Answer:
15.55%
Explanation:
Calculation for the required rate of return for Mudd Enterprises
Using this formula
Required rate of return=Risk free rate+(Market risk premium +Stock beta)
Let plug in the formula
Required rate of return=(3.7%+1.5%)+4.5%(2.3)
Required rate of return=5.2%+0.1035
Required rate of return=0.1555*100
Required rate of return=15.55%
Therefore the Required rate of return is 15.55%
Answer:
The definition would be defined in the clarification portion below, according to the particular context.
Explanation:
- Even before managers accomplish diversification besides trying to create a conglomerate whilst also buying other corporations, it is almost always accomplished at a premium surrounded by white market rates because once shareholders could effectively achieve consolidation according to their own besides investing money throughout multiple organizations.
- Although it may be more difficult to accurately determine productivity in a conglomerate, authority costs will be lower as well as assets might well be apportioned around through segments incompetently.
<span>Three reasons a price-based system works more efficiently than central planning are flexibility, a larger selection of goods, and resources are used entirely.
</span><span>Price based systems are more efficient because the demand from a product determines its price. Only enough product is produces that the market demands. Excess surpluses are not generated in a price based system.</span>