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Anarel [89]
4 years ago
10

Musical Charts just paid an annual dividend of $1.84 per share. This dividend is expected to increase by 2.1 percent annually. C

urrently, the firm has a beta of 1.12 and a stock price of $31 a share. The risk-free rate is 4.3 percent and the market rate of return is 13.2 percent. What is the cost of equity capital for this firm?
Business
1 answer:
Ksenya-84 [330]4 years ago
5 0

Answer:

Ke = Rf + β(Rm - Rf)

Ke = 4.3 + 1.12(13.2 - 4.3)

Ke = 4.3 + 1.12(8.9)

Ke = 4.3  + 9.968

Ke = 14.268%

Explanation:

In this question, there is need to calculate cost of equity based on capital asset pricing model. Cost of equity is a function of risk-free rate plus beta multiplied by the difference between market return and risk free rate.

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Veseljchak [2.6K]

Answer: governmental, institutional, and reseller purposes.

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6 0
3 years ago
Warby Parker, an online retailer for prescription eyewear, offers a free, try-on at home program for its customers. Customers br
VikaD [51]

Answer:

e. trialability

Explanation:

Trialability is the ability to give an idea, process, product, or system a trial before making a final decision.

It indicates the degree to which a product or innovation can be experimented by the customer before they finally buy.

Warby Parker has leveraged on this strategy by allowing customers browse frames on Warby Parker’s website and select five pairs they would like to try on before buying—or not. Warby Parker handles all the shipping costs and provides all the return packaging

7 0
3 years ago
Transformational leadership: ____________
schepotkina [342]

Leadership is a way of leading others towards a certain goal. The one in charge of the leading or steering the mantle of leadership is known as a leader.

<h3>Characteristics of Transformational leadership</h3>

Transformational leadership helps followers to transcend their own self-interests for the good of the group.

There are types of leaders in every context. There are good and bad leaders. A transfirmational leader helps followers to achieve their personal interests.

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6 0
2 years ago
The ______ is a roadmap that displays how all the specific activities fit together to accomplish the project work scope.
LUCKY_DIMON [66]

Based on project management, the <u>Network Diagram</u> is a roadmap that displays how all the specific activities fit together to accomplish the project work scope.

<h3>Network Diagram in Project Management</h3>

Generally, Network Diagram is a tool used by project managers to visualize the whole concept before the work is carried out. It is also used throughout the project to determine how the work is to be done, including the duration and methods, sequence, and dependency.

<h3>Benefits of a Project network diagram</h3>
  • Visual representation of work or project in progress.
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Hence, in this case, it is concluded that the correct answer is Network Diagram.

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4 0
3 years ago
Ginger is a retired school teacher that who makes baked goods in her spare time. She occasionally delivers a batch of her cookie
AnnyKZ [126]

Answer:

d. Ginger cannot be sued under the theory of product liability.

Explanation:

Ginger sells goods to restaurant, and not to direct customers.

Customers can sue the restaurant owner for selling such baked products to them, and not to the direct manufacturer of such products.

Therefore, Ginger cannot be sued.

Although for any loss, the restaurant owner can sue Ginger, but not the direct customers under any scheme of Product liability. As the liability is of restaurant towards people consuming such baked products.

3 0
3 years ago
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