what is the cost of equity for a firm that has a beta of 1.22 if the risk-free rate of return is 1.4 percent and the expected market return is 6.6 percent? multiple choice 6.60% 7.74% 8.27% 7.60% 2.03%
Answers
The cost of equity for the given firm is 7.744%, which is closest to 8.27% (Option C)
The cost of equity is a calculation of the expected return on a stock that an investor purchases on the basis of risk and other related factors. In order to calculate the cost of equity, you need to use the Capital Asset Pricing Model (CAPM) formula.
The formula for CAPM is as follows: rE = rF + β (rM - rF)
Where:
rE is the cost of equity,
rF is the risk-free rate,
β is the stock's beta,
rM is the expected market return.
Based on the provided information, we can determine the cost of equity using the above formula. The risk-free rate is 1.4% and the expected market return is 6.6%. The stock's beta is 1.22.
To determine this, we will substitute the given values into the CAPM formula:
rE = 1.4% + 1.22 (6.6% - 1.4%)
rE = 1.4% + 1.22 (5.2%)
rE = 1.4% + 6.344%
rE = 7.744%
Therefore, the answer to this question is 8.27% (Option C)
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Related Questions
Land labor capital on strawberries
Answers
Capital: The money that would be put into the strawberry and used to pay the workers
Labor: Workers that would Lantana and harvest the strawberries
__________ visually shows that the total revenue curve and the total cost curve intersect at a point of zero profit.
A) break-even chart
B) Gantt chart
C) sales response function
D) cross tabulation
E) demand curve
Answers
Answer:
C it would be hope this helped
A tool that has been __________defective will creates headache and irritation. *
2 points
A. Frequently
B. Once a year
C. Once a month
D. Seldom
Answers
Answer:
frequently
Explanation:
I think its frequently
1 Which one of the following is not Which one of the key roles / purposes of marketing within
business?
A To identify potential customer groups
B To inform customers about the business's product or service
C To prepare cash flow forecasts
D To understand customers and their needs
Your answer
i
Answers
Legal tender act 1862 purpose and impact on economy.
Answers
Answer:
The Legal Tender Act allowed the government to print $150 million in paper money that was not backed by a similar amount of gold and silver. ... The government was able to pay its bills and, by increasing the money in circulation, the wheels of Northern commerce were greased.
Explanation:
Suppose the government of Mexico runs a budget deficit. This will result in: A. an increase in interest rates in Mexico and an increase in the value of the peso relative to other currencies. B. a decrease in interest rates in Mexico and an increase in the value of the peso relative to other currencies. C. a decrease in interest rates in Mexico and a decrease in the value of the peso relative to other currencies. D. an increase in interest rates in Mexico and a decrease in the value of the peso relative to other currencies.
Answers
Answer:
I belive Is A Please Tell me if I'm wrong or right
1. List four reasons that businesses extend credit.
2. How does using credit benefit businesses and consumers?
Answers
1.Encourage customers to spend more, which can result in increased sales if receivables are turned to cash;
Increase customer goodwill and build good customer relations;
Make your customers less sensitive to price and more focused on the services you offer.
2.Having credit enables consumers to buy goods or assets without having to pay for them in cash at the time of purchase. Having a good credit record means that a person has an established history of paying back 100% of his/her debts on time
2. Benefits for business:
all 4 points aboveCash flow management: Offering credit can help businesses manage their cash flow, as they can receive payment over a period of time rather than all at once.Benefits for consumers:
Purchasing power: Using credit allows consumers to make purchases that they may not have been able to afford with cash, such as items like a home or a car.Convenience: Using credit cards can be more convenient than carrying cash, as consumers do not have to worry about carrying large amounts of cash or making frequent trips to the ATM.Building credit history: Using credit and making payments on time can help consumers build a positive credit history. This in turn can lead to better credit scores and lower interest rates on future loans.Protection against fraud and errors: Credit cards provide protection against fraud and errors, as consumers can dispute unauthorized charges or errors on their statements.For more on credit refer to: https://brainly.com/question/1590835
What percentage of a fully diluted company do investors typically like to see set aside for attracting future talent and creating incentives and rewards for high performance?a. 5 to10 percent10 to 20 percent20 to 30 percentd. 30 to 40 percent
Answers
Investors typically like to see between (option d.) 30 and 40 percent of a company's fully diluted shares set aside for attracting future talent, creating incentives and rewards for high performance, and providing equity to employees.
