TeleNyckel, Inc. has a beta of 1.4 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 9 percent and the market risk premium is 5 percent, then what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 30 percent

Answers

Answer 1

The firm's after-tax cost of equity capital if the firm's marginal tax rate is 30 percent is: 16.20%. The correct option is D.

The after-tax cost of equity capital can be calculated using the capital asset pricing model (CAPM), which relates the expected return on an investment to its systematic risk, as measured by beta. The formula for the CAPM is:

Expected return = risk-free rate + beta x market risk premium

Using the given values, the expected return for TeleNyckel, Inc. is:

Expected return = 0.09 + 1.4 x 0.05 = 0.16, or 16%

However, this is the pre-tax cost of equity capital. To find the after-tax cost of equity capital, we need to adjust for the firm's marginal tax rate. The formula for the after-tax cost of equity capital is:

After-tax cost of equity capital = pre-tax cost of equity capital x (1 - marginal tax rate)

Plugging in the values, we get:

After-tax cost of equity capital = 0.16 x (1 - 0.3) = 0.112, or 11.2%

Therefore, the firm's after-tax cost of equity capital is 16.20%.

To know more about marginal tax rate, refer here:

https://brainly.com/question/30517250#

#SPJ11

Complete question:

TeleNyckel, Inc. has a beta of 1.4 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 9 percent and the market risk premium is 5 percent, then what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 30 percent:

a. 13.20%

b. 14.20

c. 15.20%

d. 16.20%


Related Questions

Companies can customize online advertising by ________ so that people who log on in different places will see content for local businesses.

Answers

Companies can customize online advertising by geo-targeting so that people who log on in different places will see content for local businesses.

Geo-targeting is a method used by advertisers to display content or advertisements based on the user's geographical location. This ensures that users see relevant and localized content, increasing the chances of engagement and conversion.

1. Collect user location data: The first step is to determine the user's location. This can be done using the user's IP address, GPS data from their device, or through user input.

2. Create localized content: Based on the target audience's location, create content that is tailored to their interests, needs, and preferences. This includes both the advertising message and the accompanying visuals.

3. Set up geo-targeting parameters: Define the specific locations or regions you want to target with your customized advertising. This can be as broad as entire countries or as specific as particular cities or postal codes.

4. Implement the targeting: Incorporate the geo-targeting parameters into your advertising platform or content management system. This ensures that the ads will be displayed only to users within the specified locations.

5. Monitor performance: Regularly analyze the performance of your localized advertising to determine its effectiveness. Adjust your targeting parameters or content as needed to improve engagement and conversion rates.

In conclusion, companies can customize online advertising by using geo-targeting to ensure that users see content for local businesses, making the ads more relevant and effective.

To learn more about advertising, visit: https://brainly.com/question/1658517

#SPJ11

The correlation coefficient between a stock and the market portfolio is 0.6. The standard deviation of return of the stock is 30 percent and that of the market portfolio is 20 percent. Calculate the beta of the stock. Group of answer choices

Answers

The beta of the stock is 1.2

We get from the statement: Beta = 0.6 * (30% / 20%) Beta = 0.9  The beta of the stock is 0.9. Therefore, the correct answer is 0.9.

To calculate the beta of the stock:

You can use the following formula:

Beta = (Correlation Coefficient * Standard Deviation of Stock) / Standard Deviation of Market Portfolio

In this case, the correlation coefficient between the stock and the market portfolio is 0.6, the standard deviation of return of the stock is 30 percent, and the standard deviation of return of the market portfolio is 20 percent.

Step 1: Plug in the given values into the formula:
Beta = (0.6 * 30) / 20

Step 2: Calculate the product of the correlation coefficient and the standard deviation of the stock:
0.6 * 30 = 18

Step 3: Divide the result by the standard deviation of the market portfolio:
18 / 20 = 0.9

So, the beta of the stock is 0.9.

To know more about Beta.

visit:

https://brainly.com/question/6477402

#SPJ11

What is the stage of financing in which the money is provided to entrepreneurs to enable them to implement the idea by funding product research and development

Answers

The stage of financing in which money is provided to entrepreneurs to enable them to implement the idea by funding product research and development is called "Seed Financing".

Seed financing is usually the first round of funding that a startup receives. At this stage, the company is still in the idea or concept phase, and the funds are needed to conduct market research, develop a prototype, and test the product or service. Seed financing is typically provided by angel investors, venture capitalists, or crowdfunding platforms. The amount of money raised during seed financing varies widely, but it is generally a relatively small amount of capital, typically in the range of $50,000 to $2 million. The terms of seed financing are usually less formal and less structured than later rounds of financing, and the investors often take a more hands-on approach to working with the startup. Overall, seed financing is a crucial stage of funding for a startup as it provides the initial capital necessary to begin the journey of turning an idea into a viable business.

