Answer:
Risk-free rate (Rf) = 8%
Return on market portfolio (Rm) = 15%
Beta (β) = 1.2
Ke = Rf + β(Rm - Rf)
Ke = 8 + 1.2(15 - 8)
Ke = 8 + 1.2(7)
Ke = 8 + 8.4
Ke = 16.40%
Earnings per share (EPS) = $10
Current dividend paid (Do) = 40% x $10 = $4
Retention rate (b) = &6/$10 x 100 = 60% = 0.6
ROE (r) = 20% = 0.2
Growth rate (g) = b x r
= 0.6 x 0.2
= 0.12 = 12%
Current market price (Po)
= Do<u>(1 + g) </u>
Ke - g
= $4<u>(1 + 0.12)</u>
0.1640 - 0.12
= $4<u>(1.12)</u>
0.044
= $101.82
Explanation:
First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).
Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.
Answer:
B 30 percent
Explanation:
Initial cost of production = (2×$10) + (5×$4) + (8×$3) = $20+$20+$24 = $64
New cost of production = (2×$10) + (5×$8) + (8×$3) = $20+$40+$24 = $84
% rise in cost of production = (new cost - initial cost)/initial cost × 100 = (84 - 64)/64 ×100 = 20/64 × 100 = about 30%
Answer:
a
Life
Explanation:
Life insurance is a contract where the insurance company undertakes to pay the amount stated in the policy document upon the insured's death. The insured, in turn, pays periodic insurance premiums to keep the contract in force.
Life insurance renders financial protection to the family and the insured upon their death. For an entrepreneur, the insurance company will compensate their family for the loss of income occasioned by their death.
I really don’t know but mark me brainliest because I lost most of my points
Answer:
correct option is B: $29,000
Explanation:
given data
apartments = 15
family homes = 45
office buildings = 25
pay for cleaning staff = $12.50/hour
solution
we get here Total Budgeted hours that is
type Number Hrs/Clean No of Cleans Total Hours
Apartments 15 4 4 240
Homes 45 6 4 1080
Office 25 10 4 1000
Total Budgeted hours need per month 2320
Budgeted cost per month that is 12.50/hrs so it will 29000
so correct option is B: $29,000