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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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Suppose charles owns a​ lawn-mowing company. assume that without​ workers, no yards are mowed. when he hires one​ worker, he is
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Total fixed costs are $60,000. Marketing data indicate that the company can sell up to 8000 units of the Bedford Lamp and up to
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As firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system
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Answer:

The correct answer is boundaries and constraints.

Explanation:

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The management model in conventional companies is directed at cost control. The Theory of Constraints teaches us that we must change the approach, we should not direct our efforts in cost control, but rather in generating money. To generate money you have to work with the client and depending on the client, but for that to happen we must prepare the company to be able to respond to that client, for this reason we must prepare operational models that are agile, flexible, capable of responding to constant and changing requirements.

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3 years ago
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Answer:

Total= $13,221.52

Explanation:

Giving the following information:

Deposited $3,200 in an account two years ago and is depositing another $5,000 today.

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We need to calculate the final value of each deposit using the following formula:

FV= PV*(1+i)^n

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Total= $13,221.52

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