Answer:
Required rate of return on clover's stock is 8.99%
Explanation:
The required rate of return on Clover's stock can be computed using Miller and Modgliani capital asset pricing model formula given below:
Ke=Rf+beta*(Rm-Rf)
Ke is the required rate of return, the unknown
Rf is the risk free rate of return of 4.00%
beta for Clover is 0.80
Rm is the not known as well but can computed using the Parr paper's details below:
beta is 1.442
required return IS 13%
13.00%=4.00%+1.442*(Rm-4.00%)
13%-4%=1.442*(Rm-4.00%)
9%=1.442*(Rm-4.00%)
9%/1.442=Rm-4%
6.24%
=Rm-4%
Rm=6.24%+4%
Rm=10.24%
Now the required return on Clover's stock can be computed
Ke=4%+0.8*(10.24%-4%)
Ke=8.99%
Answer: Pluralistic organization
Explanation: Pluralistic organization is an organization that is made up of diverse group of people,it may include people of different race, gender, Sociocultural background and makes efforts to ensure that they maintain harmony,pluralistic organization is essential for global Integration and it is practiced by most international organization like the United Nations, World health organization and business entities.
Answer:
Positive & High; Less
Explanation:
For Example:
The economic growth of countries in the Middle East are highly depended on international oil prices, the decline in the international oil prices led to the lower growth rate in all these countries; thus their growth are positively correlated.
The diversification benefit for a firm would be less beneficial in these countries as change in any common macro variable of these highly correlated countries would have an impact on economic growth of these countries. However, the diversification benefit would be higher in those set of countries that are less integrated
.
Answer:
a. $2,250
b. $2,015
c. $16,926
Explanation:
1. The computation of interest expense is shown below:
= Principal × rate × (number of months ÷ total number of months)
= $54,000 × 10% × 5 months ÷ 12 months
= $2,250
The five months are computed from August 1 to December 31
2. The computation of sales tax payable is shown below:
= Cash register × sales tax rate ÷ (100 + sales tax rate)
= $42,315 × 5% ÷ (100 + 5%)
= $42,315 × 5 ÷ 105
= $2,015
3. The computation of the subscription revenue is shown below:
= Advanced collected × (number of months ÷ given months)
= $42,315 × (2 months ÷ 5 months)
= $16,926
The two months are computed from November 1 to December 31
Is this a multiple choice question? Is there a word bank? If not, I'm not quite sure.