Broad banding eliminates layers in pay grades requiring organizations to find other ways to reward employees. False
- A technique called "broad banding" replaces a large number of small wage ranges with a smaller number of larger compensation ranges when evaluating and building a job grading structure. Establishing what is necessary to pay for a certain position with help from broad banding.
- Payroll departments employ broadband for human resource management. When deciding how much to pay specific roles and the incumbents in those positions, a job grading structure known as "broadcasting" lies somewhere between using spot salaries and several job grades. Broad banding does provide some broad job classifications to the business that uses it, but it does not have as many discrete job grades as do traditional compensation systems.
Thus this is the answer.
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Answer:
The Beta is 1
The required return increases to 13%
Explanation:
The formula for required return is given below:
Required Return = Risk-Free Rate of Return + β(Market Return – Risk-Free Rate of Return)
required return is 11%
risk-free rate of return=7%
Beta is unknown
market return-risk free rate of return is market risk premium is 4%
11%=7%+beta(4%)
11%-7%=beta*4%
4%=beta*4%
beta=4%/4%
beta=1
If the market risk premium increased to 6%,required return is calculated thus:
required return=7%+1(6%)
required return =13%
This implies that the riskier the stock, the higher the market risk premium, the higher the required return to investors.
