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ololo11 [35]
3 years ago
14

Haulsee Inc. pays no dividend currently but is expected to start paying a small dividend next year. The 5-year-old firm has a be

ta of 1.25 and current earnings of $0.90 per share. The current Treasury bill rate is 6.10%, and the market risk premium is 8.8%. Determine Haulsee's cost of equity if the firm's tax rate is 40%.
Business
1 answer:
wlad13 [49]3 years ago
8 0

Answer:

17.10%

Explanation:

The computation of the cost of equity is shown below:

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)

= 6.10% + 1.25 × 8.8%

= 6.10% + 11%

= 17.10%

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

All other information which is given is not relevant. Hence, ignored it

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In this career, you consult with various companies about the well-being of their employees, emissions standards, and waste dispo
aksik [14]

Answer:

A. waste management

Explanation:

option A is the correct answer

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5 0
2 years ago
Read 2 more answers
If muffins and bagels are substitutes, a higher price for bagels would result in:
Alexandra [31]
Answer: a) increase in the demand for bagels

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

a) increase in the demand for bagels
b) increase in the demand for muffins
c) decrease in the demand for muffins
d) none of the above
b) increase in the demand for muffins
7 0
3 years ago
Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franc
IrinaK [193]

Answer:

a.       I Disagree with Faith's method of handling this situation because she has not followed the internal control principle of safeguarding of assets. Stealing is a serious issue. An employee who can justify taking a box of tea bags can probably justify “borrowing” cash from the cash register.

b.      I Agree with Faith's method of handling this situation because Faith has followed the internal control principle of assignment of responsibility by making one employee responsible for the cash drawer and followed the internal control principle of segregation of duties (preparing the orders) from the accounting (taking orders and payments).

c.       I disagree with Faith's method of handling this situation because Faith has not followed the internal control principle of segregation of duties. It is true that faith has made one employee responsible however after cash counting another employee or Faith himself remove the cash register tape and compare the balance with cash drawer for effective internal control. Also, Faith’s standard of no mistakes may encourage the cashiers to overcharge a few customers in order to cover any possible shortages in the cash drawer.

6 0
3 years ago
A home store chain is prepared to buy 3,800 of your Frog & Friends(TM) shower curtains per month for $5 each, but only 3,500
neonofarm [45]

Answer:

The linear demand function for Frog & Friends Shower curtains is q = -60p + 4,100

Explanation: $5 each ===> 3,800 curtains per month

$10 each ===> 3,500 curtains per month.

===> slope of the demand line is (3800-3500)/(5-10) = 300/-5 = -60

===> demand function is q = -60p + c for some constant c.

Let 3,800 = -60*5 + c.

=3800 = -300 + c

===> c = 4,100.

Therefore the linear demand function for frog & friends curtains is q = -60p + 4,100

5 0
3 years ago
Joe and Mike have been friends since college and both work in the financial industry. The two work for two un-affiliated broker/
castortr0y [4]

Answer:

A) Because Joe and Mike work for un-affiliated broker/dealers, they are not permitted to share or split commissions, making this arrangement un-acceptable.

Explanation:

Even though Joe and Mike are friends and know each other for a long time, in the real world where money has an almost divine status, they must follow the rules. Commissions can only be split between agents that work for the same broker-dealer firm and are registered to work in the same state.

Since Joe and Mike work for unaffiliated broker-dealers, they cannot share clients or split commissions. Following the rules will not only help them professionally, but probably will help their friendship.

5 0
3 years ago
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