1. Assume you are interested in a stock that has a beta of 1.25. If the expected return of the market is 12 percent and the risk-free rate is 3%, what is the required return expected to be for the stock? What would the required return be if the beta was .70?
2. Rector Company manufactures a line of lightweight running shoes. CEO Mark Rector estimated that the company would incur $2,500,000 in manufacturing overhead during the coming year. Additionally, he estimated the company would operate at a level requiring 250,000 direct labor hours and 400,000 machine hours.
1. Assume that job 4375 required 300 direct labor hours to complete. How much manufacturing overhead should be applied to the job? (Round answer to 0 decimal places, e.g. 5,275.)