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zzz [600]
1 year ago
14

scanlon inc.'s cfo hired you as a consultant to help her estimate the cost of capital. you have been provided with the following

data: r rf
Business
1 answer:
sp2606 [1]1 year ago
3 0

The cost of equity is 10.6%.

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

The calculation of the question is shown as follows:

Cost of equity = Risk - free rate + (beta*market risk premium)

Cost of equity = 3.25% + (1.4* 5.25%)

Which is equal to 3.25% + (7.35%)

hence cost of equity is 10.6%.

<h3>What are retained earnings?</h3>

Retained earnings refer to the total amount of earnings that a company generates from its operations. This subtracts the dividends shared among stockholders. The retained earnings are then reinvested in business.

To know more about retained earnings, visit:

brainly.com/question/13980094

#SPJ4

The complete question is:

Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: r_RF = 3.25%; R_PM = 5.25%; and b = 1.40.

Based on the CAPM approach, what is the cost of equity from retained earnings?

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Velco purchased a delivery truck at the beginning of Year 1 at a cost of $60,000. The truck is estimated to have a useful life t
Alenkinab [10]

Answer:

$10,000

Explanation:

Depreciation of an asset is the systematic allocation of estimated cost to an asset over time. It is added over the years to get the accumulated depreciation that is netted off the cost to get the net book value.

It is given as

Depreciation = (Cost - Salvage value)/Estimated useful life

Depreciation expense for Year 1 (the first year of the asset's life) under the straight-line method would be

= ( $60,000 - $10,000 ) / 5

= $50,000/5

= $10,000

5 0
2 years ago
What is the first thing you should do when a customer requests a sale item once you’ve determined that item is out of stock? Tel
ipn [44]

Answer:

Tell the customer when you store’s next delivery day is and to come back then Issue the customer a raincheck for the item that is out of stock

Explanation:

Customer<em> retention</em> is important as well as <em>meeting their specific needs</em>. It is unwise to turn back a customer and refer them to a competitor, this may mean loss of business (currently and in the future). Also it is unwise to offer a substitute item as this will not meet their needs (though you may want to inform them of the substitute item if they are interested).  Issue the customer a raincheck for the item that is out of stock is the best way to go and keep the business.

7 0
2 years ago
which is an implied power of the federal government? raising taxesregulating tradedrafting soldiersdeclaring war
mars1129 [50]

Drafting soldiers is an implied power of the federal government.

According to Article I, Congress has the authority to make provisions for the general welfare and common defense of the United States. However, the establishment of a forced draft for enlistment in the military is an implicit power that has been exercised at various points in American history, from the Civil War until 1973.

Another well-known example of implied powers is the ability to form an army through a draft. For instance, the Constitution does not expressly permit the use of a draft prior to America's participation in World War II.

The ability to declare war, provide for and maintain a Navy, create and fund Armies, and equip, direct, and summon a militia all fall under the purview of Congress.

To learn more about Constitution refer to:

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7 0
2 years ago
Belltone Company made the following expenditures related to its 10-year-old manufacturing facility:
scoundrel [369]

Answer:

The journal entries are as follows:

(1) Accumulated depreciation - Building A/c Dr. $250,000

                To Cash                                                                  $250,000

(To record the replacement of heating system)

(2) Building A/c Dr. $750,000

          To cash                        $750,000

(To record the new wing)

(3) Maintenance expense A/c Dr. $14,000

                To cash                                       $14,000

(To record the maintenance expense)

(4) Equipment A/c Dr. $50,000

           To cash                          $50,000

(To record the new equipment)

6 0
3 years ago
You are comparing two annuities that offer quarterly payments of $2,500 for five years and pay .75 percent interest per month. Y
shepuryov [24]

Answer:

The answer is: Annuity B has a smaller present value than annuity A.

Explanation:

The present value is the current value of a future cash flow. Money today is worth more than money earned tomorrow or in a year. So the sooner you receive a payment, its present value will be higher.

For this question, annuity A starts paying TODAY (higher present value), while annuity B starts paying in ONE MONTH.

7 0
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