<span>$104,500 * 0.04 = $4,180 - $665 = $3,515</span>
Is this an open ended question ? Or multiple choice ?
Answer: b
Explanation: i just did it on my test and got B
Answer:
50
Explanation:
Calculation to determine How many Number of Salespeople does Wally need to adequately sell waterslides
Using this formula
Number of Salespeople=(Number of customers*Calls necessary*Hours per call)/Average selling time available per year
Let plug in the formula
Number of Salespeople= (6000* 5 * 1.5 hours per call) / 900 hours
Number of Salespeople= 45,000 / 900
Number of Salespeople=50
Therefore Number of Salespeople that Wally need to adequately sell waterslides is ,50
The cost of equity is 10.6%.
<h3>What is the explanation?</h3>
The calculation of the question is shown as follows:
Cost of equity = Risk - free rate + (beta*market risk premium)
Cost of equity = 3.25% + (1.4* 5.25%)
Which is equal to 3.25% + (7.35%)
hence cost of equity is 10.6%.
<h3>
What are retained earnings?</h3>
Retained earnings refer to the total amount of earnings that a company generates from its operations. This subtracts the dividends shared among stockholders. The retained earnings are then reinvested in business.
To know more about retained earnings, visit:
brainly.com/question/13980094
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The complete question is:
Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: r_RF = 3.25%; R_PM = 5.25%; and b = 1.40.
Based on the CAPM approach, what is the cost of equity from retained earnings?