Answer:
(a) 8.90%
(b) $102.04
Explanation:
(a) Market capitalization rate i.e. expected return:
= Risk free rate + Beta (Market return - Risk free rate)
= 4% + 0.70 (11% - 4%)
= 8.90%
Therefore, the market capitalization rate is 8.90%.
(b) Intrinsic value of stock:
= Expected dividend ÷ (Required return - Growth rate)
= $5 ÷ (8.90% - 4%)
= $102.04
Therefore, the intrinsic value of the stock is $102.04.
Answer:
Increase; Increase
Explanation:
A government budget surplus from reduced government spending (no change in net taxes) will increase the level of investment in the economy and increase the level of total saving (private plus public) in the economy
Answer:
$86.87
Explanation:
Calculation for what would be the overall margin on the order
Price of cake $500.54
Less Costs:Size related ($183.06)
($1.13 per guest × 162 guests)
Less Complexity-related ($130.56)
($43.52 per tier × 3 tiers)
Less Order-related ($61.44)
($61.44 per order × 1 order)
Less Cost of purchased decorations for cake ($38.61)
Customer margin $86.87
Therefore would be the overall margin on the order is $86.87
Answer:
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Explanation: