year five years is $12 million

Therefore the correct option is c.

Target Corporation reported the following information in a recent Form 10-K. Consolidated Statement of Operations ($ millions) FY 2016 Cost of sales $67,596 Consolidated Statement of Financial Position ($ millions) FY 2016 FY 2015 Inventory $10,321 $8,282
What is the (a) inventory turnover ratio, and (b) average days in inventory, for the fiscal year ended January 30, 2016?

Answers

Answer: See explanation

Explanation:

a. inventory turnover ratio

This will be calculated as:

= Sales cost / Average inventory

= $67,596 / $9301.50

= 7.2672

= 7.27

(b) average days in inventory.

This will be calculated as:

= 365 days / Inventory turnover ratio

= 365 / 7.27

= 50.20

= 50 days

Note:

Average inventory = ($10,321 + $8,282) / 2 = $9301.50

Eliminating double-taxation would likely:________.
a. raise saving and primarily benefit people with lower incomes.
b. raise saving but primarily benefit people with higher incomes.
c. reduce saving but primarily benefit people with lower incomes.
d. reduce saving and primarily benefit people with higher income.

Answers

Answer:

a. raise saving and primarily benefit people with lower incomes.

Explanation:

Double taxation may be defined as the tax system where the tax is levied twice on the income. It is the tax principle refers to tax income that is paid twice on same source of income. It pronounced a negative economic impact, mainly on the wages. Thus eliminating the system of double taxation would ensure more savings and it will people with lower wages or incomes.

A tax is a government group's compulsory financial charge or other types of levy imposed on a customer to finance government spending and related public expenses.

Failure to pay taxes on time, as well as avoidance or resistance to taxation, are all illegal.

The correct answer is a. raise saving and primarily benefit people with lower incomes.

Option a. raise saving and primarily benefit people with lower incomes are correct because Double taxation is a tax structure in which the same amount of money is taxed twice. It is a tax theory that applies to earnings taxed on the same source of income.

It had a detrimental economic impact, particularly on salaries. Eliminating a double tax structure would result in more savings for persons with lesser earnings or incomes.

To know more about double taxation, refer to the link below:

https://brainly.com/question/18907731

Jeremiah Corporation purchased debt securities during 2021 and classified them as securities available-for-sale:

Security Cost Fair Value, 12/31/2021
A $40,000 $49,000
B 70,000 66,000
C 28,000 39,000

All declines are considered to be temporary. How much gain will be reported by Jeremiah Corporation in the December 31, 2021, income statement relative to the portfolio?

Answers

Answer:

$0

Explanation:

unrealized holding loss = ending value - initial value = ($49,000 + $66,000 + $39,000)  - ($40,000 + $70,000 + $28,000) = $109,000 - $138,000 = -$29,000 unrealized loss

Unrealized holding gains/losses on available for sale securities are not reported in the income statement.

A manual press costs $16,000, and it will be scrapped after 10 years. Compute the depreciation and book value for the first two years using 100% bonus depreciation.

Answers

Answer and Explanation:

The computation of the depreciation and the book value for the first two years would be

Depreciation for Year 1

= 100% Bonus + regular depreciation

= $16,000 + $16,000 ÷ 10 years

= $17,600

And,

Book value year 1 is

= $16,000 - $1,600

= $14,400

Now

Depreciation for Year 2 is

= Regular depreciation

= $1,600

And,

Book value year 2 is

= $14,400 - $1,600

= $12,800

A monopolist can sell 15 toys per day for $12.50 each. To sell 16 toys per day, the price must be cut to $12.20. The marginal revenue of the 16th toy is:_________.A. $12.20.B. $-0.30.C. $7.70 .D. $16.

Answers

Answer:

A monopolist can sell 15 toys per day for $12.50 each. To sell 16 toys per day, the price must be cut to $12.20. The marginal revenue of the 16th toy is:_________.

A. $12.20.

Explanation:

For this monopolist, the marginal revenue is the incremental revenue which it generates from each additional unit of sales.  It can also be expressed as the rate at which total revenue changes from what it was before now.  In this case, the additional revenue that the monopolist will get from selling one additional unit is $12.20.  It is the additional revenue that the monopolist gets for the 16th item.

