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Angelina_Jolie [31]
3 years ago
5

The Graber Corporation’s common stock has a beta of 1.8. If the risk-free rate is 5.8 percent and the expected return on the mar

ket is 12 percent, what is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Murljashka [212]3 years ago
3 0

Answer:

16.96%

Explanation:

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)

= 5.8% + 1.8 × (12% - 5.8%)

= 5.8% + 1.8 × 6.2%

= 5.8% + 11.16%

= 16.96%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

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Categories of expenditures Gilberto and Juanita Jones live in Swarthmore, PA. Juanita's father, Lorenzo, lives in Sweden. For ea
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Answer:

a. Imports

b.Exports or Consumption

c. Consumption

d. Government Spending

e. Consumption.

Explanation:

a. if Gilberto buys Italian wine in the US that is part of consumption spending because the store that Gilberto buys from already imported the wine from Italy and paid all the costs that go with it but if Gilberto orders the wine from Italy that will be part of imports because the wine will have to be imported then have all those importing costs on it.

b. Juanitas father will be exporting the syrup if its from the US even though he might buy it online as he lives in Sweden .

c. Juanita will be part of consumption spending for goods and services as this will be part of the US GDP consumption spending.

d. This is part of government purchases as the government will spend on everything that includes repaving the high way.

e. Consumption spending because they are manufactured in the US and they are in the US therefore its part of the US purchases of goods and services.

8 0
3 years ago
If the labor supply curve is very elastic, a tax on laborA. raises enough tax revenue to offset the loss in welfare.B. has a lar
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Answer: .B. has a large dead weight loss

Explanation:

 The labor market basically has two forces pulling against each other, we have firms who demand labor and we have workers who are Suppliers of labor. Firms will want to hire more labor at a lower wage price while more workers will want to work when the wage price is higher as the law of supply stipulates  

The law of supply states that more is supplied at a higher price, now using the same law on the supply of labor we conclude that more labor will be supplied at a higher Wage which represents Price. A Labor Market is equilibrium when Quantity Demanded Equals Quantity Supplied. Elasticity measures the sensitivity of Demand or Supply to Price Changes. The amount of Change in the Quantity supplied or demanded depends on how elastic the demand or supply is to wage Price changes

When Supply Curve is highly elastic means a small change in wage price will have a huge impact on the Total amount Labor supplied. When government imposes Tax on labor, The Wage price will decrease and workers will now earn a wage net of tax,

The Supply curve is highly elastic meaning a small decrease in wages caused by a tax imposed on labor  will only lead to a huge decrease in the quantity of labor supplied because more people will choose not work. The tax imposed on labor creates a huge dead weight loss in the labor market because the market is no longer in equilibrium. The Quantity of labor supplied is far less than the quantity of labor demanded.

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3 years ago
Henry is the manager at a store that sells clothes for all seasons. The latest trend, he found, was in summer beachwear. So, he
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3 years ago
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11. Effective communication with patients and co-workers is an important skill for practice managers. Describe what you will do
kolbaska11 [484]

Answer:

The dos and donts in excersing active listening

Explanation:

Active listening helps someone understand what the party is trying to say, even if the message is unclear or ambiguous.  As a practice manager, the following actions will enhance or undermine active listening.

<u>The Do's</u>

  1. Nod in agreement
  2. Maintain eye contact
  3. Offer positive reinforcement with phrases such as 'yes,' ' great' or 'indeed.'
  4. Positive body posture such as facing the speaker and smiling
  5. Ask relevant questions
  6. Seek clarification

<u>The Don't s</u>

  1. Avoid noise: switch off audio devices such as radio, computers while listening.
  2. Do not interrupt or cut off the speaker.
  3. Avoid receiver biases. Keep an open mind, and don't judge the speaker's message before its communicated.
  4. Avoid listener's appreciation: Don't fear that you might not understand the speaker's message.
  5. Keep off distractions such as picking phone calls and reading.

3 0
3 years ago
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