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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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The Assembly Department started the month with 25,100 units in its beginning work in process inventory. An additional 310,100 un
Murljashka [212]

Answer:

315,000 Transferred-out

Explanation:

25,100 beginning WIP

+310,100 transferred in

-30,100 ending WIP

315,000 Transferred-out

The tranferred-in are units that comes into this process from a previous process.

Transferrred-out are the units that leave the process to another process or to finished goods inventory.

8 0
3 years ago
The Chambers Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at
notsponge [240]

Answer:

B) $2,86

Explanation:

Using the high-low method we will use the highest activity level and the lowest activity level to determine the variable and fixed portion of the costs.

Highest activity - Cost $ 14182  Hours - 4200

Lowest activity - Cost $ (8748)   Hours - (2300)

Difference        -            $ 5434                 1900

Now we determine the variable portion. 5434/1900 = 2,86

Thus the answer is B.

6 0
3 years ago
According to pmi’s agile’s practice guide, which roles are considered appropriate agile roles?
Mamont248 [21]

Traditional predictive project management and the PMI's Project Management Body of Knowledge remain inextricably linked, notwithstanding changes made in the Sixth Edition (PMBoK).

Concerns for Agile/Adaptive Environments are covered in each of its 10 Knowledge Areas. But generally, they are only two or three paragraphs long. The primary goal is raising awareness.

The organization's own Agile Project Management qualification is designated as a PMI Agile Certified Practitioner (PMI-ACP). The PMI-ACP is also the certification with the fastest growth.

Instead of calling Scrum a methodology, Schwaber refers to it as a framework. This is mainly because many people associate the word "methodology" with being prescriptive in character.

To learn more about PMI's here

brainly.com/question/17460312

#SPJ4

6 0
2 years ago
The Weston Corporation is analyzing projects A, B, and C as possible investment opportunities. Each of these projects has a usef
melamori03 [73]

Answer:

D

Explanation:

8 0
3 years ago
Hsu Company reported the following on its income statement: Income before income taxes $302,634 Income tax expense 90,790 Net in
7nadin3 [17]

Answer:

5.79  times

Explanation:

The times interest earned ratio tells us the number of times the company's made earnings in multiple of its debt interest obligation.

The formula for times earned interest ratio is the income before interest and taxes divided by the interest expense.

income before tax is $302,634

income before interest and taxes= $302,634+$63,228=$365,862.00  

times interest earned ratio=$365,862.00/ $63,228= 5.79  times

8 0
3 years ago
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