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Stolb23 [73]
2 years ago
6

O'brien inc. has the following data: rrf = 5.00%; rpm = 6.00%; and b =+0.70. what is the firm's cost of equity from retained ear

nings based on the capm?
Business
1 answer:
algol132 years ago
7 0

The company's cost of equity is0.92 % of retained earnings according to the capm.

The cost of equity for a corporation is the amount that the market is willing to pay to own an asset and take on ownership risk. The two common methods for determining the cost of equity are the capital asset pricing model and dividend capitalization model. On the right side of the balance sheet, you can see a list of the company's debt and equity accounts. The cost of capital refers to the price a business must pay to finance its operations through debt, equity, or a mix of the two.

b = 0.70, rs = rRF + b(RPM), and rRF + b(RPM) =5.00% RPM6.00% were lent to us.

Learn more about cost of equity here

brainly.com/question/14041475

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4 years ago
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Answer:

The correct answer is letter "A": the price of the good to the consumer and producer.

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Thus, <em>signaling is an aspect of the market system inherent to the price that influences in the behavior of buyers and sellers.</em>

6 0
3 years ago
If a shortage exists in the hamburger market, then the current price must belower than the equilibrium price. For the market to
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For the market to reach equilibrium, you would expect prices to rise.

<h3>What is a shortage?</h3>

A shortage exists when quantity demanded exceeds quantity supplied. This is because price is below equilibrium price. Equilibrium price is the price at which quantity demanded is equal to quantity supplied.

For a shortage to be resolved, prices would rise until equilibrium price is reached.

To learn more about equilibrium, please check: brainly.com/question/26075805

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