Answer:
19.50%
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)
For Stock R
= 3% + 2.5 × (13% - 3%)
= 3% + 2.5 × 10%
= 3% + 25%
= 28.00%
For Stock S
= 3% + 0.55 × (13% - 3%)
= 3% + 0.55 × 10%
= 3% + 5.5%
= 8.50%
The difference would be
= 28% - 8.5%
= 19.50%
Answer:
Cash Flow Probability Expected value
$3,840 0.4 $1,536
$5,280 0.2 $1,056
$8,110 0.3 $2,433
<u>$10,370 0.1 $1,307</u>
total 1 $6,332
a) the expected value of each yearly cash flow is $6,332
b) the present value of the expected cash flows = $6,332 x 3.5172 (PV annuity factor, 13%, 5 periods) = $22,270.91 ≈ $22,271
the NPV = -$24,500 + $22,271 = -$2,229
c) Debby should not buy the equipment since the project's NPV is negative.
Answer:
An apple, potato, and onion all taste the same if you eat them with your nose plugged≡⇵∠⊅↓⇆°∞∴∴∵∵∵∴∴∵∵∴∴∵∴
∴∴≈↓∴↔∪∪∩⇄
Explanation:
Answer:
$600,000
Explanation:
Calculation for how much goes to the preferred stockholders
Using this formula
Preferred stockholders=Number of preferred shares outstanding * Preferred stock par value * Percentage of Annual dividend
Let plug in the formula
Preferred stockholders=50,000 x $100 x 0.12
Preferred stockholders= $600,000
Therefore If dividend is paid the amount of $600,000 goes to the preferred stockholders
Answer:No, because even though the company will be able to save on payroll the costs of travel will be increased
Explanation:
Centralizing the support functions of a business such as Human Resources, fiscal and purchasing units can reduce costs, create consistency and reduce duplication of duties.
However, in this case where the business needs to deploy staff of these units to each plant occasionally, the travel expenses and negative effect on the staff will outweigh the money saved.
