Breckenridge, Inc., has a beta of 0.71. If the expected market
return is 11.0 percent and the risk-free rate is 7.0 percent, what
is the appropriate expected return
Answers
The appropriate expected return for Breckenridge, Inc., is 9.84%.
Breckenridge, Inc., has a beta of 0.71. If the expected market return is 11.0 percent and the risk-free rate is 7.0 percent, the appropriate expected return can be calculated using the Capital Asset Pricing Model (CAPM).CAPM is the framework that connects expected returns for individual assets with the expected market return and the risk-free rate. It describes the relationship between systematic risk and expected returns.
The formula for CAPM is as follows:Expected Return = Risk-free Rate + Beta x (Market Return - Risk-free Rate) Where,Expected Return is the return expected from the assetRisk-free Rate is the rate of return on a risk-free investmentBeta is the measure of systematic riskMarket Return is the expected return of the marketGiven,Beta of Breckenridge, Inc = 0.71
Expected market return = 11%Risk-free rate = 7% Substituting the values in the formula we get,Expected Return = 7% + 0.71 x (11% - 7%)Expected Return = 7% + 0.71 x 4%Expected Return = 7% + 2.84%Expected Return = 9.84%Hence, the appropriate expected return for Breckenridge, Inc., is 9.84%.
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Related Questions
Which of the following affects the natural environment negatively?
recycling cans
clothing we buy
production of solar panels
sustainable energy at a power plant
Answers
Answer:
Production of solar panels
Explanation:
In as much as solar panel is a good source of clean and renewable energy , the production processes of solar panels pose a threat to the natural environment.
A major environmental hazard related to the production of solar panel is the emission of greenhouse gas , just as it is in every other production process.
So also , a large no of space is required for the production which can birth environmental degradation and loss of habitat
What is the first step in financial planning?
OA. Analyzing the current situation
B. Identifying goals
C. Coming up with strategies for meeting goals
D.
Assess the advantages and disadvantages of different strategies
Answers
Answer:
A. analyze the current situation!
How do I Identify ways in which local businesses apply the marketing concept domestically and abroad and determine how it affects the business customers?
Answers
Invest in sponsored social media marketing campaigns or run Face-book banner advertising. Retargeting advertising should be used for prospects who have already visited your website. Customers social media contests to attract new clients.
Promote your products on the radio or television. International marketing is vital since it exposes your company to a bigger, global audience. On a brand level, foreign marketing provides opportunities for improved exposure, product awareness, and sales. Local marketing Customers is when you market your business to people within a certain geographical radius, such as those in your neighborhood or city. By focusing on a single area, you can begin to raise awareness of your products and services in the market that is nearest to you.
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Efficiency ratios: Multiple Choice are used to measure how liquid the company is. are used to measure how well the company uses its assets. measure the profits generated by a firm's equity and assets. include the quick ratio, asset turnover ratio, and return on equity.
Answers
Efficiency ratios are used to measure how well the company uses its assets.
Efficiency ratios are financial ratios that assess a company's effectiveness in utilizing its assets to generate sales or profits.
provide insights into the company's operational efficiency and effectiveness. Efficiency ratios evaluate various aspects of a company's operations, such as how quickly it can convert inventory into sales, how effectively it utilizes its assets to generate revenue , and how efficiently it manages its resources. Examples of efficiency ratios include the asset turnover ratio, which measures how efficiently a company utilizes its assets to generate sales, and the return on equity ratio, which assesses the profitability generated by a firm's equity and assets. The quick ratio is a liquidity ratio, not an efficiency ratio, as it measures a company's ability to meet short-term obligations using its most liquid assets.
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Recall the methods of influencing followers discussed in Chapter 13. Which decision making style likely best fits with the influence tactic of collaboration
Answers
The decision-making style that is likely to fit best with the collaboration influence tactic is the behavioral style, which focuses on interpersonal relationships.
In this style of decision making, the leader seeks to positively influence his team through collaboration tactics, as his leadership style is geared towards integration between teams.
The decision-making process takes place in a collaborative search for information and evaluation of employees' reactions to a decision, being able to ask for advice and search for new ideas before making the decision.
