Stock a has a beta = 0.8, while stock b has a beta = 1.6. which of the following statements is correct? a. if the risk-free rate increases but the market risk premium remains constant, the required return on stock a will increase by more than that on stock b. b. if the marginal investor becomes more risk averse, the required return on stock b will increase by more than the required return on stock a. c. stock b's required return is double that of stock a's. d. if the marginal investor becomes more risk averse, the required return on stock a will increase by more than the required return on stock b. e. an equally weighted portfolio of stocks a and b will have a beta lower than 1.2.

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805

The following information is from the 2019 records of albert book shop: accounts receivable, december 31, 2019 $ 42 comma 000 (debit) allowance for bad debts, december 31, 2019 prior to adjustment 2 comma 000 (debit) net credit sales for 2019 179 comma 000 accounts written off as uncollectible during 2017 15 comma 000 cash sales during 2019 28 comma 500 bad debts expense is estimated by the method. management estimates that $ 5 comma 300 of accounts receivable will be uncollectible. calculate the amount of bad debts expense for 2019.

Which of the following comes after a period of recession in the business cycle? a. stagflation b. a drought c. a boom d. recovery