Answer:
The sections of the career plan that best corresponds to the following information are:
Self-assessment. I am very good at interacting with young children.
Career exploration. I will need to complete an apprenticeship.
Career identification. Within ten years, I will take and pass an exam to be licensed as a Lawyer.
Action plan. I will start and run my own car repair company.
Explanation:
The reasons behind those answers are: First self-assessment consists of identifying our strengths and opportunity areas. Second, career exploration consists of the things I need to do to find my vocation and be ready for the labor market. Career identification because once the path is decided the subject needs to identify his or her area of preference to be the professional she or he wants to be. The action plan, it describes the process to achieve the objective of the subject considering the objective.
Answer:
5%
Explanation:
In order to compute the abnormal return first we have to find out the actual return which is shown below:
Actual return is
= ($21 - $18 + 1.32) ÷ ($18) × 100
= 24%
And, the expected return is
= Risk free rate of return + Beta × (Market rate of return - risk free rate of return
= 7% + 1.20 × (17% - 7%)
= 7% + 1.20 × 10%
= 7% + 12%
= 19%
So, the stock abnormal return is
= 24% - 19%
= 5%
Answer:
ROE= 6%
Explanation:
Return on equity is the measure of a business profitability as related the owner's equity. It shows how well a company is making profits on shareholder funds.
Return on investment (ROE)= Profit Margin * Capital intensity ratio * Equity multiplier
To calculate the profit margin
Profit margin= Net income/Gross Income
Profit margin= 42,800/947,100
Profit margin= 0.045
Substitute in formula for ROE
ROE= 0.045* 0.87* 1.53
ROE= 0.06= 6%
What are the answer choices?
Answer:
11.99%
Explanation:
For computing the estimation of cost of equity, first we have to determine the cost of equity based on CAPM which is shown below:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5% + 1.1 × 7%
= 5% + 7.7%
= 12.7%
The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same is shown in the computation part.
Now the cost of equity based on growth rate which is shown below:
= Current year dividend ÷ price + Growth rate
where,
The current dividend would be
= $1.40 + $1.40× 7%
= $1.40 + $0.098
= $1.498
The other things would remain the same
So, the cost of common equity would be
= $1.498 ÷ $35 + 7%
= 0.0428 + 0.07
= 11.28%
Now the best estimation would be
= (12.7% + 11.28%) ÷ 2
= 11.99%
