Calculate the required rate of return for Mercury Inc., assuming that the real risk-free rate is equal to 4% and the market risk premium (note that is not the same as the market return) is 6%
Mercury has a beta of 1.5, and its realized rate of return has averaged 15% over the last 5 years.
A) 6%
B) 16%
C) 18%
D) 13%
E) 17%
D
You might also like to view...
Finch Corporation (E & P of $400,000) distributed machinery ($10,000 adjusted basis, $150,000 fair market value) to its sole shareholder, Kathleen. The property is subject to a $50,000 mortgage, which Kathleen assumed. How much dividend income does Kathleen recognize as a result of the distribution and what is her basis in the machinery?
What will be an ideal response?
One of the steps in preparing the process cost report under FIFO method requires dividing current costs charged to the Work in Process Inventory account of each department or production process by equivalent units to calculate the cost per equivalent unit
Indicate whether the statement is true or false
Revenue and contra-cost accounts are debited in the closing process. What account is credited in the closing entry procedure?
a. Capital b. Merchandise Inventory c. Income Summary d. Fees Earned e. Accounts Receivable
A ticket to a sporting event is a license
Indicate whether the statement is true or false