50.1K
Verified Solution
Link Copied!
Q: Consider the given balance sheet, perform percentage change analysis for the following items.
Total asset
| Balance sheet |
| | Dec-11 | | Dec-10 |
| Asset | | | |
| Cash | $ 4500 | | $ 4000 |
| Marketable securities | 2500 | | 2000 |
| Accounts receivable | 6800 | | 7200 |
| Inventories | 7500 | | 8000 |
| total current asset | 21300 | | 21200 |
| Land | 11000 | | 12000 |
| Equipment | 24000 | | 20500 |
| Accumulated depreciation equipment | -3800 | | -3000 |
| Building | 70000 | | 70000 |
| Accumulated depreciation building | -14000 | | -12000 |
| total asset | 108500 | | 108700 |
| Liabilities and stock holder equity | | | |
| accounts payable | 7800 | | 7000 |
| wages payable | 1050 | | 1000 |
| taxes payable | 500 | | 1500 |
| total current liabilities | 9350 | | 9500 |
| bonds payable | 30000 | | 30000 |
| common stock $10 par | 32000 | | 30000 |
| additional paid in capital | 21000 | | 19200 |
| retained earning | 16150 | | 20000 |
| total Liabilities and stock holder equity | 108500 | | 108700 |
The following table shows betas for several companies.
| Company | Beta |
| Company 1 | 0.82 |
| Company 2 | 1.45 |
| Company 3 | 0.92 |
| Company 4 | 0.69 |
| Company 5 | 1.73 |
| Company 6 | 1.78 |
| Company 7 | 0.71 |
| Company 8 | 0.61 |
| Company 9 | 0.63 |
| Company 10 | 2.27 |
You have equal investment in all stocks. What would be your portfolio beta?
Answer & Explanation
Solved by verified expert