Compute the amount that a $42,000 investment today would accumulate at 11% (compound interest) by the end of 6 years.

Answers

Answer:

FV= $78,557.41

Explanation:

Giving the following information:

Initial investment (PV)= $42,000

Interest rate (i)= 11% = 0.11

Number of periods= 6 years

To calculate the future value (FV), we need to use the following formula:

FV= PV*(1+i)^n

FV= 42,000* (1.11^6)

FV= $78,557.41

dover compnay deposits 30000 with second national bank in an account earning interest at 5% per annum semi annualy. how much will dover have in the account after 5 years if interest is reinvested

Answers

Answer:

$38,402

Explanation:

Calculation for How much will Dover have in the account after five years if interest is reinvested

First step is to use Financial calculator to find

the Future value factor of (2.5%, 10 years)

Future value factor of (2.5%, 10 years)=1.28008

Now let calculate Future value using this formula

Future value = Principal *Future value factor

Let plug in the formula

Future value= $30,000 * 1.28008

Future value=$38,402

Therefore How much will Dover have in the account after five years if interest is reinvested is $38,402

Brace Corporation uses direct labor-hours as the cost driver in its normal costing system. Brace budgeted that it would use 21,600 direct-labor hours during the year. At the end of the year, actual direct labor-hours for the year were 20,400 hours, the actual manufacturing overhead for the year was $506,920, and Brace had $20,440 of underapplied overhead. The budgeted manufacturing overhead must have been: Round to the nearest dollar.

Answers

Answer:

total estimated overhead costs for the period= $515,095.2

Explanation:

First, we need to calculate the allocated overhead:

Under/over applied overhead= real overhead - allocated overhead

20,440 = 506,920 - allocated overhead

allocated overhead= $486,480

Now, we can determine the predetermined overhead rate:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

486,480= Estimated manufacturing overhead rate*20,400

Estimated manufacturing overhead rate= 486,480/20,400

Estimated manufacturing overhead rate= $23.847 per direct labor hour

Finally, the estimated overhead for the period:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

23.847= total estimated overhead costs for the period/21,600

total estimated overhead costs for the period= 21,600*23.847

total estimated overhead costs for the period= $515,095.2

If a trader buys an option at an implied volatility of 10%, and plans to delta hedge it, over the life of the option she hopes realized volatility will be:

Answers

Answer:

b. lower than 10%

Explanation:

Missing word "a. higher than 10%, b. lower than 10%, c. if its three month option then she hopes its 10/3, d. irrelevant where realized will be"

If a trader buys an option at an implied volatility of 10%, and plans to delta hedge it, over the life of the option she hopes realized volatility will be lower than 10%. When hedging implied volatility through delta hedging is done, it means that the trader is expecting that volatility will decline and it has taken the position on the the downside of the implied volatility as it is reflected by the delta hedging. Delta hedging is not about betting on the upside of implied volatility.

right decision in right time get success in our life?​

Answers

Answer:

You are the only person who get's to decide if you are happy or not- Do not put you're happiness into the hands of someone else. Do not make it contingent their acceptance of you, or there feelings for you. At the end of each day , it doesn't matter if someone dislikes you, or if someone doesn't want to be with you. All that matters is that you are happy with the person you are becoming. All that matters is that you like yourself, that you are proud of what you put out into the world. Never forget that you are in charge of you're joy, and of you're worth. You get to be you're own validation. Please never forget that!

Consider an asset with a beta of 1.2, a risk-free rate of 4.4%, and a market return of 12.4%. What is the reward to risk ratio?

Answers

Answer: 8%

Explanation:

Reward to risk ratio = (Expected return - Risk free rate) / Beta

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

= 4.4% + 1.2 * (12.4% - 4.4%)

= 14%

Reward to risk ratio = (14% - 4.4%) / 1.2

= 8%

A short straddle is an appropriate strategy if:________
A. An investor wished to insure against a decline in share values.
B. An investor expected share prices to remain in a trading range.
C. An investor wishes to generate additional income.
D. An investor expected share prices to be volatile.

