Answer:
heck no I'm definitely not writing that for you. ur lazy.
Option b. 7.78% is the correct answer. The cost of equity from retained earnings is 7.78% as per the CAPM approach
The relationship between systematic risk, or the general dangers of investing, and expected return for assets, particularly stocks, is described by the Capital Asset Pricing Model (CAPM).
A linear relationship between the required return on investment and risk is established by this financial model.
Retained earnings refer to the total earnings that a company has generated from its operations minus the dividends distributed among shareholders. The retained earnings are earnings reinvested in the business.
The calculation is shown below.
Cost of equity = Risk-free rate + (beta * Market risk premium)
Cost of equity = 4.10% + (0.70 * 5.25%)
Cost of equity = 4.10% + 3.675%
Cost of equity = 7.77% or 7.78%
Learn more about retained earnings:
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Answer:
1,950 Units
Explanation:
The difference between the opening and closing balances of units in the blending department is as a result of the number of units transferred to the department and the additional units started by the department.
Let the number of units transferred out of the department be Y
Then;
400 + 1800 - Y = 250
Y = 400 + 1800 - 250
Y = 1950
The number of units transferred out of the blending department during the month is 1950.