The expected return on the market portfolio is 15%. The risk-free rate is 8%. The expected return on SDA Corp. common stock is 16%. The beta of SDA Corp. common stock is 1.25. Within the context of the capital asset pricing model, SDA Corp. stock's alpha is

Q: Using the above information, calculate efn

A: Here, Sales is $48,800 Assets is $53,650 Spontaneous Liability (Accounts Payable) is $2,400 % Change…

Q: Describe about the LIFO and FIFO method.

A:

Q: Define geometric-gradient-series?

A: When there is a change in the cash flows series whether it is positive or negative then the series…

Q: Write two examples of SWOT analysis

A: 2. SWOT analysis for Sedibeng Breweries Strength: Capital stock: A strong capital base has been…

Q: Define DuPont equation

A: A Du-pont analysis is an equation which calculates the return on equity by multiplying net profit…

Q: What is Monte Carlo simulation?

A: The question is based on the concept of Monte Carlo simulation, the method is based on  stochastic…

Q: Define Vertical analysis.

A: Financial statement analysis   Financial statement analysis are analyzed to understand the…

Q: Define correlation

A: Correlation: Correlation is a statistical method that can display whether and just how strongly…

Q: put these numbers in T form

A: T-Account A collection of financial records that employ double-entry accounting is referred to…

Q: Define Factoring.

A: Accounts Receivable: It refers to the amount of money due to the company from the debtors.

Q: What is Monte Carlo simulation analysis?

A: Answer: Monte Carlo simulation is the methodology used to consider the financial, cost, and project…

Q: what is the formula break down

A: When you are taking the warranty than you must see that buying the warranty is worth or not and if…

Q: Describe the revaluation model.

A: Introduction: The revaluation model stretches a business the option of carrying a fixed asset at its…

Q: Explain operating cycle.

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: . What is linear programming? Briefly explain the usefulness of the model.

A: A mathematical optimization technique called linear programming is used to determine the optimal…

Q: Draw the step of the accounting Cycle ?

A: The accounting cycle is the comprehensive process of documenting and processing all of a company's…

Q: How to calculate r value

A: The interest rate: The rate that is used to compute the simple or compound interest is known as the…

Q: Explain quick ratio

A: The formula to compute quick ratio as follows:

Q: What is alpha transfer?

A: The term ‘Alpha’ refers to the active return on investment. In other words, the excess return from…

Q: How to do the according equation

A: Accounting Equation is the double-entry system used by the organization to get the balance sheet and…

Q: Can you provide a manual written working of calculating CAPM Req. Return and beta

A: The Capital Asset Pricing Model is a model that describes the relationship between the expected…

Q: Define characteristic line

A: Characteristic line is a graphical representation of alpha (α) where alpha is the difference between…

Q: Describe the process of calculating NPV.

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: Explain retention ratio

A: Retention Ratio represents the percentage of profits retained by a Company. The Retention ratio…

Q: What is Hamada equation?

A: The Hamada Equation : The Hamada equation is a method used to analyse the cost of capital of firm.…

Q: Define estimates.

A: Estimates are future predictions of something. For example at the beginning of the year a business…

Q: What is The NPV for Machine B=

A: NPV will be calculated as follows:-NPV =

Q: Describe about the concept of COGS.

A: Cost of goods sold (COGS): Cost of goods sold is the accumulate amount of all direct cost incurred…

Q: How do I calculate FIFO and LIFO?

A: Meaning of FIFO:First in first out means if company purchases any goods for sale purpose then…