Therefore, in the behavioral style, it is more likely to have integration, communication and increased motivation at work, as employees feel valued for being included in important decision-making.
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what is the source of income for the four sectors of the economy
Answers
Answer:
Consumer, Investment, Government, and Foreign.
Explanation:
Consumer:
Personal disposable income
Investment:
Retained earnings
Government:
Indirect business taxes, Corporate income taxes, Social Security contributions, and Individual Income taxes.
Foreign:
No specified source of income but is instead represented by the difference in goods sent abroad and goods purchased from abroad.
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When you finish your budget, you should have:
A: money left over
B: more bills to pay
c: a zero balance
D: All of the choices
Answers
Answer:
Zero balance
Explanation:
Because you finished all your money.
What is a special event that is for people outside a company, such as customers, potential customers, and the public? A. Product launch B. Sales event C. External event D. Internal event
Answers
Answer:
external event
Explanation:
external means outside of
A special event that is for people outside a company, such as customers, potential customers, and the public is an External event. Thus the correct option is C.
What is a Customer?A customer is referred to as an individual who purchases a product or service. He may or may not be the consumer. A consumer refers to a person who utilizes or consume goods and service.
The events which are conducted outside the organization are mainly for Stakeholders of the business who helps the business to grow and by incresing sales.
A group of persons deemed likely to patronize a company is known as the target audience. Similar demographic qualities are present in target audiences. To convince a significant number of people, external events are planned.
Therefore, option C is appropriate.
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. In 2000, KFC® and A&W® restaurants successfully merged because each had a strong
signature product: KFC’s fried chicken and A&W’s root beer floats.
Branding strategy used:
Answers
Explanation:
Co-branding is a form of branding that connects companies together. Essentially, co-branding is a marketing partnership between two or more businesses.
which trade organization is responsible for 90% of the worlds trade ?
The EU
ASEAN
The WTO
NAFTA
Answers
Answer: The WTO
Explanation:
Which of the following statements is true?
A. The GDP gap is the difference between actual real GDP and full-employment real GDP.
B. We desire economic growth because it increased the nation's real GDP.
C. is measured by the annual percentage increase in a nation's real GDP.
D. Discouraged workers are a reason critics say the unemployment rate is understated.
E. All of the above are true.
Answers
The GDP gap is difference between actual GDP and full-employment GDP, We desire growth because it increased nation's GDP, measured by annual percentage increase in nation's GDP" Discouraged workers are a reason critics say unemployment rate is understated. Correct answer is option e
The GDP gap is the difference between actual real GDP and full-employment real GDP. This statement is true because the GDP gap measures the difference between the economy's actual performance and its potential performance when operating at full employment.
We desire economic growth because it increased the nation's real GDP. This statement is true because economic growth improves the overall standard of living, creates jobs, and increases a nation's real GDP. Economic growth is measured by the annual percentage increase in a nation's real GDP. This statement is true because real GDP is adjusted for inflation and allows for an accurate comparison of economic growth over time.
Discouraged workers are a reason critics say the unemployment rate is understated. This statement is true because discouraged workers are individuals who have given up looking for work and are not counted in the official unemployment rate, leading to an understated rate. Correct answer is option e
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Which of the following taxpayers in most likely to have income or loss from a passive activity? Jerald- He is a general partner in a financial planning business, and he manages the day-to-day operations of the business Holly- She in a full-time employee at a limited liability law partnership. Robert- He is a self-employed legal consultant, and he spent 500 hours during the current your doing legal work. He also owns rental property and he spent 900 hours making repairs and management decisions relating to his rental property Judy- She has invested in a limited partnership that designs specialty t-shirts, but she does not actively participate in any business or management activities
Answers
Passive activity is any activity in which the taxpayer does not actively participate.
Taxpayers with passive activities have income or losses that are treated differently than income or losses from non-passive activities. They are generally not fully deductible in the current tax year but are carried forward to future years and used to offset future passive activity income.
The passive activity rules limit the taxpayer's ability to deduct passive activity losses against income from other sources. Judy is most likely to have income or loss from a passive activity. She has invested in a limited partnership that designs specialty t-shirts, but she does not actively participate in any business or management activities.
