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

Answers

Answer 1

Answer:

10.50%

Explanation:

Calculation for Magee's required return

Using this formula

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

Let plug in the formula

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

Required return=4.50%+6%

Required return= 10.50%

Therefore Magee's required return will beb10.50%


Related Questions

four examples of a routine decisions

Answers

Answer:

Give four examples of routine decisions.

...

Novice.

Apprentice.

Master.

Mentor.

Answer:

The four styles of decision making are directive, analytical, conceptual and behavioral. Each style is a different method of weighing alternatives and examining solutions.

Refer to The Call of the Wild to answer the question.

The “call” for Buck to return to the wild is symbolized by which situation for John Thornton?

the flushing of his face from worry
the quest to get to the lost mine
the whispering to his friend for money
the wager on Buck to pull the sled

Answers

Answer:

the quest to get to the lost mine

Explanation:

"The Call of the Wild" is a film based on a novel. It tells the story of a dog named "Buck" whose life transitioned from a pampered life to a sled dog. His past owner was Judge Miller. However, one night, Buck was abducted and brought to Yukon. His life totally changed. He became a sled dog who was in charge of delivering mails under Perrault and Francoise. When the management changed, Buck and the pack were sold to Hal, a mean man who was in search for the lost mine. This mine was rumored to contain bundles of gold, but many people have actually died searching for it.

In the near end of the story, Buck travels with John Thorton in his quest to just live in the wild. However, that quest actually led them to the area where the golds were located. Then Buck met a white wolf, which signaled him to stay in the wild.

Answer:

B. The quest to get to the lost mine

Explanation:

Edge 2020... Correct Answer. I promise!

The year-end balance sheet of Fine Foods Inc. reports operating assets of $4,391 million, operating liabilities of $1,653 million, and total liabilities of $2,494 million.
Fine Food’s average net operating assets are:__________
a. $2,738 million
b. $1,897 million
c. $6,044 million
d. There is not enough information to calculate the amount.
e. $4,391 million

Answers

B is there answer to the question

Which of the following is a tertiary ratio that drives protability?

Answers

Answer:

hope it helps..

Explanation:

Total Assets/Equity. A tertiary ratio that drives profitability.

State the 5 most important banking services and rank them in order that you feel most important.

Answers

Answer:

checking account, savings acc, debit and credit cards, insurance , wealth management

Explanation:

The most important banking services can be as follows:

Account openingCheck issuing facilityLoan facilityIssuing credit or debit cardsInsurance assistance

What is a bank?

The bank is a financial authority that is accountable to the account holders who have opened their accounts in their bank.

Banks provide various types of services which are described as follows:

Banks allowed every individual of a country to open their respective accounts in any bank as per their income source.Banks provided the account holders the permit to issue a check in respect of any transaction in his/her name.They are given loans to the holder at a certain interest rate in accordance with the amount held in their bank accounts.They offer credit or debit cards for making cashless transactions or buying something expensive product in installments.They also provide insurance facilities in collaboration with the insurance company for a time span of some years.

Therefore, the service being provided by banks are explained as above.

Learn more about the banking system in the related link:

https://brainly.com/question/15062008

#SPJ2

Suppose a​ monopoly's price is ​$90.00 and its marginal cost of production is ​$18.00. What is the​ firm's markup? What is the firm's elasticity of demand?

Answers

Answer and Explanation:

The computation is shown below;

Given that

Price = P = $90

And, the Marginal cost = MC = $18

a.

Now the markup would be

= (P - MC) ÷ P

= ($90 - $18) ÷ $90

= $72 ÷ $90

= 0.80

= 80%

Now the monopoly markup is

b.

As we know that

Monopoly, markup = 1 ÷ elasticity of demand(e)

e = 1 ÷ markup

= 1 ÷ 0.8

= 1.25

The absolute value of e would always be negative so e = -1.25

Therefore

The​ firm s price elasticity of demand is -1.25

Ms. Jones deposited $100 at the end of each month for 20 years into a savings account earning 2.1% interest compounded monthly. However, she withdrew $1000 at the end of the sixth year. How much money was in the account at the end of the twentieth year? The total amount of money in the savings account after the twentieth year is $_________Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answers

Answer:

$28,453.02  

Explanation:

Using a financial calculator approach, we can determine the amount in the savings account at the end of year 6 as well as after 20 years as follows:

Balance after 6 years:

PMT=-100(  monthly deposit)

I/Y=2.1%/12( monthly interest rate)

PV=0 (initial balance before 1st deposit is nil)

N=72 (number of monthly deposits in 6 years)

lastly CPT FV=$7,666.13  

Balance after $1000 withdrawal=$7,666.13 -$1,000.00=$6,666.13

Balance after another 14 years(14+6=20)

PMT=-100

I/Y=2.1%/12( monthly interest rate)

PV=-6,666.13(balance after withdrawal in year 6)

N=168 (number of monthly deposits in 14 years)

lastly CPT FV=$28,453.02  

Alma Corp. issues 2,480 shares of $8 par common stock at $16 per share. When the transaction is recorded, credit(s) are made to a.Common Stock $19,840 and Retained Earnings $19,840. b.Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840. c.Common Stock $39,680. d.Common Stock $19,840 and Paid-in Capital in Excess of Par Value $19,840.

Answers

Answer:

b. Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840.

Explanation:

                                         Journal Entry

Particulars                                           Debit             Credit

Cash ($16*2,480)                                $39680

Common stock (2,480 *$8)                                         $19,840

Paid in capital in excess of par value (2,480 *$8)      $19,840

Suppose that you invest $100 today in a risk-free investment with an annual compounding interest rate of 4%. What will be the value of your investment in 4 years?

Answers

Answer:

Value of investment = $117

Explanation:

Given:

P = $100

r= 4% = 0.04

n = 4 years

Computation:

A = P(1+r)ⁿ

A = 100(1+0.04)⁴

A = 100(1.04)⁴

A = 116.9858

A = $117

Value of investment = $117

Inventory records help determine how many items of material, components, and subassemblies need to be ordered to make the final product. Group startsTrue or False

Answers

Answer:

True

Explanation:

An accurate inventory of the record helps us to ensure that you always have the high-demand items on-hand, so that you would never come up short. An accurate inventory record also allows you to follow the sales trends, so that you can differentiate between the fast-moving and the slow-moving products. Keeping reports of the monthly inventory record helps us understand what stocks are doing well, and versus which are just taking up the shelf space. The lack of the right inventory can mean back orders and excess inventory which consequently drive up the costs. Thus, Inventory records help determine how many items of material, components, and sub-assemblies need to be ordered to make the final product.

Maxxie purchased a tract of land for $29,500. Today, the same land is worth $45,100. How many years have passed if the price of the land has increased at an annual rate of 5.7 percent?
a. 6.56 years
b. 5.74 years
c. 6.81 years
d. 7.66 years
e. 6.89 years

Answers

Answer:

n= 7.66 years

Explanation:

Giving the following information:

Present value (PV)= $29,500

Future value (FV)= $45,100

Interest rate= 5.7%

To calculate the number of years, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(45,100/29,500) / ln(1.057)

n= 7.66 years

Clearwater Electronics just hired a new warehouse manager in India. He has several employees who report to him. The HR director will be training the warehouse manager to conduct quarterly performance appraisals and has sent him the performance appraisal form she uses for her own direct reports as a template. However, she has asked him to modify it to better assess the needs of the Indian subsidiary. Why is it important that the warehouse manager make the modifications?


* It is important for the performance appraisal to be consistent among the company subsidiaries. Therefore, the warehouse manager can contact managers in other countries to see what their performance appraisals contain.

* It is important for the performance appraisal to assess performance independent of culture.

* It is important for the performance appraisal to assess competence and contribution to the company, but it is also important for it to be sensitive to Indian norms and values.

Answers

Answer: It is important for the performance appraisal to assess competence and contribution to the company, but it is also important for it to be sensitive to Indian norms and values.

Explanation:

Based on the question, it is important that the warehouse manager make the modifications because it's vital for the performance appraisal to assess competence and contribution to the company, but it is also important for it to be sensitive to Indian norms and values.

It should be noted that the Indians cherish and value their culture a lot, therefore, it is vital that when the performance appraisal form would be sent, it should reflect the values and the norms of the Indians. This will help in them assessing the performance that reflects the culture of the people and takes them into consideration.

