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Zepler [3.9K]
1 year ago
14

The rhaegel corporation's common stock has a beta of 1. if the risk-free rate is 4.5 percent and the expected return on the mark

et is 15 percent, what is the company's cost of equity capital?
Business
1 answer:
Ksju [112]1 year ago
6 0

Cost of equity = Risk-free rate + (Beta * (Market return - Risk-free rate))

Cost of equity = 4.5% + (1 * (15% - 4.5%))

Cost of equity = 4.5% + (1 * 10.5%)

Cost of equity = 4.5% + 10.5%

Cost of equity = 15.00%

<h3>What is stock?</h3>
  • Stock in the financial industry refers to the shares into which ownership of a corporation or company is divided.
  • A single share of stock represents a fractional ownership interest in the company based on the total number of shares.
  • The shareholder (stockholder) will then typically be entitled to that portion of the company's earnings, proceeds from the sale of company assets, or voting rights, with these rights frequently being distributed in proportion to the amount of money each stockholder has invested.
<h3>Why would one use stock?</h3>
  • Stock is typically used as a neutral foundation for recipes.
  • It's meant to increase mouthfeel but not flavor intensity.
  • Remove all meat from the bones before using them to make stock.
  • You shouldn't add any additional flavors or aromatic items if you want to make a neutral stock.

Learn more about stock here:

brainly.com/question/14649952

#SPJ4

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lapo4ka [179]

Answer:

The correct option is D: $8.60

Explanation:

Average fixed cost of Pretty Flowers = $5.40

Average variable costs of Pretty Flowers = $3.20

We are asked to calculate the Average total cost of Pretty Flowers at this current level

Hence:

Average total cost Pretty Flowers = Average fixed cost of Pretty Flowers + Average variable costs of Pretty Flowers

If we substitute the value of these variables in the equation, we get:

Average total cost Pretty Flowers = $5.40 + $3.20 = $8.60

3 0
3 years ago
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Which of the following is a comparative advantage?
Advocard [28]
Where are the options?
4 0
3 years ago
Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specified a delivery d
geniusboy [140]

Answer:

recognized on March 31 after the delivery of the equipment

Explanation:

Revenue is recognized once the recognition criteria is met. These criteria includes;

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Given that the contract specified a delivery date of March 1.

The equipment was not delivered until March 31 and as such, the revenue for the contract should be recognized on March 31 after the delivery of the equipment.

6 0
3 years ago
Patricia McDonald has determined that the value of her liquid assets is $4,600, the value of her real estate is $134,000, the va
denis23 [38]

Answer:

Net worth = $169,900

Explanation:

Patricia's net worth is the difference between her assets and liabilities. It is an important measure to guage the financial health of an individual or business.

Total assets= 4,600+ 134,000+ 58,000+ 74,000

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5 0
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= $910,000

3 0
3 years ago
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