Because Judy does not actively participate in the business, the partnership's income or loss is considered passive income or loss. As a result, Judy's ability to deduct losses from her investment is subject to the passive activity rules.
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6 major jobs of the federal reserve
Answers
clearing checks
acting as government fiscal agent
supervising members bankers
regulate money supply
supply paper currency
setting reserve requirements
What is characteristic of an organization in which salespeople do most or all of their own marketing?
independent
small size
nonprofit
private
Answers
Answer:
private
Explanation:
people are doing private marketing to earn money for themselves
Which is the best description of a balance sheet? (1 point)
Answers
Answer: the balance sheet is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. Balance sheets can be used with other important financial statements to conduct fundamental analysis or calculate financial ratios.
Why is it important as a consumer to recognize and understand marketing techniques and strategies?.
Answers
Because marketing strategy helps you stay in sync with your customer base, develop the right products for them, and determine how you communicate information about those products.
It's miles, in brief, an action taken to deliver attention to a business's services; they may be physical items on the market or services provided. not unusual examples of advertising at work encompass television advertisements, billboards on the side of the road, and magazine advertisements.
The significance of marketing for your enterprise is that it makes the clients aware of your products or services, engages them, and helps them make the shopping choice. moreover, an advertising plan, part of your marketing strategy helps in developing and keeping demand, relevance, popularity, opposition, etc.
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If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
a. 1.
b. 2.
c. 4.
d. 9.
Answers
The value of the spending multiplier when the marginal propensity to save (MPS) is 0.25 is 4.
What is the value of the spending multiplier when the marginal propensity to save (MPS) is 0.25?The spending multiplier represents the effect of a change in autonomous spending on equilibrium income.
It is calculated as the ratio of the change in equilibrium income to the initial change in autonomous spending.
The formula for the spending multiplier is:
Spending multiplier = 1 / MPS
where MPS is the marginal propensity to save.
If the MPS is 0.25, then the spending multiplier is:
Spending multiplier = 1 / 0.25 = 4
Therefore, for every $1 increase in autonomous spending, the equilibrium income will increase by $4.
This is because the initial spending increase causes a chain reaction of spending as each additional dollar of income is spent and re-spent throughout the economy.
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discussions with the owner-manager of an entity under audit reveal to the auditor that the company is more concerned with minimizing its income tax payments than maximizing income. based on this information, which management assertion will the auditor be most concerned about verifying with regard to sales revenue?
Answers
Given the company's focus on minimizing income tax payments rather than maximizing income, the auditor would be most concerned about verifying the management assertion of completeness with regard to sales revenue.
The management assertion of completeness relates to ensuring that all sales revenue transactions, including those that may be omitted or understated, are recorded and presented in the financial statements. In this case, where the company's priority is to minimize income tax payments rather than maximizing income, there may be a higher risk of management intentionally omitting or understating sales revenue to reduce taxable income.
The auditor would need to pay close attention to the completeness of sales revenue and ensure that all relevant transactions are appropriately recorded and disclosed. This may involve performing detailed tests, such as reconciling sales records with supporting documentation, verifying the accuracy of sales invoices, and reviewing the company's revenue recognition policies and procedures.
By focusing on verifying the completeness assertion, the auditor aims to address the potential risk of unrecorded or understated sales revenue that could impact the accuracy and fairness of the financial statements.
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In what ways can hoodies be disposed of? Explain the transaction records along with the outline for each route brainly
Answers
Hoodies as personal assets can be disposed of in these three ways: trade-in as scrap, de-recognition, outright sale.
The transaction records for each disposal method include removing the cost of the asset from the fixed assets register and its accumulated depreciation, recording the disposal receipts, and computing the profit or loss from the disposal if any.
Thus, for the disposal of hoodies (personal assets), the transaction records remove the cost and accumulated depreciation from the accounts, record the disposal receipts, and compute the profit or loss.
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If Chinwe owes $2,164.00, what would her quarterly payments be?
Answers
Answer:
$541.00
Explanation:
2164 / 4 = 541
Based on the calculation, Chinwe's quarterly payment would be equal to $541.00.
