iv. If the market expects a return of 21.2 percent
from stock X, what is its beta?
s. A project will require an investment in a new asset
of 10,000 dollars. It will be used on a project for
four years after which it will be disposed of on the
final day of year 4. Tax is payable at 30% on the
same year and capital allowances are available at
25% reducing the balance. The net operating cash
flows from the project are expected to be 4,000
dollars per annum. The company's cost of capital
is 30%. Ignore inflation
¿ Calculate the written down allowance and hence
the tax savings for each year if the proceeds on
disposal of the asset are 2, 500 dollars
. Identify the free cash flows for the project and
calculate its net present value
Answers
The beta of stock X cannot be determined without additional information such as the risk-free rate and market risk premium. For the project's financial analysis, the written down allowance would be $2,500 per year (25% of $10,000), and the tax savings for each year would be the written down allowance multiplied by the tax rate (30%). To calculate the project's net present value, the net operating cash flows of $4,000 per annum should be discounted using the company's cost of capital (30%), and the NPV can be determined by subtracting the initial investment from the sum of the discounted cash flows.
To calculate the beta of stock X, we need additional information. The expected return alone is not sufficient to determine the beta. Beta is a measure of the systematic risk of a stock in relation to the overall market. It indicates how the stock's price is likely to move in response to changes in the market.
To calculate beta, we need the expected return of the market (usually represented by a market index), as well as the covariance between the returns of stock X and the market, and the variance of the market returns. With this information, we can use the formula:
Beta = Covariance(stock X returns, market returns) / Variance(market returns)
Without the necessary data on market returns and the covariance, we cannot determine the beta of stock X.
Regarding the project investment, tax savings, and net present value (NPV), let's calculate them based on the provided information:
1. Written Down Allowance and Tax Savings:
- Year 1: Written Down Allowance = $10,000 * 25% = $2,500. Tax Savings = $2,500 * 30% = $750.
- Year 2: Written Down Allowance = ($10,000 - $2,500) * 25% = $1,875. Tax Savings = $1,875 * 30% = $562.50.
- Year 3: Written Down Allowance = ($10,000 - $2,500 - $1,875) * 25% = $937.50. Tax Savings = $937.50 * 30% = $281.25.
- Year 4: Written Down Allowance = ($10,000 - $2,500 - $1,875 - $937.50) * 25% = $703.13. Tax Savings = $703.13 * 30% = $210.94.
2. Free Cash Flows:
- Year 1 to Year 4: Net Operating Cash Flows = $4,000 per annum.
3. Net Present Value (NPV):
Using the company's cost of capital of 30%, we discount the cash flows from Year 1 to Year 4 and subtract the initial investment of $10,000.
NPV = (Year 1 Cash Flow / (1 + Cost of Capital)^1) + (Year 2 Cash Flow / (1 + Cost of Capital)^2) + (Year 3 Cash Flow / (1 + Cost of Capital)^3) + (Year 4 Cash Flow / (1 + Cost of Capital)^4) - Initial Investment
Please provide the cash flows for each year (beyond Year 1) to calculate the NPV accurately.
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Related Questions
Autocratic leadership is likely to be effective when.
Answers
Autocratic leadership is likely to be effective when control is
needed or in an emergency situation.
What is Autocratic leadership?This type of leadership involves total control over decisions and
little input from others.
This is used in situations whereby there is a need for quick
action or decision to be taken and no room for meetings. This is
common during emergencies and situations which require
absolute control.
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Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 26,517 $ 30,075 $ 31,325 Accounts receivable, net 75,332 54,780 42,628 Merchandise inventory 96,629 73,097 47,247 Prepaid expenses 8,286 7,895 3,516 Plant assets, net 238,225 217,764 201,484 Total assets $ 444,989 $ 383,611 $ 326,200 Liabilities and Equity Accounts payable $ 110,802 $ 64,830 $ 44,350 Long-term notes payable 83,658 86,466 73,532 Common stock, $10 par value 162,500 163,500 163,500 Retained earnings 88,029 68,815 44,818 Total liabilities and equity $ 444,989 $ 383,611 $ 326,200 For both the current year and one year ago, compute the following ratios: Exercise 17-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable?
Answers
Answer:
hello
Explanation: the awnser is tooooo long! sorry...
I am working on a new app what should i do should i call it, its a app to make new friends and not be lonely
Answers
Answer:
oh i will be your friend
Explanation:
The Architecture and Construction career cluster is a group of careers focused on designing, constructing, and maintaining buildings and other structures. assembly of buildings and structures. designing and planning buildings. identifying the safety standards for building regulations.
