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: What is the estimated variable order filling cost component per order??
A: Step 1: We can compute the estimated variable order filling cost component per order with the high…
Q: subject - general account
A: The correct answer is:A. More timely. Explanation:Organizations use estimated overhead rates rather…
Q: 3 POINTS
A: Option a: This option 1 is correct because, a purchase commitment refers to a firm obligation to buy…
Q: Need answer
A: To calculate the net income, we can use the Return on Equity (ROE) formula: ROE = Net Income /…
Q: Mirada manufacturing overhead was?
A: Explanation: To calculate whether the manufacturing overhead was over-applied or under-applied, we…
Q: Himani co. Computed it's predetermined
A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a rate that companies…
Q: Predetermined overhead rate?
A: Explanation of Overhead: Overhead refers to all indirect costs associated with running a business…
Q: I want to correct answer general accounting question
A: Step 1: Calculation of Average Accounts ReceivablesNet Accounts Receivables for 2021 = $562,500Net…
Q: Financial Accounting
A: Step 1: Define Definition of Forward Price-to-Earnings (P/E) Ratio:The Forward P/E Ratio is a…
Q: Find the total monthly fixed cost? General accounting
A: Compute the variable component of the cost of goods sold and the selling expenses. Then use it to…
Q: Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead…
A: Explanation of Manufacturing Overhead:Manufacturing overhead refers to all indirect costs incurred…
Q: What was the number of credit sales during December?
A: To calculate the amount of credit sales during December, use the following formula: Credit Sales =…
Q: Hello teacher please help me this question general accounting
A: Step 1: Analysis of information givenBeginning total assets = $300,000Beginning total liabilities =…
Q: Solve this question general Accounting
A: Step 1: Define PatentsPatents are rights to use certain inventions exclusively. The inventors need…
Q: Ans
A: Step 1: Definition of Interest ExpenseInterest expense is the cost incurred by a company for…
Q: general account
A: To determine the total actual costs incurred, we adjust the standard costs by accounting for the…
Q: Accurate Answer
A: To calculate the total interest payable for the loan period, we can use the…
Q: Rolles company has a contribution margin ratio
A: Formula:Increase in Profit=(Increase in Sales×Contribution Margin Ratio)−Increase in Fixed…
Q: Explain the concept
A: Consolidation in financial reporting means combining the financial statements of a parent company…
Q: N. General Account
A: To determine the cost of units transferred out, we use the cost reconciliation formula: Cost of…
Q: The owner's equity in a business amounted to $76,000 at the beginning of the year and $135,000 at…
A: Step 1: Formula Equity ending balance = Equity beginning balance + Net income - WithdrawalsNet…
Q: I need help
A: A control premium is the extra amount a buyer is willing to pay to gain a controlling interest in a…
Q: General Accounting question
A: Explanation: The cost reconciliation report is prepared by reconciling the total costs to be…
Q: For the current year, Paxman Company incurred $155,000 in actual manufacturing overhead cost. The…
A: Step 1: Determine the standard manufacturing cost by adding the actual manufacturing cost and…
Q: Accounting:12.12.14
A: Given:Face value = $1,700,000Issue price = 103 (103% of face value) Formula:Proceeds from bonds sale…
Q: Financial Accounting MCQ
A: Concept of Purchase CommitmentA purchase commitment represents a binding agreement by a buyer to…
Q: Please answer this question general accounting
A: To calculate the dividend payout ratio using the residual dividend model, we follow these steps:…
Q: None
A: To calculate Pollo Inc.'s cost of common equity (Re), use the bond yield plus risk premium…
Q: Step by Step answer
A: Step 1: Calculation of Beginning Stockholders' EquityBeginning Stockholders' Equity = Beginning…
Q: General accounting
A: Step 1: Definition of Debtors (Accounts Receivable)Debtors are customers to whom a company has made…
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: What is the target cost per crepe maker?
A: To calculate the target cost per crepe maker, we need to use the following formula: Target Cost =…
Q: kindly help me with accounting questing
A: Step 1: Total Standard HoursTotal Standard Hours=Number of Tune-ups×Standard Hours per Tune-upTotal…
Q: I want to this question answer general Accounting
A: Step 1: Define Fixed Asset Utilization and CapacityFixed Asset Utilization measures how effectively…
Q: Hello tutor please provide correct answer general Accounting question
A: To determine whether the overhead was overapplied or underapplied, follow these steps: 1. Calculate…
Q: Calculate the accounts receivable turnover ratio??
A: Step 1: Net Accounts Receivables 2018 Net receivables = Accounts Receivable - Allowance for Doubtful…
Q: hi expert please give me answer accounting question
A: Step 1: Definition of Net Income IncreaseThe net income for 2024 can be calculated by applying the…
Q: Expert provide answers of this cost accounting question
A: Explanation of Target Cost:Target cost refers to the maximum amount a company can spend to produce a…
Q: Expert please provide answer
A: Explanation of Assets:Assets are resources owned by a business that have economic value and are…
Q: Give true answer this financial accounting
A: The holding period return (HPR) is calculated using the formula: HPR=Beginning ValueEnding…
Q: Financial accounting
A: Explanation of Total Assets:Total assets refer to the combined value of everything a company owns…
Q: Fill blank space. @ general account
A: Cost accounting systems are those accounting information-providing tools that help a business…
Q: Hi expert provide correct answer
A: Step 1: Definition of DepreciationDepreciation is the allocation of the cost of a tangible long-term…
Q: Financial accounting
A: Debt-to-Equity Ratio=Total Debt/Equity Rearranging to solve for Total Debt:Total…
Q: At the beginning of the year, managers at King Industries estimated $680,000 in manufacturing…
A: Predetermined overhead rate = Estimated overhead / Estimated direct labor hoursPredetermined…
Q: Please answer @ general account
A: The direct materials usage variance is calculated using the formula: Direct Materials Usage Variance…
Q: Accurate answer
A: Explanation of Purchase Price Allocation: Purchase price allocation is the accounting method used to…
Q: Shields Corporation purchases 5 flashlights for $5 each and sells them to customers for $9 each.…
A: To calculate the total gross profit, we need to find the difference between the total revenue from…
Q: Quick answer of this accounting questions
A: To calculate the Return on Assets (ROA) and Return on Equity (ROE) ratios, use the following…
Q: Sawyer Industries, Inc. (SII), developed standard costs for direct material and direct labor. In…
A: Direct Material Price VarianceThe direct material price variance measures the difference between the…
General accounting question
Step by step
Solved in 2 steps
- Calculate the equity premiumProvide correct answer general accounting questionAssume 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 .
- 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?Accounting question
- 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: ______%.Calculate the annual interest (in $) and current yield (as a %) of the bond. (Round your percentage to one decimal place.) Company Coupon Rate Annual Interest Market Price Current Yield Company 5 7.25% $ 101.00 7.18%