Answer:
10.412%
Explanation:
The computation of the average cost of equity of the firm is shown below;
The Cost of equity as per CAPM is
= risk free rate + beta × (market rate - risk free rate)
= 4.2 + 1.34 × (12.8 - 4.2)
= 15.724%
Now the Cost of equity as per growth model is
= (D1 ÷ Current price) +Growth rate
= [0.45 ÷ 15] + 0.021
= 5.1%
Now the Average Cost of equity is
= (15.724 + 5.1) ÷ 2 2
= 10.412%
Answer:
Net income= $24,550
Explanation:
The contribution margin ratio is <u>the result of deducting from sales all the variable costs, </u>expressed as a<u> percentage.</u>
<u></u>
<u>First, we need to calculate the total contribution margin:</u>
Total contribution margin= sales*contribution margin ratio
Total contribution margin= 103,000*0.85
Total contribution margin= $87,550
<u>Now, the net income:</u>
Net income= 87,550 - 63,000
Net income= $24,550
If incomes increase during a period of expansion, goods considered to be inferior will experience:
<h3>What are inferior goods?</h3>
Inferior goods are those types of goods that consumers have little or no interest in. These goods are mostly sought after when the economy is tough and people have no option but to purchase them.
However, when the economy improves and there is an expansion, people will naturally return to the goods that they believe have superior quality. When they make this move, the inferior goods will experience a decrease in demand.
Learn more about inferior goods here:
brainly.com/question/20532958
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Answer:
175$-348.80$
Explanation:
sorry if you get the answer wrong .