Investors typically like to see a certain percentage of a company's fully diluted shares set aside for attracting and rewarding talent. This percentage allows the company to remain competitive when it comes to recruiting and rewarding talented and hardworking employees.The percentage typically recommended by investors is between 30 and 40 percent.This percentage allows the company to remain competitive while also allowing investors to retain a majority stake in the company.This percentage allows the company to remain competitive when it comes to recruiting and rewarding talented and hardworking employees, while also allowing investors to retain a majority stake in the company.
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the magnitude of operating leverage for perkins corporation is 4.5 when sales are $100,000. if sales increase to $110,000, profits would be expected to increase by what percent? a. 4.5% b.14.5% c.45% d.10%
Answers
It would be anticipated that the profit would rise by 45%. The appropriate response to the given question is option (c).
What is Operating Leverage?The percentage of a company's cost structure that is made up of fixed expenses as opposed to variable costs is measured by operating leverage. A corporation is said to have more operating leverage if its fixed expenses are higher than its variable costs.
Magnitude of operating leverage= 4.5
Old sales= $100000
New sales= $110000
Percentage increase in sales:
(New-old)/old = (110,000-100,000)/100,000
= 10%
Consequently, a percentage rise in profit might be anticipated:
sales percentage growth times the degree of operational leverage
= 10% * 4.5
= 45%
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an off invoice allowance is a sales promotion of a price reduction to a retailer: T/F ?
Answers
The statement an off invoice allowance is a sales promotion of a price reduction to a retailer is true because off invoice allowance refers to a sales promotion strategy where a price reduction is provided to a retailer.
An off invoice allowance is a sales promotion tactic used by suppliers or manufacturers to provide a price reduction or discount directly to the retailer. This type of allowance is deducted from the invoice amount, resulting in a lower price for the retailer when they purchase products from the supplier.
The purpose of an off invoice allowance is to incentivize retailers to carry and sell specific products or to encourage larger order quantities. It serves as a form of promotional pricing designed to increase sales, attract retailers, and foster brand loyalty.
By offering a price reduction at the point of purchase, the supplier aims to influence retailers' buying decisions, increase product visibility, and ultimately drive higher sales volumes. The off invoice allowance can be temporary or ongoing, depending on the promotional strategy and business objectives.
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Which of the taxes listed on her Form W-2 do you think Susan might be able to "get
back?"
Answers
The Federal and the state income tax are the axes listed on her Form W-2 she can get back
The taxes thst she can get backUpon the submission of their income tax return at the conclusion of a fiscal year, employees have the opportunity to receive a reimbursement if they contributed an excess amount towards their taxes throughout this financial period.
Such a circumstance may emerge when workers undergo excessive diminutions from their paychecks or meet particular criteria that grant them eligibility for tax credits or deductions.
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Note that common activities are listed toward the top, and less common activities are listed toward the bottom. According to O*NET, what are common work activities performed by Construction Carpenters? Check all that apply. O. Inspecting equipment, structures, or material O. Writing computer programs to perform calculations O. Using knowledge of historical events and their effects on cultures O. Performing general physical activities O. Getting information O. Speaking and writing in a foreign language
Answers
Answer:
The answer is "Choice 1,4, and 5"
Explanation:
The numbering of the choices are missing, which can be defined in the attached file please find it.
