Calculate the equity premium on the following set of data: Stock market return 10.2% Corporate bond return 7.1% Short-term t bills 3.7% Inflation 2.2% a. 6.50% b. 8% c. 7.83% d. 6.27%
Q: Well explained answer structure
A: Key Definitions Related to the Question:Substance Over Form: The accounting principle stating that…
Q: Hello tutor please provide this question answer general accounting
A: Acid test ratio = Quick assets / Current Liabilities Compute the quick assets.Quick assets = Cash +…
Q: Need help with this question solution general accounting
A: Part A:Computation of the length of the cash conversion cycle by using the following formula:Cash…
Q: Financial accounting please given answer
A: Cash flows:Year 0: -$200 (Initial investment)Year 1: $100Year 2: $220Year 3: $90Year 4: $45Required…
Q: A partially completed pension spreadsheet showing the relationships among the elements that comprise…
A: Step-by-Step Completion:Calculating the components of pension expense:Service Cost:Directly given as…
Q: Need general accounting question ⁉️
A: Step 1: Define Acid-Test RatioThe acid test, or quick ratio is a stricter form of the current ratio…
Q: Four grams of musk oil are required for each bottle of Mink Caress, a popular perfume made by a…
A: Detailed explanation: 1st2nd3rd4thYear TotalBudgeted Production in Bottles…
Q: Questions 5 Marks Sapphire Events records supplies using bin cards. Bin #12 shows: beginning 150…
A: Explanation of Bin Cards: Bin cards are inventory control documents used to track the movement of…
Q: Financial account question given answer
A: Step 1: Define Growth Rate in SalesA firm raises capital to invest in assets which are further…
Q: What should the value of this share be on these accounting question?
A: To find the value of the share, use the formula:Step 1: Calculate the Expected EPSThe firm's…
Q: Give explanation
A: My approach focused on explaining the going concern assumption clearly and concisely, emphasizing…
Q: State the payroll amount
A: Explanation of Regular Pay:Regular pay refers to the compensation earned by an employee for working…
Q: Cost
A: Explanation of Repair Cost:Repair cost refers to the total expenditure incurred in restoring…
Q: I need answer of this question solution general accounting
A: Step 1: Define Operating Cash FlowIn accounting, the cash flows of a business can be analyzed in…
Q: Spoilage that should not arise under efficient operating conditions is referred to as Select one:…
A: In accounting, particularly in cost accounting, spoilage refers to the portion of a product's…
Q: Find out
A: Step 1: To find the totrtal room service revenue, we need to add up all the sales: Total revenue =…
Q: Select correct answer
A: Explanation of Forward-Looking Information:Forward-looking information refers to financial…
Q: Hii tutor need your help
A: Explanation of Overhead Costs:Overhead costs refer to indirect costs that cannot be directly traced…
Q: Benham Foundries manufactures metal components. The inventory policy at Benham is to hold inventory…
A: Step 1:First calculate the estimated ending inventory: Estimated ending inventory = Average monthly…
Q: Accounting question please solve answer
A: Step 1:Computation of the total liabilities: Total liabilities = Current liabilities + Long-term…
Q: provide answer please this Accounting Metter
A: Step 1: Compute the standard pound of direct material required to produce 5,500 units by using the…
Q: Given answer financial
A: Step 1: Define Gross SalesIn accounting, the gross sale is an important account. It is a measure of…
Q: Provide correct answer the general accounting question
A: Step 1: Define Ratio AnalysisRatio analysis is essential in management accounting. It helps evaluate…
Q: PLEASE HELP ME WITH THIS ACCOUNTING PROBLEM! FILL ALL CELLS NECESSARY ONLY THE ONES NECESSARY
A: Step 1: Calculate Annual DepreciationStep 2: Calculate Accumulated Depreciation for 6…
Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…
A: Here are the steps I took to arrive at the analysis: Identify the Plant Assets: I started by…
Q: Hope industries has ....accounting question
A: Step 1:Net Fixed Assets can be calculated by subtracting the Current assets from the Total…
Q: General Accounting
A: Step 1: Define Cost BehaviorThere are various methods can be used to segregate a mixed cost into…
Q: Give answer this general accounting question
A: Step 1: Define Absorption CostingAbsorption costing is also known as full costing because it…
Q: Accounting question
A: Step 1: Define Predetermined Overhead RateThe predetermined overhead rate is an allocation rate…
Q: If you give me correct answer I will give you helpful rate on these accounting question
A: Step 1: Define Standard or Budgeted QuantityIn accounting, the standard or budgeted values of…
Q: Pagan Corporation owns 85% of the outstanding voting stock of Sagan Company and Maa Corporation owns…
A: In the context of consolidated financial statements, it's important to understand the terms…
Q: Accounting Question
A: Step-by-Step Process:Calculate Current Total Cost per Unit:Total Cost for 35,000 units = $16,635,000…
Q: General Accounting
A: Step 1: Define User Cost of CapitalThe user cost of capital consists of two parts. One is the…
Q: Accounting question
A: Step 1: Define Asset Turnover Ratio Step 2: Given DataSales = $665,210 millionAverage Total Assets =…
Q: Provide this question solution general accounting
A: Step 1: Identify the quick assetsStep 2: Sum up the quick assetsStep 3: Identify the current…
Q: Can you answer this accounting question?