Learn more about Seed Financing here:

https://brainly.com/question/28557176

#SPJ11

Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate

Answers

The labor force participation rate is  67.14%.

How to calculate  labor force participation rate

The labor force participation rate is a measure of the proportion of the working-age population that is either employed or actively seeking employment.

It is computed by dividing the labor force (employed + unemployed) by the working-age population and multiplying the result by 100.

As a result, the labor force participation rate is as follows:

(Labor force / Working-age population) x 100

= (141 million / 210 million) x 100

= 67.14%

The labor force participation rate is 67.14%.

Learn more about  labor force participation rate at https://brainly.com/question/24939447

#SPJ1

Consider a portfolio that offers an expected rate of return of 0.07% and a standard deviation of 20%. T-bills offer a risk-free 3% rate of return. What is the maximum level of risk aversion for which the risky portfolio is still preferred to bills

Answers

The maximum level of risk aversion for which the risky portfolio is still preferred to T-bills can be calculated using the concept of the risk premium.

The risk premium is the additional return earned by investing in a risky asset compared to a risk-free asset. In this case, the risky portfolio has an expected rate of return of 0.07% and a standard deviation of 20%, while T-bills offer a risk-free rate of return of 3%.

To calculate the risk premium, we subtract the risk-free rate of return from the expected rate of return of the risky portfolio. In this case, the risk premium is:

Risk premium = 0.07% - 3% = -2.93%

This negative value indicates that the risky portfolio has a lower expected return than T-bills. Therefore, an investor who is completely risk averse would prefer to invest in T-bills instead of the risky portfolio.

However, if the investor is willing to take on some level of risk, they may prefer the risky portfolio if the potential rewards outweigh the risks. The maximum level of risk aversion for which the risky portfolio is still preferred to T-bills can be calculated by dividing the risk premium by the standard deviation of the risky portfolio:

Maximum level of risk aversion = Risk premium / Standard deviation = -2.93% / 20% = -0.1465

This means that an investor with a risk aversion level of -0.1465 or lower would prefer the risky portfolio over T-bills, as the potential rewards of the risky portfolio outweigh the risks.

Learn more about risk premium here:-

https://brainly.com/question/28235630

#SPJ11

What impact does a bargain purchase option have on the present value of the lease payments computed by the lessee

Answers

A bargain purchase option in a lease agreement allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the asset's fair market value. This option can have a significant impact on the present value of the lease payments computed by the lessee.

When a lessee includes a bargain purchase option in their lease agreement, the option to purchase the asset at a discounted price is factored into the calculation of the lease payments. The present value of the lease payments is then adjusted accordingly to account for the option to purchase the asset at a lower price. This adjustment can result in a lower present value of the lease payments for the lessee. This is because the discounted purchase price lowers the overall cost of the lease for the lessee, and therefore reduces the amount of lease payments that must be made to reach the purchase price. However, it's important to note that a bargain purchase option also comes with certain risks for the lessee. If the lessee chooses to exercise the option and purchase the asset at the end of the lease term, they may be responsible for any repairs, maintenance, or upgrades needed to bring the asset up to a usable condition. Additionally, if the asset has significantly depreciated in value, the lessee may end up paying more for the asset than it is worth. In summary, a bargain purchase option can have a significant impact on the present value of lease payments computed by the lessee. While it can lower the overall cost of the lease, it also comes with certain risks that must be carefully considered before including the option in a lease agreement.

to know about bargain purchase visit:

https://brainly.com/question/14983914

#SPJ11

How much more would the account in the previous two exercises be worth if it were earning interest for 5 more years

Answers

the account would be worth $26,532.98 after an additional 5 years of earning interest.

To calculate the new value of the account with an additional 5 years of interest, we can use the future value formula:

FV = PV x (1 + r)^n

Where:

PV = present value = $10,000

r = annual interest rate = 0.05

n = number of years = 15 + 5 = 20

FV = $10,000 x (1 + 0.05)^20

FV = $26,532.98

The future value formula is used to calculate the value of an investment at a future point in time, based on an assumed rate of return. In this case, we are using the formula to calculate the value of the account after an additional 5 years of earning interest.

The formula for future value is FV = PV x (1 + r)^n, where FV is the future value, PV is the present value, r is the annual interest rate, and n is the number of years.

In this case, we know the present value of the account ($10,000), the annual interest rate (5%), and the number of years for the additional period (5 years). We add the previous account period of 15 years to get a total of 20 years.

Plugging these values into the future value formula, we get:

FV = $10,000 x (1 + 0.05)^20

FV = $26,532.98

Learn more about earning interest here:https://brainly.com/question/31112017

#SPJ11

If the anticipated inflation rate is 2 percent and the nominal interest rate is 6 percent, the real interest rate will be: Group of answer choices Negative 4 percent. 2 percent. 8 percent. 4 percent.

Answers

If the anticipated inflation rate is 2 percent and the nominal interest rate is 6 percent, the real interest rate will be 4 percent.

Real interest rate= nominal interest rate - inflation rate

Real interest rate= 0.06 - 0.02

Real interest rate= 0.04 = 4%

Real interest rates are market interest rates that have been adjusted for inflation. In terms of its purchasing power, it represents the value of interest paid on a loan or investment. Investors may face a negative rate of return if inflation is higher than the nominal rate of return on assets. Real interest rate is calculated as nominal interest rate minus predicted or actual inflation.

Usually, the organization backing the loan or investment will make the nominal interest rate public. It is possible to track the changes in the buying power of a particular quantity of capital over time by adjusting the nominal interest rate to account for the impacts of inflation.

Therefore, option D is the correct answer.

Learn more about Inflation here:

https://brainly.com/question/777738

#SPJ1

Stacy is unmarried and has three children, ages 5, 8 and 12, that qualify for the child tax credit. Her AGI for the year 2021 is $97,000. The amount of her child tax credit in 2021 is $

Answers

Stacy's total child tax credit for 2021 is $9,600.

In 2021, the child tax credit is up to $3,600 per child under the age of 6 and up to $3,000 per child between the ages of 6 and 17, subject to phase-out rules based on the taxpayer's income.

The phase-out threshold for a taxpayer with three qualifying children is $200,000 for single filers.

Since Stacy's AGI for 2021 is $97,000, she is below the phase-out threshold and can claim the full amount of the child tax credit. Therefore, her total child tax credit for 2021 will be:

$3,600 for her 5-year-old child

$3,000 for her 8-year-old child

$3,000 for her 12-year-old child

Adding these amounts together, Stacy's total child tax credit for 2021 is $9,600.

To know more about tax credit refer here

brainly.com/question/30565676#

#SPJ11

a. The invention of money is one of the great achievements of humanity, for without it the enrichment that comes from broadening trade would have been impossible. This statement acknowledges that

Answers

The invention of money has had a profound impact on human civilization. Prior to its creation, trade and commerce were limited by the difficulty of exchanging goods and services.

The use of money as a medium of exchange has allowed for a much more efficient and widespread system of trade. With money, people can exchange goods and services without having to barter directly for them. This has allowed for greater specialization of labor and increased efficiency in production.

Moreover, money has made it possible for individuals and businesses to save and accumulate wealth. This has led to the growth of financial systems and institutions, which have further facilitated economic development. However, the creation of money has also had negative consequences, such as inflation and financial instability.

Nevertheless, the overall impact of money on human civilization has been overwhelmingly positive, allowing for greater economic growth and prosperity.

To know more about human civilization visit:

https://brainly.com/question/550178

#SPJ11

Jackson Corporation's bonds have 9 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds have a yield to maturity of 11%. What is the current market price of these bonds

Answers

To calculate the current market price of Jackson Corporation's bonds, we need to determine the present value of the bond's future cash flows, which consist of the coupon payments and the face value (par value) repayment at maturity. Here, we will use the given terms


Par Value = $1,000
Coupon Interest Rate = 10%
Annual Coupon Payment = 10% * $1,000 = $100
Yield to Maturity = 11%
Years to Maturity = 9 years

To find the bond's current market price, we need to calculate the present value of the coupon payments and the present value of the par value repayment.

Present Value of Coupon Payments = (Annual Coupon Payment / Yield to Maturity) * (1 - (1 / (1 + Yield to Maturity)^Years to Maturity))
= ($100 / 0.11) * (1 - (1 / (1.11)^9))
= $909.09

Present Value of Par Value Repayment = (Par Value / (1 + Yield to Maturity)^Years to Maturity)
= ($1,000 / (1.11)^9)
= $424.10

Current Market Price (SOLUTION) = Present Value of Coupon Payments + Present Value of Par Value Repayment
= $909.09 + $424.10
= $1,333.19

The current market price of Jackson Corporation's bonds is $1,333.19.

To know more about Market Price visit:

https://brainly.com/question/13019013

#SPJ11

when a company uses its concert promotion dpearrtment to put on a show then adverties the concert on the compants billboards gives away free tickets on radio statios owned by that company and adverties on the companys television station this is an exmaple of

Answers

This is an example of a company utilizing its main assets (i.e. concert promotion department, billboards, radio stations, and television stations) to promote and advertise a concert.

The main aim is to attract a large audience to the show and generate revenue through ticket sales and other associated merchandise. This type of marketing strategy allows the company to leverage its existing resources to reach a wider audience and create a buzz around the event.

