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marshall27 [118]
3 years ago
13

Regina is looking to start a knitting business and completes a target market profile to include in her business plan. Identify w

hich item in her target market profile is in the wrong category and where it should be moved.
Business
1 answer:
mojhsa [17]3 years ago
6 0
In order to get the item and recategorizing it Regina needs to have in mind the Demographics it means facts about the economic status of the people, Geographics which means where customers live, Psychographics which means to determine the people's attitudes and beliefs and the Buying Patterns which means how they use their money. With that in mind you can see which item is not related<span>
</span>
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Answer:

Explanation:

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Option b. 7.78% is the correct answer. The cost of equity from retained earnings is 7.78% as per the CAPM approach

The relationship between systematic risk, or the general dangers of investing, and expected return for assets, particularly stocks, is described by the Capital Asset Pricing Model (CAPM).

A linear relationship between the required return on investment and risk is established by this financial model.

Retained earnings refer to the total earnings that a company has generated from its operations minus the dividends distributed among shareholders. The retained earnings are earnings reinvested in the business.

The calculation is shown below.

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Cost of equity = 4.10% + (0.70 * 5.25%)

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