Based on the U.S. Treasury bond rate, the market return and the beta, Davcher's expected rate of return would be 6.5%.
<h3>What is the expected rate of return?</h3>
Using the Capital Asset Pricing Model (CAPM), the expected rate of return would be:
= Risk free rate + Beta x Market premium
Market premium:
= Market return - risk free rate
= 8% - 3% rate of treasury bonds
= 5%
Expected rate of return is:
= 3% + 0.70 x 5%
= 6.5%
Find out more on the Capital Asset Pricing Model at brainly.com/question/15851284.
Answer:
0.90
Explanation:
The debt to equity ratio is a type of leverage ratio. It is also known as a risk ratio. It is calculated using the formula below.
Debt to Equity Ratio=Total Shareholders Equity/ Total Liabilities.
Shareholders' equity is comprised of retained earnings, share capital, income, and dividends.
Total liabilities are the current liabilities plus long term liabilities.
For Creatz Ltd, Total liabilities are $3500 + $7500= $11,000
Shareholders is $10,000
debt to equity ration
= $10,000/$11,000
=0.90
I agree with the person above - being debt free within the next 15 years in an example of a long-term goal.
A short-term goal would involve hours, days, or even months. But here, we're talking about years, at least 15 of them, which is a long time during which many things can change. So it is definitely a long-term goal, given that it won't expire any time soon.
Answer:
-0.33
Explanation:
The calculation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 80 units - 100 units
= -20 units
And, the average of quantity demanded would be
= (80 units + 100 units) ÷ 2
= 90 units
Change in price is
= P2 - P1
= $2 - $1
= 1
And, the average of the price is
= ($2 + $1) ÷ 2
= 1.5
So, after solving this, the price elasticity of demand is -0.33
The effect of the declaration of a cash dividend on a company's financial statements is to decrease both stockholders' equity and total assets.
<h3>What are cash dividends?</h3>
Dividends are cash payments made to the stockholders of a public company. Stockholders are individuals who purchase shares in a public company.
Dividends are paid with cash, thus, the assets of a company would decline. Since assets is positively related to stockholders equity, stock holder's equity would also decline.
To learn more about dividends, please check: brainly.com/question/13672624
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