Question
I need 6 questionsanswered within the next 60 minutes! 1.Josh Smithinvested 15% ofhis money in Stock A, 25% in Stock B, and the rest in
I need 6 questionsanswered within the next 60 minutes!
1.Josh Smithinvested 15% ofhis money in Stock A, 25% in Stock B, and the rest in Stock C. The portfolio beta is 0.75, and the betas of B and C are -1.3 and 1.25 respectively. What is the beta of Stock A?
2. ABC Inc. has a required return of 10.5% and a beta of 1.0. According to the CAPM,ABCIncis: (a)more risky than the market (b) less risky than the market (c) cant be compared to the market since the risk free rate is not known or (d) has an equal risk to the market
3. Given the following information for HotPhones, Inc: net income = $85,000, beginning of year retained earnings = $25,000, tax rate=28%, common stock dividends paid for the year = $33,000 Compute the end of year retained earnings.
4.Jason's EBT is $60,000. What is the marginal tax rate?
Before Tax Income EBT | Tax Rate |
$0-$50,000 | 15% |
$50,001-$75,000 | 25% |
$75,001-$100,000 | 34% |
$100,001-$335,000 | 39% |
$335,001-$10,000,000 | 34% |
$10,000,001-$15,000,000 | 35% |
$15,000,001-$18,333,333 | 38% |
Over $18,333,333 | 35% |
5.Amanda's EBT is $12,575,000. What is the average tax rate?
Before Tax Income (EBT) | Tax Rate |
$0-$50,000 | 15% |
$50,001-$75,000 | 25% |
$75,001-$100,000 | 34% |
$100,001-$335,000 | 39% |
$335,001-$10,000,000 | 34% |
$10,000,001-$15,000,000 | 35% |
$15,000,001-$18,333,333 | 38% |
Over $18,333,333 | 35% |
6. Below are quotes from four differentNASDAQ dealers for HotPhones Co. common stock. Which dealer has the best quote if you were looking to buy this stock? Is it (a) Dealer D bid $66.05 ask $66.20 (b) Dealer B bid $66.40 ask $66.45 (c) Dealer A bid $66.15 ask $66.30 or (d) Dealer C bid $66.00 ask $66.35
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