Vertical Integration occurs when a company controls multiple stages of production or service delivery within its own organization. In this case, the company is using its concert promotion department to organize the event, advertising on its own billboards, giving away free tickets through its radio stations, and promoting the event on its television station. By doing so, the company is leveraging its various departments and resources to achieve a common goal, which demonstrates vertical integration.

To know more about  company utilizing  visit :

https://brainly.com/question/15381693

#SPJ11

In using the chase strategy, variations in demand could be met by: Question 1 options: using some combination of inventories, overtime, part-time, subcontracting, and back orders. price adjustments. promotions. varying output during regular time by changing employment levels. varying inventory levels.

Answers

When using the chase strategy, variations in demand can be met by adjusting output during regular time by changing employment levels, using some combination of inventories, overtime, part-time, subcontracting, and back orders.

The goal of the chase strategy is to have production levels match demand as closely as possible, which can require flexibility in the workforce and inventory management.

By adjusting employment levels, companies can increase or decrease output to meet changes in demand, and supplementing with overtime, part-time, or subcontracting can provide additional resources when needed. ]

Additionally, having a balance of inventory levels and back orders can help manage unexpected fluctuations in demand. Overall, a combination of these approaches can be used to ensure the chase strategy is effective in meeting demand.

To know more about chase strategy,refer to the link:

https://brainly.com/question/31643568?#

#SPJ11

Based on the data, a purely competitive firm produce _____ amount of output when the market price is equal to $180.

Answers

The amount of output a purely competitive firm produces at a market price of $180 will depend on the firm's cost structure and the market demand for the product.

To determine the amount of output a purely competitive firm would produce at a market price of $180, we would need additional information such as the firm's cost structure, production function, and market demand. Without this information, it is impossible to provide a specific answer.

In a purely competitive market, firms are price takers, meaning they have no control over the market price and must accept it as given. If the market price is $180 and the firm's marginal cost is less than or equal to $180, then the firm would continue to produce as long as it is profitable.

However, if the market price falls below the firm's average variable cost, then the firm would shut down in the short run. Overall, the amount of output a purely competitive firm produces at a market price of $180 will depend on the firm's cost structure and the market demand for the product.

For more such questions on competitive firm

https://brainly.com/question/31365792

#SPJ11

_________ approach to management was criticized for being too simplistic, believing that a happy worker was a productive worker

Answers

The Human Relations approach to management was criticized for being too simplistic.

The Human Relations approach to management emerged in the 1930s and emphasized the importance of understanding the needs and motivations of workers in order to increase productivity. This approach believed that a happy worker was a productive worker and focused on improving working conditions, providing incentives, and building relationships between management and employees. However, this approach was criticized for being too simplistic and ignoring the complex factors that influence worker productivity, such as job design, technology, and organizational structure.

While the Human Relations approach to management brought attention to the importance of employee well-being, it was ultimately criticized for oversimplifying the factors that influence productivity. Today, management theory has evolved to consider a broader range of factors that contribute to organizational success, including employee engagement, organizational culture, and strategic planning.

To know more about Human Relations, visit;

https://brainly.com/question/1313155

#SPJ11

As specified by the California Insurance Code, under the Facility of Payment clause, a group life insurer may pay to a relative or anyone it deems entitled to the group life benefits in the absence of:

Answers

As specified by the California Insurance Code, under the Facility of Payment clause, a group life insurer may pay to a relative or anyone it deems entitled to the group life benefits in the absence of a designated beneficiary or if the designated beneficiary is deceased.

This clause allows the insurer to make a payment to a person who has a valid claim to the benefits, even if they were not specifically named as a beneficiary. It provides flexibility to the insurer to ensure that the benefits are paid to the appropriate party in a timely manner, without the need for a lengthy legal process to determine who is entitled to the benefits.

As specified by the California Insurance Code, under the Facility of Payment clause, a group life insurer may pay to a relative or anyone it deems entitled to the group life benefits in the absence of a designated beneficiary or a valid assignment of benefits.

This clause enables the insurer to make a payment in good faith to any person appearing to have a valid claim, providing a safeguard for the insurer against any future claims for the same benefits. By following the Facility of Payment clause, the insurer ensures timely and efficient disbursement of group life benefits in cases where a beneficiary or assignment may be unclear or unavailable.

To know more about California Insurance Code, visit:

https://brainly.com/question/14330725

#SPJ11

A buyer is assuming the balance of a seller's mortgage loan. The interest rate is 8%, and the last payment was made April 1, leaving a balance of $18,450. Compute the interest to be paid by the seller if the closing is on April 19.

Answers

The interest to be paid by the seller if the closing is on April 19 is $245. To compute the interest to be paid by the seller, we need to calculate the interest from April 1 to April 19.

First, we need to find the number of days between April 1 and April 19:

April 19 - April 1 = 18 days

Finding the daily interest rate is the next step.

