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77julia77 [94]
3 years ago
14

The stock in Bowie Enterprises has a beta of .87. The expected return on the market is 11.70 percent and the risk-free rate is 2

.89 percent. What is the required return on the company's stock
Business
1 answer:
Tems11 [23]3 years ago
4 0

Answer:

10.55%

Explanation:

The stock in Bowie's enterprise has a beta of 0.87

The expected return on the market is 11.70%

The risk free rate is 2.89%

Therefore, the required return on the company stock can be calculated as follows

= 2.89%+0.87(11.70%-2.89%)

= 2.89%+10.179%-2.5143%

= 2.89%+7.6647%

= 10.55%

Hence the required return on the company's stock is 10.55%

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A mid-sized firm plans to issue 10 million shares during an IPO. The underwriter plans to sell shares at $22.55; however, many i
lapo4ka [179]

Answer: $223,500,000

Explanation:

An Initial Public Offering is the first issuance of a Company's stock to the world. It is usually done through an Investment bank that underwrites the issuing and sells it at a price that they feel is right based on their Research.

In this scenario, the Underwriter thinks the amount that the stock should be offered at is $22.55 and so that is the price it will be offered at.

10,000,000 shares are to be offered.

$2,000,000 is to be taken as fees by the Underwriter.

The total money the company will make will therefore be,

= ( No. Of shares offered * Share Price) - Underwriting Fee

= (10,000,000 * 22.55) - 2,000,000

= 225,500,000 - 2,000,000

= $223,500,000

8 0
3 years ago
In a tiny village, on the coast of South America, early inhabitants used sea shells, as money. Some of these shells were very be
ycow [4]

Answer:

store of value

Explanation:

Based on this information it can be said that seashells would be unfit to act as money because they could not act as a store of value. Money needs to be easily divisible and storable in order for it to be used as a medium of exchange. This also allows money to easily measure the value of a certain good or service. Therefore, since seashells cannot be stored since they are very fragile and cannot be divided then they would not be fit as money.

7 0
3 years ago
Beranek Corp has $720,000 of assets, and it uses no debt--it is financed only with common equity. The new CFO wants to employ en
sergeinik [125]

Answer:

$288,000

Explanation:

Debt to asset ratio measure the percentage of asset financed by the debt portion. It is also express the percentage of debt in the total capital of the firm.

Total Assets = $720,000

Debt asset ratio = 40%

Debt to Asset ratio = Debt /  Asset

40% = Debt / $720,000

Debt  = $720,000 x 40%

Debt  = $288,000

6 0
3 years ago
In february, when paula, the manager of a landscaping company, is modifying worker schedules to handle the expected increase in
Darya [45]
I think she is involved with: Managing

Any form of action that is being done to control a group of employees to achieve organizational goals could be considered as Managerial Actions.
When modifying worker's schedule, Paula basically created an effort to make sure the company achieves the required deadline.
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3 years ago
One of the advantages associated with television as an advertising medium is that it:
Anastaziya [24]
It has a bigger audience and reaches put to people of all ages
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2 years ago
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