Answer:

it b

Explanation:

Donnegan Company reported operating expenses of $325,000 for 2020. The following data were extracted from the company’s financial records: 12/31/19 12/31/20 Prepaid Expenses $ 60,000 $69,000 Accrued Expenses 210,000 255,000 Accounts Payable 300,000 350,000 On a statement of cash flows for 2020, using the direct method, cash payments for operating expenses should be:___________.

Answers

Answer:

cash payments for operating expenses should be $329,000

Explanation:

Cash Payments for operating expenses is included in the Cash Flow from Operating Activity Section of the Statement of Cash Flows when the Direct Method of preparing this statement is selected.

This is calculated as follows :

Cash Payments for operating expenses

Operating expenses                                                               $325,000

Adjustment of changes in Working Capital

Increase in Prepaid Expenses ($69,000 - $ 60,000)              $9,000

Increase in Accrued Expenses ($255,000 - $210,000)        $45,000

Increase in Accounts Payable ($350,000 - $300,000)       ($50,000)

Cash payments for operating expenses                              $329,000

who developed the revealed preference theory?
In economics

Answers

Answer:

In 1938 Samuelson presented revealed preference theory as an alternative to utility theory, while in 1950, Samuelson took the demonstrated equivalence of the two theories as a vindication for his position, rather than as a refutation.

Answer:

Samuelson developed the revealed preference theory.

Which of the following would be disclosed in the summary of significant accounting policies disclosure note? Composition of Long-term debt Depreciation Method A. No Yes B. Yes No C. Yes Yes D. No No

Answers

Answer:

A. No Yes

Explanation:

In the case of long term debt composition, no disclosure note is required as it is not an accounting policy. On the other hand, for depreciation there are various methods to determined it so it would be considered as a significant accounting policy

So according to the options given, the a option is correct as it mets the criteria

And, all other options are incorrect

Which phrase best completes the diagram? Business banks Retail banks ? Accept deposits to checking accounts Make home mortgage loans A. Provide credit and debit cards O B. Offer certificate of deposit investments O C. Require car titles as collateral O D. Provide cash management services​

Answers

The phase that best explains the diagram is that it best provides cash management services​. Thus option D is correct.

what is a management service?

The management service is a practice of outsourcing responsibilities for maintenance and the needs for the arrangement and processes and functions it involves the reduction in budgetary expenditure. The diagram shows us the business and retail bank that accepts deposits and makes home mortgages.

Find out more information about the diagram.

brainly.com/question/12903285

Answer: D

Explanation: I just took the test

A $20,000, 90-day, 8% note payable was issued on November 1, 2015. Using a 360-day year, what is the amount of accrued interest on December 31, 2015?

Answers

Answer:

$267

Explanation:

Calculation for the amount of accrued interest on December 31, 2015

Accrued interest=20,000 x 8% x 60 days/360 days

Accrued interest= $267

Note that November 1, 2015 to December 31, 2015 will gives us 60 days while 360 days represent the number of days in a year

Therefore the amount of accrued interest on December 31, 2015 will be $267

answer plese plese plese plese​

Answers

Answer:

pls yrr sachi pic pa please

Year Year Forward Rate 1 4.6% 2 4.9% 3 5.2% 4 5.5% 5 6.8% What should the purchase price of a 3-year zero-coupon bond be if it is purchased today and has face value of $1,000?A. $966.87.B. $911.37.C. $950.21.D. $956.02.E. $945.51.

Answers

Answer:

no option is correct, since the market value of the bond is $866.32

if the bond matured in 2 years instead of 3, then option B. $911.37 would be correct = $1,000 / [(1.046)x(1.052)] = $911.366 = $911.37

Explanation:

in order to determine the market value of the bond we need to determine the present value of its face value:

market value = PV = future value / [(1 + i₁) x (1 + i₂) x (1 + i₃)]

future value = $1,000

[(1 + i₁) x (1 + i₂) x (1 + i₃)] = [(1 + 4.6%) x (1 + 4.9%) x (1 + 5.2%)] = 1.154311

PV = $1,000 / 1.154311 = $866.32

If the old forecast is 100 and the latest actual demand is 83, what is the exponentially smoothed forecast for the next period?