Answers

Answer:

B. An investor expected share prices to remain in a trading range.

Explanation:

The short straddle strategy can be defined as the one in which the investor expects the stock prices to remain in the trading range, that is, they are the shares that will be traded with prices without change on the maturity date, regardless of whether the quotation at that price action is more valued.

Therefore, this is a strategy that should be used more by investors with more experience in the market, so that the shares chosen to be launched as short traddle are those that will be stable, and thus do not incur on the profitability obtained by selling the shares.

Other Questions
Mary was teased at her old school when she tried to participate in sports so she decided not to play sports at her new school to avoid being teased. This is an example of which psychological approach? behaviorismpsychoanalysishumanismcognitive Just before he died, Johnny told his friends that ???*A. rumbles were wars.B. fighting was useless.C. heaven was a myth.D. death was a riddle. i need help asap please. i really need help. You live in a rural area and don't have a nearby wired network to connect to. What could you use to connect to the Internet? Evaluate the following for when x=54(x-2)(x-3)+7(x-2)(x-5)-6(x-3)(x-5) Which phrase could the expression x-4 represent?a number less than 4the difference of a number and 4the sum of a number and 4four less a number WILL GIVE BRAINLEST PLZ HELP PLZZZZZ In a chemical reaction _________ are the substances present after the reaction?(PLEASE HELP! I NEED TO GET THIS DONE BY 11:00 PM! SOMEONE TELL ME HOW TO GIVE BRAINILIST BEACAUSE THE PERSON THAT GETS THIS I WILL GIVE BRAINALIST! BUT I DONT KNOW HOW TO SO TELL ME PLEASE! HELPPPPPPPPPPPPPPPP!) P.S(sorry about the long yelling and again... im in middle school so I am just going to pick chemistry because I dont know which subject this is, it just says photosynthesis) EC - The ratio of three numbers is 2:7:1.The sum of the numbers is 30. What are thethree numbers? PLZ HELP ASAP WILL MAKE BRAINLIEST FOR THE BEST ANSWRERwhich Venetian explorer's accounts of his travels to Asia encouraged exploration?a) Marco Polob) Giovanni de Verrazanoc) Giovanni Cabotod) Christopher Columbus In 200920092009, Usain Bolt set the world record for sprinting 100 \text{ m}100 m100, start text, space, m, end text in approximately 9\dfrac359 5 3 9, start fraction, 3, divided by, 5, end fraction seconds While printing material from the Internet, Greg used 10 pages of paper from a package of 500 sheets of paper. What percent of the paper did he use? (30) points NEED HELP ASAP What was going on in the US at thetime when Japan was taking part in theNanjing Massacre? Topic: Danger! This mission in mars could bore you to death.A. DIRECTIONS: In each of the following items, think about the meaning of the italicized word or phrase, and then answer the question. 1. If Cora suffers from chronic pneumonia, is it long-lasting or short-lived? Explain. 2. Would you lie down and take a nap if you were bored and looking for outside stimuli? Why or why not? 3. Nick was talking to the teacher about his homework, but subconsciously was thinking about lunch. Was Nick aware of his thoughts regarding lunch? Why or why not? 4. It was excruciatingly awkward when I stood to applaud, not realizing the performance wasnt over. True or false? It was intensely awkward. Explain. 5. If you were subjected to the monotony of watching paint dry, would this be an exciting experience for you? Explain. 6. Would you say that a tsunami is a catastrophic event? Why or why not? Explain. B. WORD STUDY: LATIN PREFIX SUB-: The Latin prefix sub- means under or below. For instance, the word submarine means a watercraft that stays underwater. Below, please give a brief definition of each word and use it in a sentence. 1. submerge: Can anyone help me. !!! I'm too stressed about my coming exam of Physics .... How can I get Stress free ?? HELP plssssssssssssssssssssssss Julie is sliding down the Super Mega Ultra Slide at a local amusement park. She slides at a rate of 8 m/s downward, and after 3 seconds is 5 m off of the ground. Using the equation in slope-intercept form, how many seconds will it take her to slide to the ground from the top? Round your answer to the nearest tenth. * ng Composite FunctionsGiven: f(x) = x - 7 and h(x) = 2x + 3Write the rule for f(h(x)). Write German words where the letter V is said without voice: What is Newton's 1-3rd laws of motion? Give examples for each