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astraxan [27]
2 years ago
13

You originally required a risk premium of 6 percent in addition to the rate of return on safe assets before you would purchase s

hares of Techno Company stock. If you and other investors reduce the risk premium you require to 4 percent, the price of Techno Company stock will:
Business
2 answers:
konstantin123 [22]2 years ago
8 0

Answer:

increase

Explanation:

One of the most common ways to determine the price of stocks is by using the Gordon growth model:

  • stock price = dividends / (required rate of return - growth rate)

the require rate of return = risk free rate + risk premium

if the risk premium decreases, then the required rate of return will also decrease. If the RRR decreases, then the denominator in the equation will decrease, and when that happens the value of stocks increases.

shusha [124]2 years ago
4 0

Answer:

The price of Techno Company stock will Increase

Explanation:

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Alina [70]

Answer:

Hope you have a good day also!!!

Explanation:

5 0
2 years ago
Read 2 more answers
Instant rewards reinforce desired behavior. Annual raises are ________ effective in reinforcing behavior because there is too mu
amid [387]

Answer:

B. less

Explanation:

As compared with the instant rewards the annual raises are becomes less effective when the behavior is reinforced also it is depend upon the time gap that lies between the behavior and the actual reward

Therefore as per the given situation, the option b is correct

hence, all other options are wrong

So, the same is to be considered

4 0
2 years ago
Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 that carry a one-year warranty against manufacture
blagie [28]

Answer:Woodmier journal $

1. Date

2021

Warranty expenses Dr 90,000

Warranty liability Cr. 90,000

Narration. Amount of warranty incurred for the year.

2021

Warranty liability Dr 90,000

Bank/Cash. Cr. 90,000

Narration. Payment of warranty expenditures.

2. No entry require

Explanation:

The warranty expenses since is a period of one year can be accounted for at the end of the year without requirements for provision at the beginning of the year. The actual warranty is debited to the income statement and the liability recognized as a creditor until payment.

The discontinuation of the sales of the product in 2021 will not affect the already incurred warranty liability and the account posting thereon in the following years.

8 0
3 years ago
Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor
WARRIOR [948]

Answer:

$93,750

Explanation:

Required: "<em>Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours."</em>

<em />

Total estimated overhead costs (A) = 150,000

Total labor hours (B) = 15,000 + 9,000 = 24,000

Overhead allocation rate (C) = A/B = 150,000/24,000

Overhead allocation rate (C) = $6.25 Per labor hour

Total labor hours used by Fabric case (D) = 15,000 Hours

Overhead assigned to the fabric case (C*D) = $6.25 Per labor hour * 15,000 Hours = $93,750

5 0
3 years ago
If the inflation rate unexpectedly rises:_______.a. borrowers gain at the expense of lenders.b. lenders will gain at the expense
Alborosie

Answer:

a. borrowers gain at the expense of lenders

Explanation:

Inflation refers to the sustained increase of the price of a commodity over a period of time.

It can be caused due to increase in production cost or increased demand of a good or service.

The losers during inflation are the creditors because the money loaned out had more value or purchasing power compared to what is repaid. This is due to the fact the borrower will still owe the lender the same amount .

7 0
3 years ago
Read 2 more answers
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