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skad [1K]
3 years ago
15

Cooley Company's stock has a beta of 1.40, the risk-free rate is 25%, and the market risk premium is 5.50%. What is the firm's r

equired rate of return
Business
1 answer:
ladessa [460]3 years ago
7 0

Answer: 12.2%

Explanation:

Given the variables available, the required rate of return can be computed using the Capital Asset Pricing Model with the formula;

Required Return = Risk-free rate + beta ( Market risk premium)

Required return = 4.25% + 1.4 * 5.5%

Required return = 4.25% + 7.7%

Required return = 12.2%

<em>Note; The actual question says the Risk-free rate is 4.25%. </em>

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Explain the concept of delegation of authority​
Archy [21]

Explanation:

Delegation of authority is a process that enables a person to assign a task to others. As a manager or leader, you're expected to perform several tasks and meet multiple deadlines. To ensure that you achieve your objectives on time, you delegate responsibility to your team members

6 0
3 years ago
Read 2 more answers
Jose Garcia agrees to contribute land with a fair market value of $10,000 in exchange for 200 shares of Damian Inc.'s common sto
zavuch27 [327]

Answer:

Dr Land account 10,000

Cr Common Stock account 2,000

Cr Capital Paid in Excess of Par Value account 8,000

Whenever a company sells stock it must record the transaction under common stock account at par value (= 200 shares x $10 = $2,000). Any extra money received must be recorded as capital paid in excess of par value (= $10,000 - $2,000). The basis for the land that Jose Garcia contributes must be its fair market value ($10,000).

4 0
4 years ago
To pay for college, Henry received the following: $1,000 scholarship from the Thespian Club to pay for books $4,000 scholarship
Alika [10]

Answer:

$5,000

Explanation:

Money received as scholarship and used to pay for tuition or related expenses is not included in the gross income. So the $1,000 scholarship from the Thespian Club and the $4,000 scholarship from the Elks Lodge are not taxable. The only taxable income that Henry earned is the $5,000 that he was paid for being a dorm supervisor.

6 0
3 years ago
The analysis tool that lists products in descending order of their individual dollar contribution to the firm is:A) decision tre
Katena32 [7]

Answer:

The correct answer is letter "D": product-by-value analysis.

Explanation:

The product-by-value analysis is a study that aims to increase the value of a product by understanding the costs of its components. The analysis implies listing the products a firm manufactures in descending order portraying those with more value first. In the study, costs are analyzed to find out if they can be reduced.

8 0
3 years ago
PLZ HELP. Classify the customer buying motive as rational or emotional.
Lina20 [59]

Answer:

rational

Explanation:

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Buying motive refers to the considerations, urge, emotions or influences that creates the impulse in consumers (customers) to buy a particular good, so as to satisfy their desire or needs.

This ultimately implies that, behind every purchase made by a consumer, there's a consideration, urge or feeling to satisfy that desire or needs l, this is generally referred to as buying motive.

In Economics, buying motives are classified into five (5) main categories and these include;

I. Acquired and Inherent buying motives.

II. Conscious and Dormant buying motives.

III. Physical, Psychological and Sociological buying motives.

IV. Primary and Selective buying motives.

V. Rational and Emotional buying motives.

A rational buying motive is typically based on the consumer's logical and economical consideration of a product in terms of price, durability, need, quality, etc. Thus, it involves a careful consideration of a product rather than feelings as in emotional buying motive.

In this scenario, Mark buys a particular brand of frozen food because it is economical for him. Thus, the buying motive would be classified as rational.

6 0
3 years ago
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