1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mumz [18]
4 years ago
13

Nagel Equipment has a beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-b

ond rate is 5.25%. The annual return on the stock market during the past 4 years was 10.25%. Investors expect the average annual future return on the market to be 12.50%. Using the SML, what is the firm's required rate of return?13.83% 13.55% 11.62% 11.76% 14.94%
Business
1 answer:
Natalka [10]4 years ago
7 0

Answer:

11.62%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return of treasury bond + Beta × (Market rate of return - Risk-free rate of return)

= 5.25% + 0.88 × (12.50% - 5.25%)

= 5.25% + 0.88 × 7.25%

= 5.25% + 6.38%

= 11.63% approx

All other information which is given is not relevant. Hence, ignored it

You might be interested in
PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST)
Pani-rosa [81]

Answer:

stock-held savings institution

Explanation:

6 0
3 years ago
ABC Company listed the following data for the current year:
RideAnS [48]

Answer:

$10,800 underapplied

Explanation:

Calculation for If overhead is applied based on machine hours, the overapplied/underapplied overhead is:

Overhead machine hours=[($1,044,000/24,000)×23,600]-1,037,400

Overhead machine hours=($43.50 x 23,600) - 1,037,400

Overhead machine hours=$1,026,600- 1,037,400

Overhead machine hours= $10,800 underapplied

Therefore If overhead is applied based on machine hours, the overapplied/underapplied overhead is:$10,800 underapplied

5 0
3 years ago
Money invested in a business by either the owner or investors is called:
yanalaym [24]
1)D, i think...
2)B, i think... not sure
3 0
3 years ago
How do horizontally organized companies differ from traditionally organized companies
GenaCL600 [577]

Horizontally organised companies do not have a strict hierarchy of posts with increasing importance and allow more freedom to the employees.

Explanation:

Horizontally organised companies function very differently from traditional companies as the traditional structure is a pyramidal vertical structure.

<u>In this structure people at the top are few and are at higher  positions and issue orders which are distributed by managers to employees.</u>

<u>In the horizontal structure the managers are taken out of play and even the employees make important decisions for the company.</u> This allows for greater morale and freedom but can only work for small and medium sized businesses in certain niches.

7 0
3 years ago
Careers in the Transportation and Logistics career cluster are
saul85 [17]

Answer:

B)secure industries that are expected to grow.

Explanation:

The other person was right but just accidently said A) instead of B)

Hope this helps! :D

8 0
3 years ago
Other questions:
  • Suppose two companies own adjacent oil fields. under the two fields is a common pool of oil worth $60 million. for each well tha
    9·1 answer
  • Antonio assaulted Mark after the two argued about a parking space. The District Attomey's office prosecuted Antonio on assault c
    13·1 answer
  • You now have enough information about holden evan's corporate structure and how it has worked or fallen short in the past. you d
    7·1 answer
  • A large computer manufacturer forbids its executives and managers from serving as directors or officers for Hewlett-Packard or a
    5·1 answer
  • The survival of an organization depends on not just how productive the organization is, but also on ________. which products the
    12·1 answer
  • Samantha Parks is the owner and CEO of Sparks, a small New York agency that develops advertising, promotions, and marketing mate
    6·1 answer
  • Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholde
    15·1 answer
  • Fertility has been _____ in developed countries. Select one:
    13·1 answer
  • ASAP PLEASE!
    11·1 answer
  • Match the factors to the target capital structure preferred.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!