Calculate the equity premium on the following set of data: Stock market return: 12.5% Corporate bond return: 8.2% Short-term T- bills: 4.8% Inflation: 3.1% a. 7.7% b. 9.4% c. 8.2% d. 7.1%
Q: A company has a significant amount of inventory that has become obsolete. Discuss the accounting…
A: Definitions Related to the Question:1. Obsolete Inventory: Obsolete inventory refers to items that…
Q: Please answer this question general accounting
A: To calculate the dividend payout ratio using the residual dividend model, we follow these steps:…
Q: Hi expert provide correct answer general accounting
A: Step 1: Definition of Degree of Operating Leverage (DOL)The degree of operating leverage (DOL)…
Q: 7. Financial Accounting: Assume the following is the stockholders' equity section of the 2019 Max &…
A: Explanation of Issued Shares:Issued shares refer to the total number of shares that a company has…
Q: Don't use ai given answer accounting questions
A: Step 1: Analysis of information givenTotal overhead cost = $24,000Total direct labor cost =…
Q: Answer? ? Financial accounting question
A: Step 1: Define MarkupMarkup refers to the part of the profit earned on the selling of a product or…
Q: What is the return on assets for this general accounting question?
A: Step 1:Calculate the proft margin as follows:Profit margin = Sales * profit margin percentage…
Q: financial account questions]
A: The fixed manufacturing overhead is a cost that remains constant regardless of the level of…
Q: Do fast answer of this accounting questions
A: Approach to solving the question: In order to get the Applied manufacturing overhead, we follow the…
Q: What is the number of work days
A:
Q: Answer? ? Financial accounting question
A: Step 1: Calculate the expected dividend (D1)Formula: D1 = D0 * (1 + g)D0 = Last dividend paid =…
Q: Montain top harware by kirk lynch i need help with the purchase journal on page 9 please. Only…
A: I understand you're working on the "Mountain Top Hardware Practice Set" by Dr. Kirk Lynch and need…
Q: Overhead rate calculate
A: Step 1: Definition of Overhead Rate in Activity-Based Costing (ABC)The overhead rate for an activity…
Q: The Aakash Company forecasts that total overhead for the current year will be $17,000,000 and total…
A: To calculate the predetermined overhead rate, we use the formula: Predetermined Overhead Rate =…
Q: Conversion cost during the month totalled
A: Explanation of Conversion Costs:Conversion costs refer to the expenses incurred to convert raw…
Q: Provide answer
A: Explanation of Contra Revenues: Contra revenues are accounts that reduce gross sales to arrive at…
Q: What is the number of work days in an order cycle
A: 1. Calculate the EOQ:Annual demand (D): 48,000 batteriesOrdering cost (S): $30 per orderHolding cost…
Q: get correct answer
A: The total Standard Cost for 200 tune-ups:Standard Cost=(Standard Hours per Tune-up×Standard…
Q: None
A: Calculation of the expected collections for June:Given:Cash sales from June: 25% of June's…
Q: A fixed asset with a cost of $38, 400
A: Explanation: Gain (loss) on disposal of fixed asset can be calculated using the following…
Q: General Accounting question
A: Explanation: The cost reconciliation report is prepared by reconciling the total costs to be…
Q: If a gross margin of $35,000 is 28% of net sales revenues, then net sales revenues must be: a.…
A: Step 1: Understand the FormulaThe relationship between gross margin, gross margin percentage, and…
Q: Kindly help me with accounting questions
A: Step 1: Definition of Overhead RateThe overhead rate is the percentage of overhead costs allocated…
Q: What is the proper capitalized cost of the printing press?
A: Step 1: Definition of Capitalized CostThe capitalized cost is the total amount incurred to acquire…
Q: Interest expense for the year ended December 31, 2010 was ????
A: To determine the interest expense for RAS Corporation for the year ended December 31, 2010,…
Q: I want to correct answer accounting questions
A: Step 1: Definition of Units-of-Production DepreciationUnits-of-Production Depreciation allocates the…
Q: Hii expert please given correct answer general Accounting
A: Step 1: Define Portfolio An investment portfolio refers to a diversification strategy to minimize…
Q: Quick answer of this accounting questions
A: Step 1: Definition of Net Realizable Value of Accounts ReceivableThe Net Realizable Value (NRV) of…
Q: A company is considering whether to adopt a new lease accounting standard. Discuss the potential…
A: Adopting a new lease accounting standard, such as ASC 842 in the U.S. or IFRS 16 internationally,…
Q: How much is direct labour cost
A: Step 1: Analysis of information givenTotal manufacturing costs = $186,000Manufacturing overhead =…
Q: cost account
A: Step 1:The cost accounting is a system of identifying, interpreting, accumulating, analyzing and…
Q: Need answer the financial accounting question
A: Step 1: Define Holding Period Return (HPR)The holding period return (HPR) is the total return earned…
Q: Do fast answer of this accounting questions
A: Step 1: Analysis of information providedDirect labor rate: $15/hourOverhead application rate:…
Q: Cost Accounting
A: Schedule of Cost of Goods Manufactured (COGM)For the Year Ended December 31,…
Q: Variable overhead:7 fixed: overhead:8
A: Detailed explanation:Capacity: 55,000 unitsCurrent Production and Existing Sales : 50,000…
Q: Harms Shoe Company applies manufacturing overhead based on the number of units as the cost driver.…
A: Step 1: Calculate total direct labor costStep 2: Add direct materials costStep 3: Add manufacturing…
Q: ?!