Answers

Answer: 95.75

Explanation:

Old forecast = 100

Smoothing constant = 0.25

Latest actual demand = 83

New forecast will be:

= smoothing constant × latest demand + (1 - smoothing constant) × old forecast

= (0.25 × 83) + [(1 - 0.25) × 100)]

= 20.75 + 75

= 95.75

can someone please help meeeeeeee

Answers

Answer:

D: ISO 9000

Explanation: Labor Market Conditions, Land, quality-of-life all seem to be factors that do affect location decisions

I hope this helped :)

Is the decision of investing in the stock market rational or bounded rational? Please give logical reasoning to support your answer

Answers

Rational I’m just answering for points I’m frl sure sorry

Manley operates a law practice on the accrual method and calendar year. At the beginning of the year Manley's firm had an allowance for doubtful accounts with a balance of $15,000. At the end of the year, Manley recorded bad debt expense of $23,000 and the balance of doubtful accounts had increased to $18,000. What is Manley's deduction for bad debt expense this year?

a. $23,00
b. $3,000
c. $26,000
d. $5,000
e. $20,000

Answers

Answer:

e. $20,000

Explanation:

The computation of the manley deduction for the bad debt expense is shown below:

= Allowance for doubtful debts + bad debt expense - increased in the balance of doubtful debts

= $15,000 + $23,000 - $18,000

= $38,000 - $18,000

= $20,000

hence, the deduction of Manley for the bad debt expense is $20,000

Therefore the correct option is e.

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

And, the same is to be considered

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

Answers

Answer:

a) true

Explanation:

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

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

Answers

Answer:

Net operating cash flow = $189,250

Explanation:

Particulars                                    Amount$

Net income                                    250,000

Add:depreciation expense           9,500

Add:loss on sale of asset              1,250

Add:increase in salary payable    19,500

Less:increase in prepaid rent       (27,500)

Add:increase in AP                        29,500

Less:increase in inventory            (93,000)

Net operating cash flow              $189,250

You are considering a project with an initial cost of $4,600. What is the payback period for this project if the cash inflows are $450, $970, $2,800, and $500 a year for Years 1 to 4, respectively?a. 1.03 years.
b. 2.36 years.
c. 2.89 years.
d. 3.76 years.
e. 3.81 years.

Answers

The correct answer is C, 2.89 years

Determine the missing amounts. (Round answers to 0 decimal places, e.g. 1,225.)

Unit Selling Price Unit Variable Costs Unit Contribution Margin Contribution Margin Ratio
1. $640 $352 $ (a)$ (b)%
2. $300 (c) $93 (d)%
3. (e) (f) $325 25 %

Answers

Answer:

Selling Price_Variable Costs_Contribution Margin_CM Ratio

1. $640 _________$352 _______$288 __________45%

2. $300_________$207 _______ $93 __________69%

3. $1,300 _______ $975 _______$325 __________25 %

Explanation:

As per given data

Selling Price_Variable Costs_Contribution Margin_CM Ratio

1. $640 _________$352 _______$288 $ ________45%

2. $300_________$207 _______ $93 __________69%

3. $1,300 _______ $975 _______$325 __________25 %

(a)

Unit Contribution margin = Unit selling price - Unit Variable cost

Unit Contribution margin = $640 - $352 = $288

(b)

Contribution margin Ratio = Unit Contribution margin / Unit selling price = $288 / $640 = 0.45 = 45%

(c)

Unit Contribution margin = Unit selling price - Unit Variable cost

$93 = $300 - Unit variable cost

Unit variable cost = $300 - $93 = $207

(d)

Contribution margin Ratio = Unit Contribution margin / Unit selling price = $207 / $300 = 0.69 = 69%

(e)

25 = $325 / Unit selling price

Unit selling price = $325 / 25% = $1,300

(f)

$325 = $1,300 - Unit Variable cost

Unit Variable cost = $1,300 - $325 = $975

what is globalization ?

Answers

Answer:

the process by which businesses or other organizations develop international influence or start operating on an international scale.

Explanation:

Yeah

what is the value of a 1000 dollar investment that loses 5% each year

Answers

Answer:

$663.42

Explanation:

1000(0.95)^8

= $663.42

The deadweight loss caused by a profit-maximizing monopoly amounts to:_________
a. $450.
b. $1,350.
c. $900.
d. $225.

Answers

Answer: $225

Explanation:

Deadweight loss is caused by inefficient allocation of the resources or when both the supply and the demand for a product aren't in equilibrium.

The deadweight loss will be calculated as:

= 1/2 base × height

= 1/2 × 15 × 30

= $225

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