portfolio beta= w1b1+w2b2 w1 = 20‚000/55‚000= .3636 w2= 35‚000/55‚000= .6364 portfolio bet= .3636*.7 + .6364*1.3 = 1.082 Required rate of return AA industries = risk free rate + market risk premium*beta AA industries ri = rRF + (rM - rRF)b 4% + (12%-4%)*.8 = 10.4% required return= risk free rate+ market risk premium*beta ri = rRF + RPM* b Market- required return= 5%+7%= 12% Beta of 1- required return= 5%+ 7%*1= 12% Beta of 1.7- required return= 5%+ 7%*1.7 = 16.9% = P1r1+P2r2+P3r3+
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Multiple Choice (12 marks) Choose the best answer for each of the following 8 multiple choice questions. Circle your answer directly on the quiz booklet. Only one answer will be accepted for each multiple choice question. There is no penalty for guessing. Question No. 1 (2 marks) Bobcat Company uses a job-order costing system. During April‚ the following costs appeared in the Work in Process Inventory account: Beginning balance $ 24‚000 Direct material used 70‚000 Direct labor incurred 60
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Chapter 1 1. What is the most important difference between a corporation and all other organizational forms? A corporation is legally separate from its owners; it is an artificial being under the law. 2. What does the phrase limited liability mean in a corporate context? Limited liability refers to the amount of liability an owner has. The owner is only liable for the amount they invested in the corporation. 3. Which organizational forms give their owners limited liability? LLC
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International Accounting – Chapter 1 1. Explain why an individual investor might want to invest in an international growth fund. An individual investor might want to invest in an international growth fund if they are seeking to become more diversified. During times when the US stock market is poorly performing‚ it is likely that its foreign counterparts will be doing well because the two markets often have an inverse relationship. An investor might also want to invest in an international growth
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Chapter 5 18. a. They should use the resistance of meeting auditing standards and contributory neglegence. Stuart Supply Company management is responsible for the fraud. The fraud was complicated and difficult to discover‚ but the steps recommended by Lauren Yost & Co made it possible. The president of Stuart Supply Company ignored the proposal to count the inventory on the same day‚ and was therefore responsible to breakdown of detecting the fraud due to his decision. Luckily‚ Lauren Yost & Co
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Using named examples‚ assess the role of different players and decision-makers in trying to secure a sustainable ‘water future’. [15] The government plays a key role in trying to secure a sustainable water future. This is because it can invest in large scale projects such as the Chinese South-North project where the Chinese government plan to give the north a more sustained water supply. Governments can also subsides water projects‚ such as those done by IGOs in developing countries. However‚ it
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Jacob Bartley Chapter 5 Homework 5.4 The word log has 4 different meanings. Part of a tree trunk Official record Act of writing something in a record sheet Act of cutting down trees The word court has 4 different meanings. Where judges work Quadrangular area for a sport A royal establishment To be romantically involved The word check has 4 different meanings. To examine something To stop or slow down the progress of something To move a piece or pawn To choose to not make a bet in poker 5.5 1
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In this homework assignment‚ you will be working through two crashing problems and four earned value problems. All the information you need is included within this Homework packet. Make sure you answer all parts of the questions in their entirety. Once you have worked through the problems‚ please post your responses to the Drop Box. Please refer to the course syllabus for the due date. PROBLEM 1 Use the network diagram below and the additional information provided to answer the corresponding
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MANAGERIAL ECONOMICS MANAGERIAL ECONOMICS: A PROBLEM SOLVING APPROACH Individual Problems 15-4‚ 15-6 & 16-3 15-On page 170 and 171 in the textbook it is covered with great scenarios. Our questions states "Does the ability to move first give the employer an advantage?" not only is the best strategy achieved by eliminating the sub optimal strategy‚ but we also know that when you eliminate MANAGERIAL ECONOMICS one of the branches of the tree‚ or one of the options‚ you change the nature of the
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Name:___________________________________ Due Monday‚ November 12th Chapter 18: Notes and Reading Guides Section One • What were the major factors that contributed to the growth of American imperialism? • The major factors that contributed to the growth of American imperialism are desire for military strength • thirst for new markets • belief in cultural superiority • What are some other examples we have learned about since September in which the United States
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