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Temka [501]
3 years ago
5

Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11 percent and the risk-free rate is 4 percent

, what is Hastings' required return
Business
1 answer:
maria [59]3 years ago
4 0

Answer:

The answer is 8.55 percent

Explanation:

This is Capital Assets Pricing Model(CAPM) shows the relationship between undiversified risk(systemai risk) and the expected rate of return for shareholders. It is used to determine the cost of equity. This model is widely used in finance.

The formula is: Risk free rate of return + beta(market return - risk free rate of return ).

Note that risk free rate of return - market return is known as risk premium i.e the compensation for taking risk.

Risk free rate of return - 4 percent

market return - 11 percent

Beta - 0.65

4 + 0.65(11 - 4)

4 + 0.65(7)

4 + 4.55

=8.55 percent

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Estee Lauder Co.now sells most of its flagship products directly online. This choice, made around 2000, resulted in substantial
mario62 [17]

Answer: Vertical Supply Channel Conflict

Estee Lauder Co.now sells most of its flagship products directly online. This choice, made around 2000, resulted in substantial __________ with the various high-end retailers.

Horizontal supply chain conflict.

Vertical supply chain conflict.

Vertical channel dissonance.

Contract re-negotiations.

Explanation:

Vertical Supply Channel Conflict occurs between members of different supply channel levels. For example, between a manufacturer and a wholesaler or between a wholesaler and a retailer.

This is the type of conflict that arose from Estee Lauder's decision to sell online directly to customers.

Horizontal Supply Channel Conflict occurs between members of the same channel level. An example is two retailers selling the same brand in the same shopping mall.

6 0
3 years ago
Billie Bradford worked for the Kentucky Department of Community Based Services (DCBS). One of Bradford’s co-workers, Lisa Stande
ololo11 [35]

Answer:

1. sexual

2. gender

3. quid pro quo

4. a) was not; b) did not

5. pattern

6. a) severe b) alter c) abusive

7. yes

8. yes

Explanation:

Stander´s conduct was sexually offensive because the coworker repeatedly complained about the situation. Also you can see a pattern because Stander´s behavior cannot be counted as a single event, but occured on various occasions.

3 0
3 years ago
You choose to complete your homework rather than watch television so that you can earn a good grade. You made the choice with th
Nonamiya [84]

Answer:

A. Opportunity cost

Explanation:

In Economics, Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

Hence, the opportunity cost of a choice is the benefits that could be derived in from another choice using the same amount of resources.

For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.

In this scenario, you choose to complete your homework rather than watch television so that you can earn a good grade. Therefore, you made the choice with the lowest opportunity cost.

5 0
3 years ago
Read 2 more answers
9. When paraphrasing, which of the following must a student do:
Scorpion4ik [409]

Answer:

5. They are all neccessary

6 0
3 years ago
Menthorp Inc. wants to design a variable-pay plan that fosters teamwork and business knowledge of its employees. In order to ens
Elena-2011 [213]

Answer:

cash profit sharing plan -

Explanation:

cash profit-sharing plan - it is one of the sharing plans in the profit-sharing plan. in this profit share directly to the employee through cash, stock, etc.

it is the sharing that is based on profit earned by the organization quarterly or annually. and its whole sole company how much they need to share among the employee.

4 0
3 years ago
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