Answers
The Architecture and Construction career cluster is a group of careers focused on designing, constructing, and maintaining buildings and other structures. Hence, option A is appropriate.
What are Architecture and Construction?Architecture, as opposed to construction-related abilities, is the art as well as the technique of building and designing. Buildings and other structures are created through the processes of drawing, conceiving, planning, designing, and building.
A competent professional, an architect, is responsible for the planning, design, and Construction of buildings. In both the science and art of building design, architects receive extensive training. Architects are required to hold a professional license since they are in charge of the tenants' safety in the buildings they design.
Construction is a general term that describes the art and science of creating objects, systems, or organizations. It is a combination of Latin construction and also Old French construction. The noun "construction" describes the type of building projects or the qualities of a structure, whereas the verb "to construct" relates to the act of building.
Construction, sometimes known as "building construction," refers to the methods as well as the business associated with assembling but also erecting structures, primarily those that serve as homes.
Hence, option A is correct.
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15 $ x 140 hours a month
Answers
140 x 15 = 2100
Then work it into the problem
15 × 140 × 12
= $ 25200
IT IS 15 TIMES THE HOURS TIMES THE MONTHS SINCE THERE ARE TWELVE MONTHS
Salma got a prepaid debit card with $20 on it. For her first purchase with the card, she bought some bulk ribben at a craft store. The price of the nbbon was 17 cents per yard. If anee that purchase there was $11.84 left on the card, how many yards of nbbon did Saima buy?
Answers
Salma bought approximately 48 yards of ribbon.
Salma started with a prepaid debit card containing $20. After making her first purchase, there was $11.84 left on the card. By subtracting the remaining balance from the initial amount, we find that she spent $8.16 on the ribbon. Since the price per yard of ribbon was $0.17, we can divide the amount spent by the price per yard to determine the number of yards bought, which is approximately 48 yards. Salma purchased bulk ribbon from a craft store using a prepaid debit card with an initial balance of $20. After the purchase, the remaining balance on the card was $11.84. To calculate the number of yards of ribbon she bought, we subtracted the remaining balance from the initial balance, which gave us $8.16. Since the price per yard of ribbon was 17 cents, we divided the total amount spent ($8.16) by the price per yard (17 cents) to find that Salma bought approximately 48 yards of ribbon.
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The number of newspapers sold on May 30 would be kept in a ____________ field. date
numeric
text
key
Answers
The number of newspapers sold on May 30 would be kept in a b) numeric field.
In the field of computers, a numeric field can be described as such a field in an excel sheet where only numbers are put. This is done so that calculations can be performed by using these numbers.
On May 30, newspapers were sold in large numbers. To keep track of this data, a numeric field will be created to store the exact number of newspapers sold that day. Hence, option b is correct.
This data can be used to compare newspaper sales on different days, as well as to assess trends in the newspaper market.
The question will correctly be written as:
The number of newspapers sold on May 30 would be kept in a ____________ field.
a) date
b) numeric
c) text
d) key
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rom time to time, some of the activities within the eight major functions of marketing are eliminated to provide for a more effective marketing process
Answers
False in order to create a more efficient marketing process, certain of the operations within the eight core elements of marketing are deleted.
Which definition of marketing suits it the best?Marketing refers to the activities a company carries out to promote the acquisition or selling of a product or service. Marketing includes everything associated with promoting, marketing, and shipping packages to clients or other business. Affiliates carry out some marketing for a business.
Who originally defined marketing?Marketing, according to Doctor Keller, is "fulfilling your demands of the customer at a profit." That concept goes beyond simply discussing product information in my opinion. 360-degree experiences are the responsibility of the marketer.
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The correct question is-
From time to time, some of the activities within the eight major functions of marketing are eliminated to provide for a more effective marketing process. T/F
Morton’s steakhouse utilized a(n) ________ crm system to surprise a customer with a meal.
Answers
Morton’s steakhouse utilized a social CRM system to surprise a customer with a meal.
What do you mean by social CRM system?Here are some instances of Social CRM in use and some of its advantages: A firm or even a customer makes a fan page for your business or item. Fans are people who support your brand and the way you conduct business, and they provide a platform for marketing, networking, and communication.
With the aim of encouraging engagement in the business process, social CRM is a business strategy that comprises the expansion of marketing, sales, and customer support operations to incorporate the active participation of clients or visitors to an Internet channel.
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Any point inside a production possibilities curve is:_____.
A. better than points on the production possibilities curve.
B. allocatively efficient but technologically inefficient.
C. associated with inefficient use or unemployment of some resources.
D. associated with movements along the production possibilities curve.
E. associated with constant opportunity costs.
Answers
Answer:
c
Explanation:
Differentiate wealth-creating venture from income-generating venture.
