Answer:
14.10%
Explanation:
The calculation of expected return on this stock is shown below:-
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.5% + 1.28 × (12% - 4.5%)
= 4.5% + 1.28 × 7.5%
= 4.5% + 9.6%
= 14.10%
The Market rate of return - Risk-free rate of return) is also called as the market risk premium
hence, the expected rate of return is 14.10%
Answer:
D. the price level is likely to rise as GDP rises.
Explanation:
The aggregate demand measures all the goods produced in an economy at a given price in a particular period.
When the aggregate demand increases, the aggregate demand curve shifts to the right. When aggregate demand increases, aggregate demand exceeds aggregate supply and aggregate price and output would increase.
Answer:
D. Both (B) and (C) are true
Explanation:
Cash payback approach is helpful to know the number of years, project would take to recover the initial investment. It could be calculated by dividing initial investment by cash flow per year. It is very simple and easy approach to compare projects and find number of years to recover the initial investment. The most serious weekness of cash payback approach is, it ignore the time value for the money, it also ignore project profitablity and project`s return on investment. As according to cash payback approach, it consider projects with short payback time as profitable and thus ignore useful life of alternative projects.
<em>A) Franchise is a business model Samantha have in mind.</em>
Answer: <em>A) Franchise </em>
Explanation:
Franchise is the business model which is adopted by many business organisation for the purpose of business expansion. Where the other new business holders carry out the business using the company's procedure, brand name etc.
Under the same name and business line, the business is carried out by the new reciters and a amount of their profit is earned by the owner of the business. Here in this case Samantha is using Franchise business model.
