1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Why is personal finance dependent upon your behavior?
AfilCa [17]

Personal finance depends on your behavior because you are the manager of your financial resources, so it is necessary to carry out personal planning of your finances.

Personal financial behavior can be measured by six dimensions, which are:

  1. Emergency funds
  2. Indebtedness level
  3. Savings rates
  4. Asset diversification
  5. Retirement Preparation
  6. Wealth distribution

Personal finances are directly impacted by our behaviors and decisions. Some of these behaviors are subconscious and difficult to identify, but they should be analyzed in case they negatively influence your finances.

Therefore, financial planning is essential to use your financial resources consciously and in accordance with your goals.

Learn more about personal finance here:

brainly.com/question/2961383

8 0
2 years ago
Sweet Dreams sells 15,000 pillows per year for $25 per unit. Variable cost per unit is $14. Sweet Dreams wants to improve custom
Radda [10]

Answer:  The answer is $27.25

Explanation:

Let x be the price Sweet dreams will charge to earn the profit of $75,000

New sales units = 20,000

New variable cost = $19

We know, Sales - Variable cost - Fixed cost = Profit

Now applying the equation,

 20,000x - (20,000*19) - 90,000 = $75000

 20,000x = $75,000 + 380,000 + 90,000

therefore, x = $27.25

So, Sweet Dreams will charge $27.25 to earn the same profit it is earning now i.e. $75000 per year.

4 0
2 years ago
The price a property will bring when neither the buyer nor the seller is acting under duress and it has been on the market for a
PilotLPTM [1.2K]

Answer:

The answer is arms- length transaction

Explanation:

The price a property will bring when neither the buyer nor the seller is acting under duress and it has been on the market for a reasonable length of time is defined as arms- length transaction

7 0
3 years ago
Marisol recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the ho
lukranit [14]

Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use price skimming

<h3>What is price skimming?</h3>

Price skimming is a pricing strategy that a company can use when launching a new product or service.

Price skimming is commonly used for new technologies. DVD players are an excellent example of this. When DVD players first became available in the late 1990s, they could cost up to $1,000. If you do a quick search on Amazon, you'll find that a new DVD player costs only $33.

The pricing strategy will be influenced by the stage of the product's life cycle. The process of charging a relatively high price for a product is referred to as price skimming. When a product is new to the market, skimming is commonly used (in its introduction or growth phase)

To know more about price skimming follow the link:

brainly.com/question/24263055

#SPJ4

3 0
1 year ago
Assessing the communication forms and orientations of coworkers and assessing their sources of identity is an example of which p
Lostsunrise [7]

Answer:

Attending

Explanation:

There are four steps in the risk negotiation cycle that includes attending, sensemaking, transforming and maintaining.

While assessing and analyzing the forms of communication and the workers orientations with respect to identify the sources reflects the attending phase whether the employees attend the orientations and according to that the analyzed could be done

Therefore this is an attending phase  

6 0
3 years ago
Other questions:
  • Scenario 10 Suppose that in Country A, one worker per day can produce either 120 units of food or 50 units of capital goods; whi
    6·1 answer
  • The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for
    11·1 answer
  • Herb Company manufactured more product than it was able to sell during the current year. If the salaries of the sales staff of H
    13·1 answer
  • Duke is a particularly highly skilled negotiator. the law firm that hires duke is able to collect twice as much revenue per hour
    8·1 answer
  • When Padgett Properties LLC was formed, Nova contributed land (value of $200,000 and basis of $50,000) and $100,000 cash, and Os
    12·1 answer
  • Texas Inc. has 10,000 shares of 6%, $125 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock ou
    13·1 answer
  • 3. If you are the victim of fraud in Oklahoma, the best place to start is by
    13·1 answer
  • 1. Describe the benefits of good strategic planning? Define and give examples of key terms of strategic management?
    7·1 answer
  • because research is blank______, it is important to figure out beforehand exactly what problem needs to be solved.
    6·1 answer
  • the excluding organization, the passive club, and token acceptance symbolic equity, substantial equity, and the including organi
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!