A: Step 1: Define Balance SheetA balance sheet equation comprises the accounting elements called…
Q: Case study: financial accounting
A: Explanation of Consistency Principle: The consistency principle in accounting requires companies to…
Q: Want answer of this accounting Question
A: Key Definitions Related to the Question:Going Concern Assumption: The principle assuming that a…
Q: I want to correct answer general accounting
A: To calculate the Present Value (PV) of future cash inflows, we can use the formula for the…
Q: Provide this question solution general accounting
A: To determine Potash's share price based on the provided information, we use the Price-to-Earnings…
Q: Please need answer the accounting question not use chatgpt
A: Return on Assets (ROA) = (Net Income / Average Total Assets) x 100% Average Total Assets =…
Q: Gp for the period
A: Explanation of Trial Balance: A trial balance is a bookkeeping worksheet that lists all the accounts…
Q: As of december. ....given answer Accounting question
A: Step 1: Define Employee Retirement ExpenseRetirement benefit includes a pension that ensures that an…
Q: Specify the cost
A: Explanation of Prepaid Expenses:Prepaid expenses are payments made in advance for goods or services…
Q: I need answer of this question solution general accounting
A: Step 1:Define Shareholders EquityAfter deducting all the liabilities of a company from the assets,…
Q: ??
A: FEEL FREE TO ASK FOR CLARIFICATIONS
Q: I want to correct answer general accounting
A: Step 1: Define Manufacturing OverheadThe manufacturing overhead cost represents the indirect…
Q: Provide answer with explanation
A: Option a: IncorrectSocial Responsibility Accounting (SRA) also considers financial performance aside…
Q: Accounting
A: Step 1: Define Financial RatiosFinancial ratios are indicators of financial performance and position…
Q: I need answer of this question solution general accounting
A: Total manufacturing costs = Direct materials used + Direct labor + Manufacturing overheadDirect…
Please provide this question solution general accounting
Step by step
Solved in 2 steps
- Calculate Cost of Common Equity using CAPM (Capital Asset Pricing Model), DCF (Discounted Cash Flow Model) and Bond Yield Risk Premium CAPM data: VEC’s beta = 1.2 The yield on T-bonds = 3% Market risk premium = 7% DCF data: Stock price = $27.08 Last year’s dividend (D0) = $2.10 Expected dividend growth rate = 4% Bond-yield-plus-risk-premium data: Risk premium = 5.5% Amount of retained earnings available = $80,000 Floatation cost for newly issued shares = 7%Consider the following average annual returns: Investment Average Return 23.4% Small Stocks S&P 500 13.7% 7.4% Corporate Bonds Treasure Bonds Treasury Bills What is the excess return for corporate bonds? O A. 0% B. 3.1% C. 6.2% O D. 1.6% 6.1% 4.3%Consider the following information from 2017. Item T-bills Return 3.6% Corporate bonds 4.7% Stocks Inflation 7.3% 1.6% What is closest to the real return on corporate bonds? 1% 2% 3% 4%
- Assume these are the stock market and Treasury bill returns for a 5-year period: T-Bill Return Year Stock Market Return (8) (8) 2016 32.50 0.07 2017 11.80 0.07 2018 -2.40 0.07 2019 13.70 0.25 2020 22.40 0.27 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. Required A Required B Required C What was the risk premium on common stock in each year? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative values should be entered with a negative sign.. Year Risk Premium 2016 % 2017 % 2018 % 2019 % 2020 %Consider the following average annual returns: Average Return 23.4% 13.4% 7% 6.4% 4.7% Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills What is the excess return for the portfolio of small stocks? O A. 16.8% OB. 15.9% O C. 18.7% OD. 11.2%Assume that the risk-free rate (i.e., Rf) is 2.8%. If, for a particular company bond issue, the default risk premium (i.e., DP) is 3.1%, the maturity risk premium ( i.e., MP) is 0.9%, and the market risk premium ( i.e., MRP) for that company's stock is 12.9% what is the required rate of return for the company's fixed income securities ? Record your answer as a percent , rounded to one decimal place , but do not include a percent sign in your answer . For example , enter 0.1578658 = 15.78625% as 15.8 .
- need answer in step by stepSelected information for Berry Company is as follows: Berrys return on equity rounded to the nearest percentage point is: a. 20%. c. 28%. b. 21%. d. 40%.Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-Bill Return Return (%) (%) 0.14 Year 2013 34.20 2014 13.90 0.14 2015 -3.80 0.14 2016 14.80 0.09 2017 24.30 0.11 Required: a. What was the risk premium on common stock in each year? b. What was the average risk premium? c. What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) Complete this question by entering your answers in the tabs below. Required A Required B Required C What was the standard deviation of the risk premium? (Ignore that the estimation is from a sample of data.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation %
