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Stolb23 [73]
1 year 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:
algol131 year 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

#SPJ4

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Dave's Auto Supply custom mixes paint for its customers. The shop performs a weekly inventory count of the main colors used for
Elenna [48]

Answer:

sry I just wanted the points I'm in middle school so I don't know this stuff either but can you give free brainlyest I'm soo close to my next rank I'd really appreciate it if you would

5 0
3 years ago
In an effort to prevent future financial crises like the stock market crash of 1929, in the 1930s Congress: Multiple Choice pass
kumpel [21]

In an effort to prevent future financial crises like the stock market crash of 1929, in the 1930s Congress formed the FDIC.

<h3>What is the FDIC?</h3>

The Federal Deposit  Insurance Corporation (FDIC) was formed by th Congress after the stock market crash of 1929.Bank run was attributed to be one of the causes of the great depression. The FDIC increases confidence of depositors in banks because they insure the deposit of bank customers.

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6 0
2 years ago
Jamie is researching places to live after graduating college he asked you I keep coming across as phrase cost-of-living I’ve nev
Klio2033 [76]

Answer:

The cost of living refers to the prices of goods and services needed to sustain an average level standard of living in an area

Explanation:

The cost of living refers to the cost of keeping up with a given standard of living. It is the amount Jamie would need to keep up with basic expenses such as food, housing, clothing and medical care. Cost of living compares the expense between living in two different areas. Jamie's cost of living is tied to his wages and it can be measured using what is called purchasing power parity.

6 0
3 years ago
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual
xenn [34]

Answer:

Location A is superior to up 40 units. From there Location B is better

Explanation:

Giving the following information:

Location A:

Fixed costs of $100,000

Variable costs of $13,000 per unit.

Location B:

Fixed costs of $300,000.

Variable costs of $8,000 per unit.

The finished items sell for $18,000 unit.

Contribution margin Location A= 18000-13000= 5,000

Contribution margin Location B= 18000 - 8000= 10,000

Income formula location A= 5000*Q - 100000

Income formula location B= 10000*Q- 300000

5000*Q - 100000= 10000*Q - 300000

200000= 5000Q

Q= 40 units

Location A is superior to up 40 units. From there Location B is better.

6 0
4 years ago
Which of these is NOT a safe skill to employ in the presence of road workers?
QveST [7]

Answer:

  • <em><u>C. Drive at the posted speed limit</u></em>

Explanation:

The answer choices for this question are:

  • A. Keep alert and watch out for construction barrels or cones
  • B. Slow down even if you don't think you'll hit a road worker
  • C. Drive at the posted speed limit
  • D. Keep as much distance as you can while navigating around them

Since the conditions of the road are not the best, you should drive below the posted speed of limit.

The only presence of workers on the road represent a risk for them and for you.

The number of lanes are reduced, the road could present potholes, dirt, stones, or even some substances that make the pavement slippery. You could not have good visibility.

All those risks make that you have to be extremely careful, reduce your speed, lower than than the posted speed limit.

Thus, you should:

  • A. Keep alert and watch out for construction barrels or cones
  • B. Slow down even if you don't think you'll hit a road worker
  • C. <u>NOT </u>drive at the posted speed limit
  • D. Keep as much distance as you can while navigating around them

8 0
3 years ago
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