Gabby is an aspiring country artist. she has a record contract that pays her a base rate of $200 a month and an additional $12 for each album sold. last month she earned a total of $644. identify the y-intercept in the equation. x $644 $12 $200

The y-intercept would be $200

Explanation:

Given,

In a month,

Base rate = $200,

Additional charges per album = $ 12,

Thus, the total charges for x albums ( say y ) = base rate + additional charges for x albums

⇒ y = 200 + 12x

Which is the required equation,

For y-intercept,

x = 0

y = 200 + 12(0) = 200

Hence, y-intercept in the equation is $200.

Their underlying asset beta is closest to is 1.08

Explanation:

According to the given data we have the following:

Debt is given as $78 billion

Equity is given as $142 billion

equity beta given as 1.68

Therefore, in order to calculate the underlying asset beta we would have to use the formula of the the equity beta for a levered firm as follows:

betaE =beta A [1 + (Debt / Equity)]

1.68 = \beta A [1 + ($78 B/ $142 B)]

1.68 = \beta A [1 + 0.5493]

betaA = 1.68 / 1.5493

betaA = 1.08

Their underlying asset beta is closest to is 1.08