8% / 365 days = 0.022%

Finally, we can calculate the interest by multiplying the daily interest rate by the number of days:

0.022% * 18 days * $18,450 balance = $245

Therefore, the interest to be paid by the seller if the closing is on April 19 is $245.

1. Identify the relevant information: The mortgage balance is $18,450, the interest rate is 8%, and the period to compute interest for is from April 1 to April 19 (18 days).

2. Convert the annual interest rate to a daily interest rate: Divide the annual interest rate (8%) by the number of days in a year (365): Daily interest rate = (8% / 365) = 0.0219178%

3. Compute the daily interest amount: Multiply the mortgage balance by the daily interest rate:

Daily interest amount = $18,450 x 0.0219178% = $4.045

4. Calculate the total interest for the 18-day period: Multiply the daily interest amount by the number of days (18):

Total interest to be paid by the seller = $4.045 x 18 = $84.15

To Know more about amount

https://brainly.com/question/13024617

#SPJ11

If two goods are complements, their cross-price elasticity will be Group of answer choices positive. negative. zero. equal to the difference between the income elasticities of demand for the two goods.

Answers

If two goods are complements, their cross-price elasticity will be negative.

Cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. When two goods are complements, they are typically consumed together, such as hot dogs and hot dog buns. In this case, an increase in the price of hot dog buns would lead to a decrease in the quantity demanded of hot dogs, and vice versa. As a result, the cross-price elasticity of demand between the two goods is negative.

In contrast, if two goods are substitutes, their cross-price elasticity of demand will be positive. This is because an increase in the price of one good will lead consumers to substitute it with a similar, lower-priced alternative.

It is important to note that the magnitude of the cross-price elasticity will depend on the specific goods in question and the availability of substitutes or complements. Additionally, the sign of the cross-price elasticity can have important implications for pricing strategies and market dynamics.

Learn more about cross-price here:-

https://brainly.com/question/14469117

#SPJ11

Janet, president of Glasgow Textiles, just gave the workers in her factory a pep talk. This is an example of ________ communication.

Answers

Janet, president of Glasgow Textiles, just gave the workers in her factory a pep talk. This is an example of downward communication.

Downward communication is a type of organizational communication that flows from higher levels of management to lower-level employees. In this case, Janet, being the president of the company, is at a higher level in the organizational hierarchy, while the factory workers are at a lower level.

The purpose of downward communication is to convey information, directives, and feedback from the management to the employees. In the context of Janet's pep talk, she likely aimed to motivate and encourage the workers, share important information about the company's goals, and provide guidance on their performance.

Downward communication is crucial for maintaining a well-functioning organization, as it ensures that all employees are aligned with the management's vision and expectations. It also fosters a sense of unity, boosts morale, and allows for more effective problem-solving within the workforce. Janet's pep talk serves as a valuable tool in achieving these objectives, by directly addressing her workers and inspiring them to perform at their best.

In conclusion, Janet's pep talk is an example of downward communication, as it flows from a higher level of management (the president) to lower-level employees (factory workers). This type of communication is vital in ensuring that employees are informed, motivated, and aligned with the company's vision and expectations.

Know more about Downward communication here:

https://brainly.com/question/30764316

#SPJ11

The arrangement of jobs into categories, reflecting the importance of the job to the company and the level of skills required, is the ______ structure.

Answers

The arrangement of jobs into categories, reflecting the importance of the job to the company and the level of skills required, is the job structure. This structure is an essential aspect of any organization as it helps in establishing a hierarchy of job positions.

A well-defined job structure assists in creating a clear career path for employees and provides them with a roadmap for their professional growth within the company.

Moreover, it helps in identifying skill gaps and areas where training and development are required to ensure that the employees possess the necessary skills to perform their jobs effectively. The job structure helps organizations systematically classify jobs based on their importance, complexity, and skill requirements, which in turn, assists in determining compensation and career progression opportunities for employees. This classification helps maintain a clear hierarchy, promotes fairness, and encourages employee motivation and satisfaction.Job structures can vary from organization to organization, and they are often influenced by the size, industry, and complexity of the business. For instance, in a small business, the job structure might be simple, with only a few job categories, whereas, in a large organization, the job structure could be more complex, with several layers of job categories.Overall, a well-designed job structure is crucial for any organization as it ensures that job roles and responsibilities are clearly defined, helps in career planning, and provides a structured framework for employee development and training.

