Business, 26.09.2019 20:00 carterh166
We do bankruptcies is a law firm that specializes in providing advice to firms in financial distress. it prospers in recessions when other firms are struggling. consequently, its beta is negative, −0.2. a. if the interest rate on treasury bills is 4% and the expected return on the market portfolio is 14%, what is the expected return on the shares of the law firm according to the capm? (enter your answer as a whole percent.) b. suppose you invested 90% of your wealth in the market portfolio and the remainder of your wealth in the shares in the law firm. what would be the beta of your portfolio? (do not round intermediate calculations. round your answer to 2 decimal places.)
Answers: 1
Business, 22.06.2019 02:00, rsanchez1226
On january 1, 2017, fisher corporation purchased 40 percent (90,000 shares) of the common stock of bowden, inc. for $980,000 in cash and began to use the equity method for the investment. the price paid represented a $48,000 payment in excess of the book value of fisher's share of bowden's underlying net assets. fisher was willing to make this extra payment because of a recently developed patent held by bowden with a 15-year remaining life. all other assets were considered appropriately valued on bowden's books. bowden declares and pays a $90,000 cash dividend to its stockholders each year on september 15. bowden reported net income of $400,000 in 2017 and $348,000 in 2018. each income figure was earned evenly throughout its respective year. on july 1, 2018, fisher sold 10 percent (22,500 shares) of bowden's outstanding shares for $338,000 in cash. although it sold this interest, fisher maintained the ability to significantly influence bowden's decision-making process. prepare the journal entries for fisher for the years of 2017 and 2018. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field. do not round intermediate calculations. round your final answers to the nearest whole dollar.)
Answers: 3
Business, 22.06.2019 07:50, pattydixon6
The questions of economics address which of the following ? check all that apply
Answers: 3
Business, 22.06.2019 10:50, milliebbbrown
Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.
Answers: 2
We do bankruptcies is a law firm that specializes in providing advice to firms in financial distress...
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