One advantage of having an ATM card is that it can be used to

Steady Company’s stock has a beta of 0.20. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate of

777dan777 [17]

Answer:

the estimation of the cost of equity is 7.4%

Explanation:

The computation of the estimation of the cost of equity is shown below:

Here we used the Capital Asset Pricing model formula i.e.

Cost of equity = Risk free rate + Beta × market risk premium

= 6% + 0.20 × 7%

= 6% + 1.4%

= 7.4%

Hence, the estimation of the cost of equity is 7.4%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

5 0

3 years ago

A 10-year German government bond (bund) has a face value of €100 and a coupon rate of 5% paid annually. Assume that the interest

cestrela7 [59]

Answer:

€92.64

Explanation:

The present value i.e PV formula is used that is shown in the attached spreadsheet

The NPER reflects the time period.

Given that,

Future value = €100

Rate of interest = 6%

NPER = 10 years

PMT = €100 × 5% = €5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be €92.64

8 0

3 years ago

You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equ

docker41 [41]

Answer:

$20.52

Explanation:

Given that

Estimated dividends for next period = $3.90

Required rate of return = 25%

Growth rate = 6%

The computation of Price of stock is given below:-

Price of stock = Estimated dividends for next period ÷ (Required rate of return - Growth rate)

= $3.90 ÷ (0.25 - 0.06)

= $3.90 ÷ 0.19

= $20.52

Therefore for computing the price of stock we simply applied the above formula.

5 0

4 years ago

Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses a

Mashcka [7]

Answer:

Total allocated costs= $63,221.7

Explanation:

First, we need to calculate the allocation rates based on the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Salaries= 30,000/2,700= $11.11 per number of employees

Depreciation= 20,500/204,000= $0.10 per cost of goods sold dollar

Advertising= 41,500/804,000= $0.052 per net sales dollar

Now, we can allocate costs to Grinding:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Salaries= 11.11*1,620= 17,998.2

Depreciation= 0.10*204,000= 20,400

Advertising= 0.052*477,375= 24,823.5

Total allocated costs= $63,221.7

7 0

3 years ago

Take example to evaluate how luxury brands create symbolic value to global consumer

MaRussiya [10]

Explanation:

because of the popularity

4 0

3 years ago