Answers
Answer:
Explanation:
A wealth creating venture is expected to produce a return over a longer time span. Let’s say that the venture is expected to lose money for 5 years and then generate significant returns in year six. Over a ten year span, it might be very profitable. But if you are expecting to live off the proceeds starting on day one then you have a problem.
An income generating venture is expected to become cash-flow positive much sooner. A self-funding entrepreneur is likely to desire an income generating venture unless they are very wealthy. A venture backed business allows for a longer timeframe to accrue value.
You are the manager of a project that has an operating leverage rating of 2.8 and a required return of 14 percent. Due to the current state of the economy, he expects sales to decrease by 7 percent next year. What change should you expect in operating cash flows next year given your sales forecast?
Answers
Answer:
The change should you expect in operating cash flows next year would be 19.60%
Explanation:
In order to calculate the change should you expect in operating cash flows next year given your sales forecast we would have to make the following calculation:
change should you expect in operating cash flows=operating leverage rating*percentage of decrease sales next year
change should you expect in operating cash flows=2.8*0.07
change should you expect in operating cash flows=19.60%
The change should you expect in operating cash flows next year would be 19.60%
Layne Corporation had the following information in its financial statements for the years ended 2014 and 2015:
Cash dividends for the year 2015 $ 12,000
Net income for the year ended 2015 115,000
Market price of stock, 12/31/14 10
Market price of stock, 12/31/15 12
Common stockholders’ equity, 12/31/14 1,600,000
Common stockholders’ equity, 12/31/15 1,980,000
Outstanding shares, 12/31/15 180,000
Preferred dividends for the year ended 2015 15,000
What is the payout ratio for Layne Corporation for the year ended 2015?
a. 30.1%
b. 18.1%
c. 14.7%
d. 12.0%
Answers
The payout ratio for Layne Corporation for the year ended 2015 is 12%, which corresponds to option d.
The payout ratio is calculated by dividing the total dividends paid to common shareholders by the net income. In this case, the cash dividends for the year 2015 were $12,000, and the net income for the year ended 2015 was $115,000.
Payout Ratio = (Dividends / Net Income) * 100
Payout Ratio = ($12,000 / $115,000) * 100 = 10.43%
However, the preferred dividends of $15,000 need to be deducted from the net income before calculating the payout ratio for common shareholders.
Adjusted Net Income = Net Income - Preferred Dividends
Adjusted Net Income = $115,000 - $15,000 = $100,000
Payout Ratio = (Dividends / Adjusted Net Income) * 100
Payout Ratio = ($12,000 / $100,000) * 100 = 12%
Therefore, The correct answer is c. 14.7%.
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At what rate per cent per annum will 4000 yield an interest of 410 in 2 years?
Answers
Answer:
5%
Explanation:
The applicable formula is A = P( 1 + r) ^ n
where A= amount: P is the principal, r, interest rate, n time
In this case,
A = principal + interest = Rs 410 { Rs 4000 + Rs410}
P= Rs 4000
r= ?
n= 2
r is?
4410 = 4000(1 + r) ^2
(1 + i)^ 2 = 4410/4000
(1 + i)^ 2 = 1.1025
1 + i = √1.1025
1 + i = 1.05
i = 1.05 - 1
i = 0.05
0.05 × 100 = 5%
Air max 270's or Jordan 1 Mid's?
Answers
Air max 270's
they make me taller than Jordan 1 Mid's, and since im a short dude, I lowkey need that extra inch.
describe the fair debt collection act and the federal truth in lending act as they apply to collections
Answers
The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates the actions of third-party debt collectors.
It prohibits them from using abusive, deceptive, or unfair practices when attempting to collect a debt. This includes actions such as contacting a debtor at inconvenient times or places, using profanity or threats, or misrepresenting the amount owed or the consequences of non-payment.
Debt collectors must also provide written notice within five days of their initial communication, including the amount of the debt, the name of the creditor, and the debtor's right to dispute the debt. The Federal Truth in Lending Act (TILA) requires lenders to disclose the terms and conditions of a loan or credit agreement to borrowers.
This includes the annual percentage rate (APR), finance charges, and any fees associated with the loan. TILA also requires lenders to provide borrowers with a written notice of their right to cancel certain types of loans within three days of signing the agreement.
These disclosures help ensure that borrowers understand the true cost of borrowing and can make informed decisions about their finances. When it comes to collections, both the FDCPA and TILA provide important protections for consumers.
By regulating the actions of debt collectors and requiring lenders to disclose the terms and conditions of loans, these laws help ensure that borrowers are treated fairly and can make informed decisions about their finances.
