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nikdorinn [45]
3 years ago
13

Hampton Corporation has a beta of 1.3 and a marginal tax rate of 34%. The expected return on the market is 11% and the risk-free

interest rate is 4%. Estimate the firm’s cost of internal equity.
Business
1 answer:
vekshin13 years ago
7 0

Answer: 13.1%

Explanation:

Using the Capital Asset Pricing Model, the expected return is;

Expected Return = Risk Free rate + beta(expected return - risk free rate)

= 4% + 1.3( 11% - 4%)

= 4% + 9.1%

Expected Return = 13.1%

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Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 20% of the next month's sales.
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Answer:

The number of units that would appear in June's production budget are 297000 units.

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3 years ago
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Suppose that you are a buyer. your buyer value is $30 and you buy a book for $40. what is your gain or loss?
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The buyer value is a concept that is more important to the customers. This refers to the amount that the buyers are expecting out of the purchase of some goods. If I bought a book at a price of $40 then, I loss $10 in the process because as a buyer I expect to pay only $30. 
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3 years ago
You have accumulated $85,000 in student loans that average 5% interest. You graduate next month and will be paying off the loans
photoshop1234 [79]
Use the formula of the present value of an annuity ordinary which is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv present value 85000
PMT monthly payment?
R interest rate 0.05
K compounded monthly 12
N time 10 years
Solve the formula for PMT
PMT=Pv÷[(1-(1+r/k)^(-kn))÷(r/k)]
PMT=85,000÷((1−(1+0.05÷12)^(
−12×10))÷(0.05÷12))
=901.55 round to the nearest tenth to get 900

Hope it helps!
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