Know more about the professional growth

https://brainly.com/question/3656882

#SPJ11

Suppose that the risk-free rate is 5% and the market portfolio has an expected return of 13% with a volatility of 18%. Monsters Inc. has a 24% volatility and a correlation with the market of .60, and beta of 0.80 while California Gold Mining has a 32% volatility and a correlation with the market of -.7 and beta of -1.24. Assume the CAPM assumptions hold. Suppose that Monsters' expected return is 12%. Then Monsters' alpha is closest to:

Answers

The CAPM equation is:

r_i = r_f + beta_i * (r_m - r_f)

r_i = expected return on asset i

r_f = risk-free rate

beta_i = beta of asset i

r_m = expected return on the market portfolio

To find the alpha of Monsters Inc., we can use the CAPM equation and solve for alpha:

alpha = r_i - r_f - beta_i * (r_m - r_f)

We are given:

r_f = 5%

r_m = 13%

sigma_m = 18%

sigma_Monsters = 24%

sigma_CalGoldMining = 32%

rho_Monsters_mkt = 0.60

rho_CalGoldMining_mkt = -0.7

beta_Monsters = 0.80

beta_CalGoldMining = -1.24

r_Monsters = 12%

First, we need to calculate the expected return on Monsters using the CAPM equation:

r_Monsters = r_f + beta_Monsters * (r_m - r_f)

          = 5% + 0.80 * (13% - 5%)

          = 11.2%

Monsters' expected return is 12%, which is higher than its required return of 11.2%. This suggests that Monsters is undervalued by the market, and it has positive alpha.

Next, we need to calculate the expected return on the market portfolio adjusted for Monsters:

sigma_portfolio = sqrt(sigma_m^2 + sigma_Monsters^2 + 2*rho_Monsters_mkt*sigma_m*sigma_Monsters)

               = sqrt(18%^2 + 24%^2 + 2*0.60*18%*24%)

               = 30.163%

beta_portfolio = (beta_Monsters*sigma_Monsters + (r_m - r_f)/(sigma_m^2)) / sigma_portfolio

              = (0.80*24% + 8%/18%) / 30.163%

              = 0.674

r_portfolio = r_f + beta_portfolio * (r_m - r_f)

            = 5% + 0.674 * (13% - 5%)

            = 10.818%

Now, we can calculate the expected return of California Gold Mining using the CAPM equation:

beta_CalGoldMining_adjusted = -beta_CalGoldMining  # invert sign

                           = 1.24

r_CalGoldMining = r_f + beta_CalGoldMining_adjusted * (r_m - r_f)

               = 5% + 1.24 * (13% - 5%)

               = 14.72%

Learn more about market here:

https://brainly.com/question/13414268

#SPJ11

When a subordinate asks for clarification on instructions given by a superior, this is known as _______ commmunication.

Answers

When a subordinate asks for clarification on instructions given by a superior, this is known as Superior-subordinate communication.

The transfer of information is the standard definition of communication. The phrase can either be used to describe the actual message or the area of study that examines these transmissions, known as communication studies. There are various differences of opinion regarding the exact definition of communication, such as whether accidental or unsuccessful transmissions are included and if communication creates meaning in addition to transmitting it.

Communication models seek to give a concise overview of its key elements and how they work together. Many models incorporate the notion that a source use a coding scheme to convey information as a message. The message is transmitted from the source to the receiver via a channel, who must decode it to comprehend what it means.

Learn more about Communication:

https://brainly.com/question/28248138

#SPJ4

Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $6 per share. Assuming that neither firm has any debt before or after the merger, construct the postmerger balance sheet for Firm X assuming the use of purchase accounting.

Answers

By following these steps, you'll have a post-merger balance sheet for Firm X using purchase accounting. The balance sheet will show the combined assets and liabilities of both firms, with an adjustment for the cash payment and goodwill generated from the acquisition.

1. Determine the number of outstanding shares for Firm Y and the purchase price: Multiply the number of outstanding shares of Firm Y by the merger premium of $6 per share to find the total purchase price.

2. Record the cash payment on Firm X's balance sheet: Decrease the cash account on Firm X's balance sheet by the total purchase price.

3. Record the acquisition of Firm Y's assets and liabilities: Add the assets and liabilities of Firm Y to the corresponding accounts on Firm X's balance sheet.

4. Calculate goodwill: Subtract the net assets acquired (Firm Y's total assets minus total liabilities) from the total purchase price. The remaining amount is the goodwill generated from the acquisition.

To know more about acquisition visit:

https://brainly.com/question/15855713

#SPJ11


The choice of how and where to hold idle funds is: Group of answer choices An executive Fed decision. A discount decision. A fed funds decision. A portfolio decision.

Answers

The choice of how and where to hold idle funds is a portfolio decision.

This means that it is up to the individual or entity to decide how they want to allocate their funds based on their own financial goals and risk tolerance.

There are various options for holding idle funds, such as money market accounts, savings accounts, or short-term investments like Treasury bills. The decision on where to hold idle funds can also be influenced by market conditions and interest rates.

It is important to consider factors like liquidity, safety, and return when making a portfolio decision on idle funds. Ultimately, the choice of how and where to hold idle funds is a personal and strategic decision.

To know more on Portfolio decision visit:

https://brainly.com/question/30737900

#SPJ11

Accurate reporting is critical to the accounting profession because many important financial and business decisions are based on financial reports. As such, unethical accounting practices can result in:

Answers

Financial misstatements and fraud, loss of investor confidence, legal and regulatory penalties, and damage to a company's reputation and financial stability.


Financial misstatements refer to incorrect or false financial information reported by a company, which can mislead investors and stakeholders. Fraud refers to intentional deception or misrepresentation of financial information. Loss of investor confidence can occur when investors lose trust in a company's financial reporting and may result in decreased investment or stock prices. Legal and regulatory penalties can include fines or legal action taken against the company or its executives for unethical accounting practices. Damage to a company's reputation and financial stability can occur when investors, customers, and stakeholders lose trust in the company, leading to decreased revenue and difficulty obtaining financing. Ethical accounting practices are critical to maintaining the integrity and transparency of financial reporting, which is essential for the functioning of capital markets and the overall economy.

Learn more about Financial misstatements here:

https://brainly.com/question/28137899

#SPJ11

Given a 2 week lead time, an annual demand of 1050 Doolie Twaddles, 52 weeks per year, a periodic review period of 3 weeks, a safety stock of 25, and a current inventory position of 45,how many Doolie Twaddles should be ordered at the current time

Answers

With the given details of lead time demand, safety stock, and current inventory position, 41 Doolie Twaddles should be ordered at the current time.

1. Calculate the average weekly demand:

1050 Doolie Twaddles per year / 52 weeks per year = 20.19 Doolie Twaddles per week

2. Calculate the lead time demand:

20.19 Doolie Twaddles per week * 2-week lead time = 40.38 Doolie Twaddles

3. Calculate the total demand for the periodic review period:

20.19 Doolie Twaddles per week * 3-week review period = 60.57 Doolie Twaddles

4. Calculate the reorder point:

Lead time demand (40.38 Doolie Twaddles) + Safety stock (25 Doolie Twaddles) = 65.38 Doolie Twaddles

5. Compare the reorder point with the current inventory position:

65.38 Doolie Twaddles (reorder point) > 45 Doolie Twaddles (current inventory position), which means it's time to place an order.

6. Calculate the order quantity:

Total demand for the periodic review period (60.57 Doolie Twaddles) + Safety stock (25 Doolie Twaddles) - Current inventory position (45 Doolie Twaddles) = 40.57 Doolie Twaddles

So, you should order approximately 41 Doolie Twaddles at the current time.

To learn more about inventory, visit: https://brainly.com/question/30531339

#SPJ11

A project that is exceptionally risky might still be undertaken by a firm if they have several other projects underway that are considered more of a sure thing. This approach to project selection is BEST described by the criterion called:

Answers

The approach to project selection that is described in the question is known as the "portfolio approach". This criterion involves assessing and selecting projects as part of a larger portfolio of projects, rather than evaluating each project in isolation.

The portfolio approach recognizes that some projects may be more risky or uncertain than others, but that the risk of the portfolio as a whole can be managed by balancing high-risk projects with lower-risk projects.

By taking on a mix of projects with varying degrees of risk, a firm can spread its resources and increase its chances of success.
In the context of the question, the firm may decide to undertake a risky project if they have other projects underway that are more likely to succeed.

This allows them to balance the risk of the portfolio as a whole, and take advantage of opportunities that might otherwise be too risky to pursue.
Overall, the portfolio approach to project selection is a useful tool for managing risk and uncertainty in project management.

By taking a broader view of project selection and considering the risk of the portfolio as a whole, firms can make more informed decisions and increase their chances of success.

For more such questions on "portfolio approach"

https://brainly.com/question/30822039

#SPJ11

What is the root cause of the problems that Cityside Financial Services are encountering? What needs to change in each organization to address these problems? Should organizations aspire to be culturally diverse and, if so, why?

Answers

The root cause of the problems that Cityside Financial Services are encountering is the lack of effective communication and collaboration between different departments in the organization. As a result, there have been issues with loan processing, customer service, and overall efficiency.Organizations should aspire to be culturally diverse because diversity brings a range of benefits to the workplace, including increased creativity and innovation, better decision-making, and improved customer relations

To address these problems, Cityside Financial Services needs to implement better communication channels and encourage cross-functional collaboration. This can be achieved through regular team meetings, shared goals, and joint training programs. Additionally, the company should invest in technology solutions that promote seamless communication and data sharing.This has led to silos within the company, where departments work independently of each other without proper coordination or sharing of information Organizations should aspire to be culturally diverse because diversity brings a range of benefits to the workplace, including increased creativity and innovation, better decision-making, and improved customer relations.

A diverse workforce also allows for different perspectives and ideas to be brought to the table, leading to more effective problem-solving and improved business outcomes. Furthermore, embracing cultural diversity shows that the organization values and respects differences, which can lead to a more inclusive and positive work environment for all employees.

For more such questions on Financial Services

https://brainly.com/question/29317477

#SPJ11

The concern that an MNE could drive local firms out of business, monopolize the market, and raise prices above those that would prevail in competitive markets is a worry for

Answers

The concern that a multinational enterprise (MNE) could drive local firms out of business, monopolize the market, and raise prices above those that would prevail in competitive markets is a worry for both regulators and consumers.

A multinational enterprise (MNE) is a company that operates in multiple countries and has assets or activities in more than one nation. MNEs are characterized by their ability to leverage resources and capabilities across national boundaries, enabling them to benefit from economies of scale, scope, and learning. MNEs often face unique challenges in managing their global operations, such as navigating different legal and regulatory systems, cultural differences, and currency fluctuations.

Multinational enterprises can be categorized as either decentralized or centralized. Decentralized MNEs allow individual subsidiaries to make their own strategic decisions, while centralized MNEs tend to have a more hierarchical structure, with decisions made at the corporate level. However, MNEs also have the potential to generate significant profits by tapping into new markets and leveraging specialized resources and capabilities.

To learn more about Multinational enterprise visit here:

brainly.com/question/14583851

#SPJ4

An American company buys products in the Brazil in reals for sale in Europe in euros. It does this in fixed-price contracts, three months in advance of delivery. What are this company's currency exposures

Answers

the American company has currency exposures to both the Brazilian real and the euro. The explanation for this is that the company is buying products in Brazil using reals, which means that if the value of the real decreases relative to the dollar (which is what the American company likely uses as its currency), the company will need to spend more

The explanation for this is that the company is buying products in Brazil using reals, which means that if the value of the real decreases relative to the dollar (which is what the American company likely uses as its currency), the company will need to spend more dollars to buy the same amount of reals. This could lead to decreased profits or even losses for the company.

Additionally, the company is selling the products in Europe in euros, which means that if the value of the euro decreases relative to the dollar, the company will receive fewer dollars for each euro it earns. This could also lead to decreased profits or losses for the company.

Overall, the American company has currency exposures to both the Brazilian real and the euro due to its fixed-price contracts for buying and selling products in different currencies.

To know more about Brazilian real , visit:

https://brainly.com/question/31782728

#SPJ11

Other Questions
In nonindustrial societies, the most common way of meeting needs such as resource allocation, law enforcement, and societal functions is through the: Group of answer choices clan system religious system kinship system political system The California Assembly contains _________ members, whereas the California Senate contains _________ members. The endocardium is composed of a ______ squamous epithelium, called an endothelium, and a layer of ______ connective tissue. _____ is an uncertain event that, if it occurs, has a positive or negative effect on project objectives. Calculate the volume of a parallelepiped with sides give as a = ( 7,2 , 4 ) , b = ( 4,7 , 6 ) and c = ( 3,4 , 7 ) A fleet of 16 scrapers is available for a job and the plan is to use tandem pushers and the shuttle loading method. If the expected production of a single scraper is 300 LCY/h and the expected cycle time for a wheeled scraper is 5.9 minute: When planning a well-balanced long hair design, consider the proportional relationships between size, shape, texture and: An amiable incompetent command the British forces in the crimea what feature did Christian basiooac of the 4th or 5th Century have in common with Islamic mosque mosque Many manufacturers allow the maximum brake drum diameter to be ___________________________ over standard size. A metal cools from an initial temperature of 75 oC to 25 oC and releases 66 J of heat energy. If the mass of the metal is 3.0 g, what is its specific heat capacity Which explanation for psychological disorders would suggest that they occur when people have trouble balancing their basic instinctual urges against the demands of society Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as a(n) The name of the atmospheric process that allows certain types of energy to pass through to earth's surface while it traps other types of energy is called the There are n people in a room where n is an integer greater then or equal to 2. Each person shakes hands once with every other person. What is the total number of handshakes in the room Miller Company has old inventory on hand that cost $10. Its scrap value (the value for which it could be sold right now as is) is $15. However, the inventory could be sold for $40 if manufactured further at an additional cost of $5. What should Miller do I can be converted into energy. I am also used to build, maintain and repair body tissues. I am_________. * A hybrid car with a 9.80 gal tank consumes gasoline at a rate of 54.1 miles/gal. How many liters of gasoline will be consumed traveling 132 km When a party expressly declares before the time for performance arrives that the contract will not be performed, such a declaration is called an anticipatory repudiation. True False A monopolistically competitive industry: Multiple Choice Achieves allocative efficiency. Produces the optimal mix of output. Has excess capacity. Uses marginal cost pricing.