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what is the mathematical specification of the demand for money function in liquidity preference?
Answers
The mathematical specification of the demand for money function in liquidity preference is Md = L (Y, r).
The mathematical specification of the demand for money function in liquidity preference
The demand for money function in liquidity preference is a relationship between the demand for money and the interest rate. The demand for money function shows the amount of money people want to hold in terms of the interest rate. The mathematical expression of the demand for money function in liquidity preference is as follows:
Md = L (Y, r)
Where, Md represents the demand for money,
L represents the liquidity function
Y represents the level of income, and
r represents the interest rate.
The demand for money is inversely related to the interest rate. When the interest rate is high, the demand for money is low, and when the interest rate is low, the demand for money is high.
In conclusion, the mathematical specification of the demand for money function in liquidity preference is shown by the equation Md = L (Y, r)
where Md represents the demand for money, L represents the liquidity function, Y represents the level of income, and r represents the interest rate.
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Which of the following is NOT a characteristic of population?
O The people in the group being investigated
O The group from which the sample comes
O The people who are actually measured
O The general population of a segment such as students, voters, etc.
Answers
Answer:
The people who are actually measured
Explanation:
A population is the whole group you want to study while a sample is the group chosen to partake in the study or experiment.
For example you want to carry out a study on the spending habits of millennials in the world. It is impossible to contact all the millennials in the world. The reasonable step would be to choose a sample of the people that would be representative of all the millennials in the world.
Here the population are millennials. while the representative population chosen to represent millennials are the sample
The employee credit union at State University is planning the alscation of funds for the coming year, The credit union makes four types of loans to its menbers. In adaition, the credit inion invests in rick-free securives to stabilize income. The various revenue-producing investments together wath annual rates of return are as follows. The creoit union will have 52,400,000 avalable for investment during the coming yeir, state laws and credit union pelcles unpose the follswing restrietions an the comgosition of the jaans and investments. - Ruskfree securites may not exceed 30 of the total funds tvailable for livestment. - Signature loons may not erceed 10% of the funds invested in all foans (outemoble, fumiture, other secured, and algnature loans). - Fumiture loans plus other secured loans may not exceed the automsele loans. - Other tecured loans plus signature loans may not exceed the funds uvested in risivfree securities. How should the 12.400,005 be allocated to each of the loanimestent alternatives to mavimizo total annual retum? What is the projected cotal annual return?
Answers
To maximize the total annual return, the allocation of the $52,400,000 should be as follows: $15,720,000 in risk-free securities, $10,480,000 in automobile loans, $9,936,000 in furniture loans, $6,976,000 in other secured loans, and $8,288,000 in signature loans. The projected total annual return will depend on the specific rates of return associated with each investment option.
How can the funds be allocated to meet the given restrictions?To determine the optimal allocation, we need to consider the restrictions imposed by state laws and credit union policies. We start by allocating 30% of the total funds, which amounts to $15,720,000, to risk-free securities. Next, we allocate $10,480,000 to automobile loans, ensuring that the combined amount of furniture loans and other secured loans does not exceed this value.
Moving on, we allocate $9,936,000 to furniture loans, keeping in mind that the sum of other secured loans and signature loans should not exceed the funds invested in risk-free securities. Finally, we allocate $6,976,000 to other secured loans and $8,288,000 to signature loans, while adhering to the aforementioned restrictions.
By following this allocation plan, we can maximize the total annual return on the available funds. The specific rates of return associated with each investment option will determine the projected total annual return, which can be calculated by multiplying the allocated amounts by their respective rates of return and summing them up.
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Which of the following is not a form of business combination?: (A) Acquisition. (B) S Corporation. (C) Conglomerate. (D) Merger.
Answers
Answer:
b.corporation is answerDavid has just joined a new company. His employer offers a number of different insurance policies as one of its employee benefits. For example, his employer’s (1) insurance covers prescription drugs and immunizations. David will also be receiving (2) insurance at no cost from his employer.
Options for 1: casualty, health, life
Options for 2: automobile, disability, renters
Answers
Answer:
Health; automobile.
Explanation:
In Insurance, risk tolerance refers to the willingness of an individual or organization to take a risk in business transactions in order to get a potentially positive reward.
Simply stated, risk tolerance in insurance is the willingness of an insured individual to increase his or her Self-Insured Retentions (SIRs) or deductibles by the insurer. For instance, the high risk associated with investments such as stocks, high-yield bonds, is often perceived by investors to be worth the higher reward such investment brings.
Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.
This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.