Carpenters developers are restoring systems or structures for wooden buildings, like stairs, windows, and doors. It uses the equipment for cutting and shaping wood, plastic, fiberglass, or wallboard. As per O*NET, Building Carpenters could identify the typical work tasks as following:
Equipment, frameworks or material inspection Overall physical activity Knowledge obtainedAnswer:
2,3,4,5
Explanation:
1.) Select which part of the expenditures approach of calculating the GDP is being described: All private consumption in a nation's economy is part of this expenditures approach for calculating the GDP.
sum of all the country's businesses spending on capital
gross imports
consumer spending
sum of government spending
gross exports
2.)Select which part of the expenditures approach of calculating the GDP is being described: Purchase of weapons for the military is part of this expenditures approach for calculating the GDP.
consumer spending
gross imports
sum of all the country's businesses spending on capital
gross exports
sum of government spending
Answers
Answer:
Selection of the part of the expenditures approach of calculating the GDP is being described:
1. All private consumption in a nation's economy is part of this expenditures approach for calculating the GDP.
=
consumer spending
2. Purchase of weapons for the military is part of this expenditures approach for calculating the GDP.
=
sum of government spending
Explanation:
The expenditures approach to Gross Domestic Product (GDP) is calculated as consumption + investment + government expenditure + exports – imports. Consumption refers to the consumer spending while Investment refers to the sum of all the country's businesses spending on capital.
Private consumption is part of the consumer spending when using the expenditures approach for calculating the GDP.
Purchase of weapons for the military is part of government spending.
What is the expenditures approach?Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households on durable and non durable goods + Investment spending by businesses + Government spending + Net export
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Rising interest rates have made borrowing more costly to consumers. As a result
of the most recent increase in interest rates, borrowing and consumption have
fallen throughout the economy, triggering a contractionary period. Growing
uneasy, citizens have been asking Congress to make an official statement as to
how long this contractionary period is expected to last. Which of the following is
an appropriate response?
Answers
Answer:
it depends on the measures taken to ensure that economy is stable.
Answer:
1. it is difficult to say since contractionary periods have varying lengths in different business cycles.
2. shock
3. high unemployment
4. two
5. expansion stage of the business cycle
Explanation:
just took it
an employees social security contributions are invested in a general fund account and will be made available for the
Answers
When an employee's social security contributions are invested in a general fund account, the funds are pooled together with contributions from other employees.
Social security contributions made by employees are typically mandated by government regulations and serve as a form of insurance for future financial security. When these contributions are invested in a general fund account, the funds are aggregated and managed collectively. This pooling of contributions allows for efficient administration and distribution of social security benefits.
The general fund account serves as a reservoir of funds that can be utilized to provide benefits to eligible individuals based on the specific social security programs in place. These programs may include retirement pensions, disability benefits, survivor benefits, and healthcare coverage. The availability of contributions in the general fund ensures that individuals who meet the eligibility criteria can receive the benefits they are entitled to.
The funds in the general account are typically invested to generate returns and preserve their value over time. The investment strategies may vary depending on the specific regulations and policies of the social security system in a given country. The aim is to maintain the purchasing power of the contributions and generate income to support the payment of benefits to current and future beneficiaries.
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Which suggested change would cause the greatest increase in the amount of overload?
Answers
The adding more weight and increasing the distance cause the greatest increase in the amount of overload. The second fundamental element is overload, which means that in order to develop any the component of physical fitness, the individual must constantly increase the demands placed on the relevant body systems.
To gain strength, for example, heavier things must be lifted progressively. A program that employs the overload principle would recommend squatting a prescribed weight for five sets for one week, then squatting a slightly greater load for five sets the following week, and gradually increasing the loads each the subsequent week.
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1. Which of the following is NOT a correct component of FedEx’s package tracking system?
a) The data are transmitted to a central computer and stored for retrieval
b) The inputs include package information, customer signature, pickup and delivery
c) The output includes pickup and delivery times, location while en route, and package recipient
d) A customer can track a package using FedEx’s tracking system via internet network
Answers
The correct answer is that all the components listed are correct components of FedEx’s package tracking system. Therefore, none of them are incorrect components of FedEx's package tracking system.
The package tracking system of FedEx comprises four significant components which include input, process, output, and feedback.
The inputs of the package tracking system of FedEx consist of package information, customer signature, pickup, and delivery. The process includes the scanning of packages, transmitting data to the central computer, and storing them for later retrieval.
Outputs include pickup and delivery times, location while end route, and package recipient. FedEx’s tracking system can be used by customers to track a package through an internet network.
