Answer:
The required return on equity is 17%.
Explanation:
The required rate of return is the minimum return required by the investors to invest in a stock. The required rate of return is calculated under the CAPM approach based on the the stock's beta, the risk free rate and the market risk premium. The formula for the required rate of return is,
r = rRF + beta * rpM
r = 0.05 + 1.5 * 0.08
r = 0.17 or 17%
A stepping stone towards a future education is when the student graduates from high school and got his or her diploma. This is the turning point where he or she will start on choosing the path of their careers and start on this careers in the betterment of the country and future education that they will learn as they step high.
Answer:
The bank will create excess reserve of $200 billion
Explanation:
The question measures the size of credit expansion associated with the new currency deposit. the computation below shows how excess reserves can be computed.
Money multiplier = 1
/Legal Reserve Ratio = 1/0.2 = 5
Excess Reserve Created = A x (1
/Legal Reserve Ratio)
Where: A = New currency deposit = $40
Legal Reserve Ratio = 0.20
Excess Reserve Created = $40 x (1/0.2) = $40 x 5 = $200 billion
The legal reserve of 5 indicates that for every unit of money reserved by banks, they are able to create 5 units of same.
The money creation capability of the banking system as a whole is depends on the legal reserve ratio. Legal reserve ratio is a fraction of a bank deposit which the law requires them to hold. The bank can only lend the balance after deducting the legal reserve.
An automobile business enterprise comes to a decision to enhance the excellence of its merchandise and bring more range into its entire product line. The employer has decided to adopt: industry-wide differentiation.
A vehicle is a motor automobile this is designed or adapted specifically to hold people on highways and streets and has a seating ability of no longer greater than the driver and eight passengers. both terms, automobile, and automobile are associated with car enterprise. the vehicle is a noun that normally refers to a 4-wheeled automobile car designed for passenger transportation whereas the automobile is an adjective relating to motor vehicles. this is the principal distinction between vehicles and automobiles.
The industry's main products are passenger vehicles and mild trucks, along with pickups, vans, and recreation software motors. business vehicles (i.e., shipping vehicles and big shipping vans, frequently referred to as semis), even though critical to the industry, are secondary.
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Answer:
core competency
Explanation:
A core competency is a concept in management theory introduced by C. K. Prahalad and Gary Hamel. It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace" and therefore are the foundation of companies' competitiveness.