Explanation:
d indirect materials used in production hope it's right
Answer:
The correct answer is B
Explanation:
As the share of IBM is bought by an individual investor at $75, later the investor sold it to another investor for $125. So, the first investor earns the profit of $50 from selling the share of IBM. Therefore, the first investor is the one who is getting profits or benefits from this sale of the share.
Working Note:
Profit = Selling Price - Purchase Price
= $125 - $75
= $50
Answer:
Price elasticity of demand is a measure of the change in the quantity purchased of a product in relation to a change in its price.
Explanation:
Answer:
The risk free rate is 3.325%
Explanation:
The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
- (rM - rRF) gives us the risk premium of market
We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,
Let rRF be x.
0.1185 = x + 1.24 * (0.102 - x)
0.1185 = x + 0.12648 - 1.24x
1.24x - x = 0.12648 - 0.1185
0.24x = 0.00798
x = 0.00798/0.24
x = 0.03325 or 3.325%