1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Luden [163]
3 years ago
10

Barker Corp. has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the marke

t risk premium is 4.70%.
What is Barker's required rate of return?
Business
1 answer:
Stells [14]3 years ago
8 0

Answer:

the required rate of return for Barker's investor is 10.17%

Explanation:

<u><em>First, We have to calcualte the CAPM </em></u>

(Capital Assets Pricing Model)

Ke= r_f + \beta (r_m-r_f)

risk free = 0.02

premium market = (market rate - risk free) 0.047

beta(non diversifiable risk) = 1.1

Ke= 0.02 + 1.1 (0.047)

Ke 0.07170

now we add the inflation premium:

0.0717 + 0.03 = 0.1017 = <em>10.17%</em>

You might be interested in
An unmarried person, a divorced person, or a person legally separated from his or her spouse must choose which filing status whe
Nadusha1986 [10]
<span>B.Married filing separately</span>
3 0
3 years ago
Read 2 more answers
: i can't believe it! now our pay depends on meeting goals! doesn't effort count for anything anymore? i have the same goals tha
viva [34]

Setting the pay according to the goals achieved by a group may not be considered beneficial to everyone, thus decreasing motivation. Pay-for-performance or according to individual performance may help motivate the employee but increasing individuality in terms of performance may also decrease group cohesiveness or group-related values. The speaker here shows depreciation by undervaluing another's work to overvalue or protect one's own.

6 0
3 years ago
Select the best answer for the question.
Lorico [155]

Answer:

QC

Explanation:

US dollar used to be backed by gold but this is not the case anymore. US dollar being as a flat currency is backed by governemnt through federal reserve.

6 0
3 years ago
A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum fail
Nesterboy [21]

Answer:

test marketing

Explanation:

Test marketing is an experimental test of a product in a real life market. Buyers are studied in live shops or market without them knowing. It is conducted on a small scale to see the effectiveness of a marketing strategy.

When the products do not perform well at the test marketing phase it is assumed it will not also perform well in the real market, so they are termed failed products.

The marketing manager in Ithaca maintains a museum of failed consumer products from the test marketing stage.

4 0
3 years ago
What is an example of a flame?
nasty-shy [4]

Answer:

Fire

Explanation:

Class A fires are defined as ordinary combustibles. These types are fires use commonly flammable material as their fuel source. Wood, fabric, paper, trash ,and plastics are common sources of Class A fires. ... Trash fires are one such example.

4 0
3 years ago
Read 2 more answers
Other questions:
  • after all of your expenses are subtracted from your income, the money left over is known as your savings.
    14·1 answer
  • A hurricane has disrupted operations at one of your company's facilities and shut down operations completely for several of your
    10·1 answer
  • When did federal deficits become a regular feature of the federal budget?
    6·1 answer
  • A corporation purchased manufacturing equipment for $100,000, with an estimated useful life of 10 years and a salvage value of $
    14·1 answer
  • Which statement best explains why this passage is an effective use of rhetoric?
    10·2 answers
  • Jetson Spacecraft Corp. shows the following information on its 2015 income statement: sales = $316,547; costs = $219,406; other
    6·1 answer
  • At what phase should security planning begin in a conceptual and proposed "from the start" international acquisition program?
    7·1 answer
  • The National Chair Company manufacturers wooden chairs and sells them via their website. Their chairs are manufactured in a make
    5·1 answer
  • What type of economy is the South African economy?<br>​
    9·2 answers
  • Select the appropriate response
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!