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Suppose there is a simple hypothetical economy in which the only industry is cloud computing. In the cloud computing field, productivity—the amount of goods and services a worker can produce per hour—is measured by the number of lines of code one programmer authors per hour.In the following table, select the appropriate productivity determinant that represents each example. Human Capital per Worker Natural Resources per Worker Examples The rare earth metals that serve as inputs to production of computers The server hardware on which data is stored An autocomplete plug-in that allows programmers to write code more rapidly The additional education workers receive from new computer science course offerings O O Physical Capital per Worker Technological Knowledge O O
Answers
Human Capital per Worker: The additional education workers receive from new computer science course offerings.
What is education?Education is the process of teaching, learning, and acquiring knowledge and skills. It is a lifelong process that begins at birth and continues throughout a person’s life. Education equips individuals with the knowledge, skills, and values to become productive members of society. It is a key factor in helping people to develop the knowledge, skills, and values that can be used to improve their lives, their communities, and the world. Education can be formal, such as through universities and other institutions, or informal, such as through experience and self-study.
Physical Capital per Worker: The server hardware on which data is storedTechnological Knowledge: An autocomplete plug-in that allows programmers to write code more rapidly
Natural Resources per Worker: The rare earth metals that serve as inputs to production of computers.
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is 6 ft greater than 72 inches
Answers
A record you keep of deposits made and checks written is called an _____.
Answers
Answer: Currency
A record you keep of deposits made and checks written is called an currency.
Explanation:
Hope this helps :D
QuickMovers limits the size of the packages it delivers to 75 pounds. This is
an example of what type of requirement?
O A. Internal
O B. Voluntary
O C. Government
O D. External
Answers
(If I’m right) mark as brainliest
Answer:
internal
Explanation:
i took the test
Question Five ( 7 Marks ) The following information is budgeted for McCracken Plumbing Supply Company for next quarter : April May June
Sales.....$ 110,000 $ 130,000 $ 180,000
Merchandise purchases.....$ 85,000 $ 92,000 $ 105,000
Selling and administrative expenses ..... $ 50,000b $ 50,000 $ 50,000
All sales at McCracken are on credit . Forty percent are collected in the month of sale , 58 % in the month following the sale , and the remaining 2 % are uncollectible . Merchandise purchases are paid in full the month following the month of purchase . The selling and administrative expenses above include $ 8,000 of depreciation on display fixtures and warehouse equipment . All other selling and administrative expenses are paid as incurred . McCracken wants to maintain a cash balance of $ 15,000 . Any amount below this can be borrowed from a local bank as needed in increments of $ 1,000 . All borrowings are made at month end . Required : Prepare McCracken's cash budget for the month of May . Use good form . McCracken expects to have $ 24,000 of cash on hand at the beginning of May
Answers
McCracken Plumbing Supply Company's cash budget for the month of May shows an ending cash balance of $8,400, indicating a need to borrow $6,600 to maintain the desired cash balance.
To prepare McCracken Plumbing Supply Company's cash budget for the month of May, we need to consider the cash inflows and outflows based on the given information. Here's the calculation:
Beginning cash balance (May): $24,000
Cash inflows:
Sales collected in May (40% of April sales): $110,000 * 40% = $44,000
Sales collected in May (58% of May sales): $130,000 * 58% = $75,400
Total cash inflows: $44,000 + $75,400 = $119,400
Cash outflows:
Merchandise purchases paid in May (April purchases): $85,000
Selling and administrative expenses (including depreciation): $50,000
Total cash outflows: $85,000 + $50,000 = $135,000
Net cash flow: Cash inflows - Cash outflows
Net cash flow: $119,400 - $135,000 = -$15,600
Ending cash balance (May): Beginning cash balance + Net cash flow
Ending cash balance: $24,000 - $15,600 = $8,400
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Aldo Vitterini, the firm’s CEO, is concerned about his firm’s future, however. He is, in fact, considering moving his firm’s headquarters from Innsbruck, Austria, to Bolzano, in Italy, to take advantage of the availability of lower costs of newspaper, magazine, and radio advertising when booked from an Italian source. He is also concerned that the appearance on the rivers of the area of vessels from Switzerland, Slovenia, and even Hungary may negatively impact his business. Vitterini's idea of moving his corporate headquarters to Bolzano is motivated by:
Answers
Answer:
These are the answer choices for the question:
- lower costs of promotion
- better service to customers
- lower tax rate
- more customers
And this is the correct answer choice:
- lower costs of promotion
Explanation:
We can see in the question, that Vitterini main rationale for moving his firm's headquarters from Innsbruck to Bolzano, is that the costs of materials, associated with the promotion services of the company, are cheaper: newspaper, magazine, and radio advertising.
PLSS HELP -->> societies make decisions about who gets the goods they produce by:
A. dividing goods based on the factors of production used to make them
B. determining whether a good has a high enough level of scarcity
C. considering whether the government should distribute the goods
D. differentiating between goods created using physical and human capital
Answers
Answer: C
Explanation: it’s c
Societies decide the distribution of goods being produced by considering if the government should take control of the same.
What is distribution of goods?The allocation of goods being produced in a society, which may or may not be under authority of a person, is known as distribution of goods.
Hence, option C holds true regarding the distribution of goods.
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1. below is an example of a diwalidiyas. Extract the different parts of the diyas by making a sketch emphasizing the use of lines, shape forms and color. 2. you may put some accent to make your work more creative .
Answers
Answer:
need more info (incomplete)
Explanation:
A Nike Hoodie has a retail price of $99.00 and it costs the retailer $49.50. What is the mark-up
Percentage?
Answers
Answer:
100%
Explanation:
Mark-up is the difference between selling price and cost price
Selling price =$99.00
Cost price = $49.50
Mark up = $99- 49.50
=$49.50
As a percentage
= $49.50/$49.50 x 100
= 1 x 100
= 100%
list the four factors of production
Answers
Answer:
Land, Labour,Capital and Entrepreneur
Explanation:
Land is a natural resource which can be used to create goods or service
Labour is the workdone by the peoplw in the workforce
Capital is the man-made goods that are used in the production of goods
Entrepreneurs are people who take risks in search of profit
The survey that found 75% of consumers would consider going to another company after a bad customer service experience surprises some people because it seems almost too low. Why might that other 25% of consumers not be bothered by a bad customer service experience?
Answers
Answer:
They might not be bothered because nothing has happened yet.
Explanation:
The other 25 percent might not use it a lot.
Many communities experience the tragedy of the commons. one way a local community might regulate a shared and limited resource and reduce the tragedy of the commons is to
a. eliminate ownership of the resource and make them available to all
b. reduce the cost of access of the resources
c. offer subsides to users of the resources in the form of tax breaks
d. divide the resource into parcels and assign them to individuals
Answers
The economics is prone to different kinds of problem. One way a local community might regulate a shared is to divide the resources into parcels and assign them to individuals.
The tragedy of the commons is known to be type of problem in economics. It often takes place when a person fail to perform their duties to the well-being of society and instead are in the pursuit of personal gain.This problem often leads to over-consumption and then the depletion of the common resource, to everybody's failure.
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hich of the following statements are true? multiple select question. if market value is less that actual cost, the inventory must be valued at actual cost. the most common practice is to apply lower-of-cost-or-market to each individual inventory item. gaap requires that ending inventory be reported at lower-of-cost-or-market, regardless of the cost flow method used.
Answers
The following statements that are true are GAAP requires that ending inventory be reported at the lower-of-cost-or-market, regardless of cost flow method used and if market value is less than actual cost.
What is market value?Market value is the current estimated worth of a company or asset based on its perceived value in the marketplace. It is determined by the forces of supply and demand, and reflects the price at which buyers and sellers are willing to transact. Market value is influenced by various factors such as financial performance, industry trends, economic conditions, and investor sentiment. It is often used by investors, analysts, and business owners to assess the potential profitability and growth prospects of a company or asset. Market value is not a fixed or static measure, and can fluctuate based on changing market conditions and events. It is an important metric for making investment decisions and evaluating the performance of a business.
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