A: Explanation of Cost of Goods Sold (COGS): This represents the direct costs associated with producing…
Q: Annapolis Company manufactures quality boating apparel. The following selected financial information…
A: Step 1: Step 2: Step 3: Step 4:
Q: Kindly help me with accounting questions
A: Step 1: Definition of Net IncomeNet income is the profit earned by a business over a period after…
Q: Financial Accounting-9 Milford Inc. has a debt-to-equity ratio of 0.8o. It has total shareholders'…
A: To calculate the long-term debt, we use the debt-to-equity ratio formula: Debt-to-Equity Ratio =…
Q: Cost accounting
A: Explanation of Sales:Sales refer to the total revenue a company generates from selling goods or…
Q: Ans
A: Calculations:1.Net Income:EBT = EBIT - Interest ChargesEBT = $1,296,000 - $396,000EBT = $900,000Net…
Q: general account
A: To determine the total actual costs incurred, we adjust the standard costs by accounting for the…
Q: What is the company's return on equity on these financial accounting question?
A: Step 1: Formulas Equity = Assets - LiabilitiesNet income = Profit margin x SalesReturn on equity =…
Q: Financial accounting problem
A: Explanation: Following data is given for the current year 2012:Cost of producing one unit of part T5…
Q: Financial Accounting please help
A: 1. Calculate Quick Assets:Quick Ratio = Quick Assets / Current LiabilitiesQuick Assets = Quick Ratio…
Q: I need a expert not AI Step Amount Category Inventory 1. Beginning Balance, January 1…
A: 1.The table shows that the variable factory overhead is listed separately in Step 7. Variable…
Q: None
A: Step 1: Given Value for Calculation Net Income = ni = $600,000Preferred Stock Dividend = pd =…
Q: The initial cost the equipment is ??
A: The question requires the determination of the initial cost of equipment. The initial cost of…
Q: How much of a percentage increase would you expect in the company's net income? General accounting
A: Compute the current income.Net income = Contribution margin - Fixed costs - Interest expense Since…
Quick answer of this accounting questions
Step by step
Solved in 2 steps
- Calculate the equity premiumAssume 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 .Using the table below, Compute the convexity measure (in years) for bond 2 Bond 1 Bond 2 Coupon Yield to maturity Maturity (in years) Par value 6% 7% 6% 6% 4 $100 $100 $100 $108 Price O A. 14.763 12.652 OC. 13.312 OD. 13.927
- 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%If the annual geometric mean for the equity risk premium is 8.4 percent, what percentage of the equity risk premium is consumed by trading costs of 1.2 percent?Assume the following Risk Premiums: DRP ? LP = 0.25% MRP =1.15% 10-year Government bonds yield 4.65% 10-year corporate bonds yield 6.75%. What is the default risk premium on corporate bonds?
- In a year in which corporate bonds offered an average return of 9%, treasury bonds offered an average return of 7%, common stocks offered an average return of 16% and Treasury bills offered 3%. The market risk premium was: ______%.The maturity risk premium for Vonda bonds are 3%, default risk premium for Vonda bonds are 4%, and the liquidity risk premium for Vonda bonds are 2%. The real rate of return is 3% and the inflation premium is 3%. What is the nominal rate of return?Red Fire has a Debt/Equity Ratio of .1, a return on sales of 3.4, and an asset turnover of 2.3. What is its ROE? Question 7 options: 6.9% 0.8% 8.6% 6.0% 19.8%
- The rate of return on which one of the following has a risk premium of 0%? Multiple Choice Long-term government bonds Long-term corporate bonds Intermediate-term government bonds U.S. Treasury bills Large-company stocksIn a bond portfolio, the following are the present values of all cash flows by annual period: Year PV Cash flows (millions) 1 14.3 2 13.2 3 15.3 4 10.5 5 18.4 What is the percentage contribution to duration of the year 3 cash flows? Enter answer in percents.Consider the following table for the total annual returns for a given period of time. Series Average return Standard Deviation Large-company stocks 12.3% 20.6% Small-company stocks 16.4 33.0 Long-term corporate bonds 6.2 8.4 Long-term government bonds 6.1 9.4 Intermediate-term government bonds 5.6 5.7 U.S. Treasury bills 3.8 3.1 Inflation 3.1 4.2 What range of returns would you expect to see 68 percent of the time for large-company stocks? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected range of returns % to % What about 95 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal…