What is a quarterly payment?A quarterly payment can be defined as a cumulative total of monthly payments that are made by an individual or business organization, four (4) times in a year or an annual basis. This ultimately implies that, a quarterly payment would be paid in four (4) installments only.
Given the following data:
Debt = $2,164.00.
Quarterly payment = 2,164.00/4
Quarterly payment = $541.00.
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Is A the actually answer?
Answers
What kind of money is a gold certificate considered to be?commodityfiatrepresentativecurrency
Answers
A gold certificate is considered to be a representative currency. This means that it represents a certain amount of physical gold that is held by the issuing authority, such as a government or a central bank. The value of a gold certificate is therefore linked to the value of the underlying gold reserves.
Unlike fiat money, which is not backed by a physical commodity and is only valuable because the government declares it to be so, a gold certificate derives its value from the intrinsic value of gold itself. This makes it a more stable form of currency, as the value of gold tends to be less volatile than that of fiat money.
In the past, gold certificates were commonly used as a form of currency, particularly during the gold standard era when many countries pegged their currency to the value of gold. Today, gold certificates are less commonly used and have been largely replaced by other forms of currency, but they remain an interesting historical artifact and a reminder of the important role that gold has played in the history of money and finance.
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What is the structure of Public corporation
Answers
Public corporate structures are managed by a board of directors. The members of the board are from all walks of industry and commerce. The chairmen of these corporations are appointed by the government. The entire capital is financed by the government.
Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.
Answers
Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, $15,000,000
To Bonds payable $15,000,000
(Being issue of bonds is recorded)
2. Interest expense on bonds Dr, $675,000
To cash $675,000 ($15,000,000 × 9% × 6 ÷ 12)
(Being payment of interest is recorded)
3. Bonds payable Dr, $15,000,000
To Gain on redemption of bonds $600,000
To Cash ($15,000,000 × 0.96) $14,400,000
(Being redemption on bonds is recorded)
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which country is experiencing a trade surplus?
o a. a country with $330 million in exports and $350 million in
imports
b. a country with $400 million in exports and $500 million in
imports
c. a country with $500 million in exports and $400 million in
imports
d. a country with $600 million in exports and $600 million in
imports
Answers
A country that is experiencing a trade surplus is a country with $500 million in exports and $400 million in imports.
What is trade surplus?Trade surplus refers to the positive balance of trade where a country's exports exceed its imports.
The country that is experiencing a trade deficit is a country with $500 million in exports and $400 million in imports.
Therefore, C is the correct option.
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our self-talk consists of words pictures and emotions. as we imprint our affirmations we
Answers
Self-talk is your inner voice or the way you speak to yourself. Although you almost probably are doing it without realizing it, you almost certainly are. In order to produce an internal monologue throughout the day, this inner voice mixes conscious thoughts with ingrained beliefs and biases.
What are the four categories of self-talk?Your inner discourse is known as self-talk.
Personalizing. You own all of the guilt for yourself.
Magnifying.
Catastrophizing.
Polarizing.
What are the five tiers of one's own self-talk?Helm Stetter outlines the "Five Levels of Self-Talk" (Negative Acceptance, Recognition and Need to Change, Decision to Change, The Better You, and Universal Affirmation) and offers advice on how to navigate each level for significant life changes.
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Suppose a bank has excess reserves of $50 and the reserve ratio is 20%. If Andy deposits $5,000 of cash in his checking account and the bank lends $2,500 to Molly, the money supply.
A. Is increased by $7,500
B. Is increased by $2,500
C. Remains unchanged
D. Is decreased by $5,000
B. Is increased by $2,500 (same amount as loans)
Answers
Suppose a bank has excess reserves of $50 and the reserve ratio is 20%. If Andy deposits $5,000 of cash in his checking account and the bank lends $2,500 to Molly, the money supply : B) Is increased by $2500.
Excess Reserves:Reserves are the minimum amount of cash a financial institution needs to meet central bank requirements. This is a real bank note that the bank must keep in a local vault or central bank account. Cash reserve requirements are designed to ensure that any bank can meet large and unexpected withdrawal needs.