In this scenario, David has just joined a new company. His employer offers a number of different insurance policies as one of its employee benefits. For example, his employer’s health insurance covers prescription drugs and immunizations. David will also be receiving automobile insurance at no cost from his employer.
Answer:
Health and Disablilty
Explanation:
I just took the test
On a demand graph, 'price' is on the Y-axis,
and 'quantity' is on the X-axis. When a
consumer is making more money, how does
the demand curve shift?
A. shifts to the right
B. shifts to the left
C. shifts up
Answers
Answer:
A
Explanation:
When the price of a commodity decreases, there will be increase in demand, and this will amount to more money for a consumer. and when this happen, the law of demand will be expressed in a way that the demand curve will move upward from right to left.
15. Why is unemployment a closely watched figure by the government?
16. Briefly explain the connection between a person’s level of education and his or her potential for employability and earnings.
Economics
Answers
If the employment rate is high then the economy is booming, the standard of living is high and the spending and output in the economy is high.
An individuals level of education can negatively or positively impact their employability and earnings. A person with higher education and experience is mostly likely to be faster employed and receive higher earnings in comparison to a person with lower education and experience.
Which defines a w-4?
Answers
W-4 is a type of certificate that is used while hiring an employee.
W-4 is a type of certificate that is used while hiring an employee. This form tells multiple information about the employee like deductions, amounts of credit, job adjustments, etc.
It includes worksheets to help with the adjustments of the employee.Employees' status of fillingIt can be used to calculate employee's income taxIf an employee cannot fill and give this form he or she may get deductions in their wages. An employee can also change the details supplied by him due to various reasons or depending upon his or her financial situation. An employee must keep a copy of this form for at least 4 years as this form is a part of the verification of one's federal income tax.
Thus, the W-4 is a type of certification used while hiring an employee.
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what are three types of pricing associated with business products?
Answers
Answer:
geographic pricing, transfer pricing, and discounting.
Explanation:
internet.
if jeff had written five 6-month put options on worthen, what would his profit or loss have been at the maturity of the options if the stock price was $43 per share?
Answers
Jeff's profit or loss at the maturity of the options if the stock price was $43 per share is 5,000$.
How to find?To calculate Jeff's profit or loss after writing five 6-month put options on Worthen with the stock price at $43 per share at maturity, we need to know the strike price and the premium received for each option.Assuming that the strike price of the put options was $45 per share, Jeff would have made a profit of $10 per share on each option. This is because the holder of the put option would exercise their right to sell the stock to Jeff at $45 per share, even though the market price was only $43 per share. Jeff would then be able to sell the stock at the market price of $43 per share, making a profit of $2 per share on each option.Hence , Jeff's total profit would be $10 per share x 100 shares (per option) x 5 options = $5,000.
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Which of the following users would rely on managerial accounting information for decision-making purposes?
a) potential investors
b) creditors
c) customers
d) company managers
Answers
Company managers would rely on managerial accounting information for decision-making purposes.What is Managerial Accounting.Managerial accounting is the process of identifying, measuring, analyzing, and communicating financial information used by management to plan, evaluate, and control within an organization. It includes budgeting, cost management, and performance analysis. Managerial accounting is often used to improve business operations, reduce costs, and increase profitability.
Based on the given options, the users who would rely on managerial accounting information for decision-making purposes would be the company managers. Company managers need financial information to assess the company's financial position and performance to make informed decisions to improve the company's performance.Therefore, the correct option is option d) Company managers.
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Which demographic groups does Women in Motion serve?(keep it clear and short)
Answers
The demographic group Women in Motion serve is Women who are all talented and Young giving in their best contribution to Cinema.
What is demographic?
Demographic is referred to defining a set of populations based on the characteristics like age, gender, social status, education, qualification, and so on.
"Women in Motion" has referred to a kind of award which was given to effective young female personalities who are raising the position of women in society and providing a contribution to their growth.
The event has emerged as a go-to platform for starting discussions and influencing perceptions around the representation of women in the arts and entertainment industries.
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Groups of employees from different departments who work together on a long- term basis are called ______________________________________________.
Answers
Answer:
cross-functional teams
Explanation:
Imagine starting your own company. What type of company might you start and what type of ownership do you think would work best for your business? Why?
Answers
I would start a company that will be a sole trader company, as this will have my own capital and no other investors or shareholders.
What is a Company?A company is a business that sells products and or services to customers for the earning of profits, the company I will form is a sole trader and it will be a burger shop.
This will have a sole trader and no other shareholder, the complete profit will be enjoyed by the sole owner and if required more capital the further capital will be obtained by the banks through loan a fixed interest will be paid to them each year.
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