An analyst uses the Grinold-Kroner model to estimate the stock market return. The analyst forecasts a 1.5% dividend yield, 2% real dividend growth, 2% long-term inflation, 1% average annual reduction in share outstanding and an overall market contraction in valuation of 0.5%. What should be the analyst's forecast of the equity market return? a. 4% O b. 5% O C. 6% d. 7%

An analyst uses the Grinold-Kroner model to estimate the stock market return. The analyst forecasts a 1.5% dividend yield, 2% real dividend growth, 2% long-term inflation, 1% average annual reduction in share outstanding and an overall market contraction in valuation of 0.5%. What should be the analyst's forecast of the equity market return? a. 4% O b. 5% O C. 6% d. 7%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q30
14. Determine the numerical value of the factor (F/A, 5%, 10). A 0.1295 0.0795 12.5779 D 7.7217 B.
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What is the value of (F/G, 3.2%, 7)? O a. 17.7723 b. 22.1565 O c. 2.8741 d. 1.2467 e. 7.7090
3 . D e t e r m i n e t h e a n n u a l n e t c o s t o f t h e s e c h e c k i n g a c c o u n t s : a ) M o n t h l y f e e o f P 5 0 0 . 0 0 , a c h e c k p r o c e s s i n g f e e o f P 2 5 0 . 0 0 , a n a v e ra g e o f 1 9 c h e c k s w r i t t e n p e r m o n t h b ) A n n u a l i n t e r e s t o f 2 . 5 % p a i d i f b a l a n c e e x c e e d s P 2 0 , 0 0 0 . 0 0 , P 2 , 0 0 0 . 0 0 m o n t h l y f e e i f a c c o u n t f a l l s b e l o w t h e m i n i m u m b a l a n c e , a v e r a g e m o n t h l y b a l a n c e P 1 5 , 0 0 0 . 0 0 , a c c o u n t f a l l s b e l o w P 1 0 , 0 0 0 . 0 0 d u r i n g 4 m o n t h s .
Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $51 to buy from farmers and $10 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $21 or processed further for $11 to make the end product industrial fiber that is sold for $59. The beet juice can be sold as is for $42 or processed further for $24 to make the end product refined sugar that is sold for $59. How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? Multiple Choice O $(4) $8
1 . A n d r e i S a n t o s p u r c h a s e d a c o n d o m i n i u m 4 y e a r s a g o f o r P 3 , 6 0 0 ,0 0 0 . 0 0 , p a y i n g P 3 7 , 5 0 0 . 0 0 p e r m o n t h o n h e r P 2 , 0 0 0 , 0 0 0 . 0 0 , 8 % , 2 5 - y e a r m o r t g a g e . T h e c u r r e n t l o a n b a l a n c e i s P 1 , 5 2 4 , 0 1 0 . 0 0 . r e c e n t ly , i n t e r e s t r a t e s d r o p p e d s h a r p l y , c au s i n g A n d r e i t o c o n s i d e r r e f i n a n c i n g h e r c o n d o a t t h e p r e v a i l i n g r a t e o f 6 % . H e e x p e c t s t o r e m a i n i n t h e c o n d o f o r a t l e a s t 4 m o r e y e a r s a n d h a s f o u n d a l e n d e r t h a t w i l l m a k e a 6 % , 2 1 - y e a r , P 1 , 5 2 4 , 0 1 0 . 0 0 l o a n , r e q u i r i n g m o n t h l y p a y m e n t s o f P 1 0 , 6 5 0 . 0 0 . a l t h o u g h t h e r e is…
D1.
Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours 9.2 kilos Direct materials Direct labor. 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August Actual output Raw materials used in production Purchases of raw materials. Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Multiple Choice Standard Price or Rate $ 6.70 per kilo $ 27.00 per hour $ 6.70 per hour 3,900 units 29,730 kilos 32,300 kilos 1,130 hours $ 202,920 $ 23,436 $ 8,240 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for August is:
Find v in question c and find c in question d
Bumgardner Incorporated has provided the following data concerning one of the products in its standard cost system. Inputs Direct materials Standard Quantity or Hours per Unit of Output 8.0 liters Standard Price or Rate $ 5.00 per liter The company has reported the following actual results for the product for April: Actual output Raw materials purchased 7,400 units 65,400 liters $ 5.70 per liter 59,210 liters Actual price of raw materials Raw materials used in production The raw materials price variance for the month is closest to: (Round your intermediate calculations to 2 decimal places.)

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