In the United States, the Federal Reserve Board mandates the amount of cash (reserve ratio) that all banks must hold. Historically, reserve ratios have ranged from zero to 10% of bank deposits.
Reserve ratio:A reserve ratio is the portion of a reserve able liability that a commercial bank must hold instead of lending or investing. This is a requirement set by the country's central bank (the Federal Reserve in the United States). Also called cash reserve ratio.
Money Supply:Money supply includes all currencies and other liquid instruments in a country's economy as of the measurement date. Broadly speaking, the money supply includes both cash and deposits, and can be used just as easily as cash.
The government combines the Central Bank and the Treasury to issue banknotes and coins. Banking regulators influence the amount available to the public by requiring banks to hold reserves, loans, and other financial matters.
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which wheel settings change when you mount the subframe incorrectly in the transverse direction? Check all that apply
TOE
CAMBER
STEERING AXIS INCLINATION (SAI)
CASTER
Answers
The wheel settings that change when you mount the subframe incorrectly in the transverse direction is "CASTER" (Option D)
What is Caster?Caster is the process of aligning a wheel with the direction of travel, which can be performed by caster displacement or caster angle. As with the front wheels of a shopping cart, caster displacement shifts the steering axis forward of the axis of wheel rotation. The steering axis is moved away from the vertical by the caster angle.
The caster angle, also known as the castor angle, is the angular displacement of the steering axis from the vertical axis of a steered wheel of a car, motorbike, bicycle, another vehicle, or watercraft as seen from the side.
Positive caster enhances the responsiveness of your vehicle while negotiating bends and the stability of your car when going at greater speeds. The sole disadvantage of a positive caster is that it increases the amount of effort required to steer your car.
Turning plates and a digital or bubble camber/caster gauge are the two most common methods for measuring caster angles. Measuring the upper and lower wishbone mounting points or the MacPherson strut angle.
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Employment agencies often specialize in number of fields and their job is to screen candidates which help increasing burden on the company's administrative burden of recruitment. O TRUE FALSE The hiring process begins with developing the job requirements and ends when a job offer is made. TRUE FALSE The hiring process begins with developing the job requirements and ends when a job offer is made. O TRUE O FALSE
Answers
The statement is true. The hiring process begins with developing the job requirements and ends when a job offer is made.
The given statement, "Employment agencies often specialize in a number of fields, and their job is to screen candidates, which helps increase the burden on the company's administrative burden of recruitment" is true.
It is a correct statement regarding the working of employment agencies.
They specialize in a number of fields and assist companies in selecting and screening candidates.
Employment agencies save time and effort by matching candidates to the requirements of the company, thus eliminating the need for company staff to engage in recruitment.
They provide trained and qualified candidates for job vacancies.
So, the given statement is true.
The statement "The hiring process begins with developing the job requirements and ends when a job offer is made" is also true.
The hiring process consists of many stages, such as job analysis, and recruiting.
So, the statement is true. The hiring process begins with developing the job requirements and ends when a job offer is made.
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zhang industries is preparing a cash budget for june. the company has $29,000 cash at the beginning of june and anticipates $97,000 in cash receipts and $121,290 in cash payments during june. the company has no loans outstanding on june 1. compute the amount the company must borrow, if any, to maintain a $22,000 cash balance.
Answers
Zhang Industries must borrow $17,290 to maintain a $22,000 cash balance at the end of June. To compute the amount Zhang Industries must borrow, if any, to maintain a $22,000 cash balance, we need to consider the following terms: beginning cash balance, cash receipts, cash payments, and required cash balance.
Here is the step-by-step explanation:
1. Calculate the total cash available in June:
Total cash available = Beginning cash balance + Cash receipts
Total cash available = $29,000 + $97,000
Total cash available = $126,000
2. Calculate the cash deficit or surplus at the end of June:
Cash deficit/surplus = Total cash available - Cash payments
Cash deficit/surplus = $126,000 - $121,290
Cash deficit/surplus = $4,710
3. Calculate the amount the company must borrow, if any, to maintain a $22,000 cash balance:
Required borrowing = Required cash balance - Cash deficit/surplus
Required borrowing = $22,000 - $4,710
Required borrowing = $17,290
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