21. which of the following sections is responsible for providing communication planning and resources?

The risk-free rate is 5%; Stock A has a beta of 2.0; Stock B has a beta of 1.0; and the market risk premiumis positive. Which of

butalik [34]

Answer:

C) If Stock B's required return is 11%, then the market risk premium is 6%.

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

The (Market rate of return - Risk-free rate of return) is also known as the market risk premium

If we take the required return is 11%, so the market risk premium would be for stock B

11% = 5% + 1 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 6%

If we take the required return is 11%, so the market risk premium would be for stock A

11% = 5% + 2 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 3%

Hence, the correct option is C

3 0

3 years ago

Which diagram arranges the types of business organizations from the most

Zinaida [17]

Can you show the diagram

3 0

3 years ago

Read 2 more answers

Tenant terrell and landlord lorna enter into a commercial agreement wherein terrell will lease a small office space in a strip m

krok68 [10]

After entering into a commercial lease agreement, the answer is since there is no right of first refusal, all Terrell can do is ask Lorna whether she will lease the adjoining space to him.

<h3><u>What is a commercial lease agreement?</u></h3>

A commercial lease is an agreement for the rental of property between a landlord and a company. Because renting costs less money than buying, most businesses will prefer to do so.
Because the terms are changeable and change significantly from lease to lease, commercial lease agreements are more difficult than residential leases.
Understanding the terms of the lease, which outline each party's obligations and rights, is crucial before signing a business lease.

Verify that the conditions of a commercial lease agreement will suit the demands of the company before signing. Unfavorable outcomes may result from failing to establish requirements before signing a lease.

Know more about commercial lease agreement with the help of the given link:

brainly.com/question/14479023

#SPJ4

6 0

2 years ago

Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000

avanturin [10]

Answer:

Option (D) is correct.

Explanation:

Preferred dividend per year:

= (Outstanding preferred stock × Par value of preferred stock ) × 5% preferred stock

= (1,000 × $100) × 5%

= ($100,000) × 5%

= $5,000

Any balance left over would be paid to common stockholders.

Year 1:

Paid to preferred stockholders = $2,000

Paid to common stockholders = 0

Year 2:

Paid to preferred stockholders = $5,000

Paid to common stockholders = ($6,000 - $5,000)

= $1,000

Year 3:

Paid to preferred stockholders = $5,000

Paid to common stockholders = ($32,000 - $5,000)

= $27,000

Therefore,

Total amount of dividends paid to preferred Shareholders:

= Year 1 + Year 2 + Year 3

= $2,000 + $5,000 + $5,000

= $12,000

Total amount of dividends paid to common Shareholders:

= Year 1 + Year 2 + Year 3

= $0 + $1,000 + $27,000

= $28,000

5 0

3 years ago

Consider the market for bagels, which is currently at equilibrium, and where Pbagel and Qbagel denote the price and quantity of

UNO [17]

Answer:

please refer to attachment for more explanation

Explanation:

a. a. Since both goods are complementary goods an increase in the price of cream cheese would cause equilibrium price and quantity of bagel to decrease.

b. If the price of the substitute good croissant decreases then the demand for bagel will fall since croissant is obviously cheaper therefore demand curve will shift downward and price and quantity will fall.

c. Lower income of the consumer would make the demand for the inferior good bagel to rise. Demand curve will shift upwards and price and quantity will rise.

7 0

3 years ago