Answer:
The answer is: Porter Plumbing's stock new rate of return is 14.38%
Explanation:
First we calculate beta:
beta = (stock's rate of return - risk free rate) / market rate of return
beta = 6.25% / 4.75% = 1.32
If beta remained the same (1.32% and the market rate of return increased by 2%, then to find the new value for Porter's stock (P):
1.32 = (P - risk free rate) / 6.75%
P - risk free rate = 1.32 x 6.75% = 8.88%
P = 8.88% + risk free rate
P = 8.88% + 5.50% = 14.38%
Answer:
2. an administered vertical marketing system.
Explanation:
- A vertical marketing system is a form of the cooperation between the multiple levels of the distribution channels and member works together to promote efficiency and the economies of scale.
- In this way the productions are promoted to the customers and credit can be given to them and the products are fully inspected and delivered.
- A dominant member of the channels of distribution the coca-cola company has independent stores and functions to provide the setting up displays and merchandise.
Given that a<span>
high school uses vlan15 for the laboratory network and vlan30 for the
faculty network.
What is required to enable communication between these
two vlans while using the router-on-a-stick approach is </span><span>a switch with a port that is configured as a trunk.</span>
Answer:
- $651,234.54
Explanation:
Data provided in the question:
Cost of remodeling = $3.4 million = $3,400,000
Rent paid each year = $820,000
Duration, n = 5 years
Discount rate, r = 15% = 0.15
Now,
Present value of the amount rent paid each year = A × ![\left[ \frac{1-(1+r)^{-n}}{r} \right]](https://tex.z-dn.net/?f=%5Cleft%5B%20%5Cfrac%7B1-%281%2Br%29%5E%7B-n%7D%7D%7Br%7D%20%5Cright%5D)
Here,
A = Rent paid each year
Thus,
Present value of the amount rent paid each year
= $820,000 × ![\left[ \frac{1-(1+0.15)^{-5}}{0.15} \right]](https://tex.z-dn.net/?f=%5Cleft%5B%20%5Cfrac%7B1-%281%2B0.15%29%5E%7B-5%7D%7D%7B0.15%7D%20%5Cright%5D)
= $820,000 × 3.352153
= $2,748,765.46
Therefore,
Benefit = Present value of the amount rent paid - Cost of remodeling
= $2,748,765.46 - $3,400,000
= - $651,234.54
