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Zolol [24]
1 year ago
9

The stock in Bowie Enterprises has a beta of 1.10. The expected return on the market is 12.40 percent and the risk-free rate is

3.21 percent. What is the required return on the company's stock
Business
1 answer:
MrMuchimi1 year ago
4 0

Based on the beta of Bowie Enterprises stock, the expected return on the market, and the risk free rate, the required return should be 13.32%.

<h3>What is the required return?</h3>

You can find this using the Capital Asset Pricing Model:

Required return = Risk free rate + Beta x (Market return - risk free rate)

Solving gives:

= 3.21  + 1.10 x (12.40 - 3.21)

= 13.32%

In conclusion, the return is 13.32%.

Find out more on the Capital Asset Pricing Model at brainly.com/question/13937576.

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An argument for protectionism could be that imports may actually be harming domestic producers, which as we can see from President Trump's rhetoric, we can deduce that cheap imports from China will take sales revenue away from American producers and potentially cause them to lose customers and close down. Another argument for is that quotas and tariffs will make imports more expensive, which may make domestic products more price competitive.

Regarding the opinions, come up with it yourself. Think of the pros and cons and make a balanced judgement.
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Which of the following is NOT a legitimate use of the Internet for businesses?
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Foster, Inc., purchased a truck by paying $5,000 and borrowing the remaining $30,000 required to complete the transaction. Ident
Sedaia [141]

Answer:

Foster Inc.'s assets will decrease by a net amount of $30,000.

The Company's liabilities will increase by $30,000.

Explanation:

The price of the assert is $5,000 + $30,000 = $35,000

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Suppose that a car manufacturer discovers that it can lower its average costs if it diversifies its operation by also producing
frutty [35]

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When the car manufacturer diversifies his operation by producing pickup trucks and SUVs, there'll be a reduction in the average unit cost of output. This term refers to Economies of scale.

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melomori [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

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Break-even point in units= fixed costs/ contribution margin per unit

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