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Pavlova-9 [17]
3 years ago
12

In February 2017 the risk-free rate was 4.97 percent, the market risk premium was 7 percent, and the beta for Twitter stock was

1.40. What is the expected return that was consistent with the systematic risk associated with the returns on Twitter stock?
Business
1 answer:
Gnesinka [82]3 years ago
5 0

Answer:

14.77%

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 + Beta × (Market rate of return - Risk-free rate of return)

= 4.97% + 1.40 × 7%

= 4.97% + 9.8%

= 14.77%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium and the same is shown in the answer

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Unlike goods, services:
harina [27]

Answer:

(D) are more heterogeneous and less standardized and uniform

Explanation:

Since services have greater heterogeneity, there is some variability of inputs and output in services, so they tend to be less standardized and uniform than goods.

7 0
3 years ago
Victor Rumsfeld Inc.'s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capi
melomori [17]

Answer:

The multiple choices are

a.  $240,000

b. $228,000

c. $216,600

d.$205,770

e. $0

The correct option is E,$0

Explanation:

The funding required from equity is 40% of the projected capital budget of $2000,000 which is expected to be from the profit attributable to stockholders since new issue of shares is not contemplated.

In other words, dividends payable to shareholders is the net income less their counter funding of the project which is computed below:

residual dividends=net income-(equity%*capital outlay)

residual dividends=$300,000-(40%*$2000,000)

                               =$300,000-$800,000=$0

In essence the $300,000 is not even enough as funds expected from equity less alone paying excess as dividend

3 0
3 years ago
When the company pays rent expense for the current month, what is the effect on the accounting equation for that company?
GREYUIT [131]

Answer:

decrease the stockholder equity and decrease in assets

Explanation:

As we know, the accounting equation is  

Total assets = Total liabilities + stockholder equity

In the given case,  

The rent is paid for the current month, so the journal entry would be

Rent expense A/c Dr XXXXX

    To Cash A/c XXXXX

(Being rent is paid)

So it decreases the stockholder equity as it includes the income and expenses part and it decreases in assets as it reduces the cash balance

3 0
3 years ago
MARK AS BRAINLY//
ozzi

Answer:

Consumer Financial Protection Bureau

8 0
2 years ago
Another word for Interpersonal Communication is Question 2 options: a) face-to-face communication b) dyadic communication c) par
SpyIntel [72]

Another word for interpersonal communication is FACE TO FACE COMMUNICATION. The correct option is A.

Interpersonal communication is a face to face communication process through which people exchange information and express their feelings either verbally or non verbally. Interpersonal communication is a two way communication and the skill of listening is very important in this type of communication. Face to face communication plays a crucial role in building up and maintaining relationships with people. It is a very important concept which one must master in order to be a good team player and a sociable person.  

6 0
2 years ago
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