Answer: d. The actual expected stock return indicates the stock is currently underpriced.
Explanation:
According to CAPM, the expected return is:
= Risk free rate + beta * (market return - risk free rate)
= 4.3% + 1.14 * (12.01% - 4.3%)
= 13.09%
The actual expected return is greater than the CAPM expected return.
This stock is underpriced because it is bringing in a higher return than CAPM predicted based on the market.
Answer:
The number of shares of common stock own after the stock spilt is 14,400
Explanation:
The number of shares of common stock own after the stock spilt is computed with the formula as:
Number of common stock after stock spilt = Number of common stock before stock spilt × Stock spilt multiple
= 3,600 × 4 / 1
= 14,400 shares
Compared to the price elasticity of demand for gasoline, the demand for Texaco gasoline will be <u>more elastic</u>.
Price elasticity of call for is the ratio of the proportion change in the amount demanded of a product to the percentage exchange in rate. Economists hire it to apprehend how supply and demand trade when a product's price changes.
If a fee alternate for a product causes a giant change in both its supply or call for, its miles are considered elastic. Generally, it manner that there are acceptable substitutes for the product. Examples would be cookies, luxury cars, and coffee.
In commercial enterprise and economics, price elasticity refers to the degree to which people, purchasers, or producers alternate their demand or the quantity supplied in response to fee or earnings adjustments. it is predominantly used to evaluate the trade-in consumer call for because of an alternate in an excellent or carrier's price.
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Answer:
To solve this problem, first let us calculate for the total cost:
Total cost = Capital cost + Cost of capital
Total cost = $ 20 M + 0.10* $ 20 M
Total cost = $ 22 M
The breakeven point would be the price in which the total earnings is equal to the total cost. Therefore:
$ 15M + 20,000 * X = $ 22 M
Where X is the breakeven price in dollars per room per night
Calculating for X:
20,000 * X = $ 7 M
X = $ 350
Therefore the break even price is $ 350 per room per night.
Explanation:
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Answer:
d) Title 1 should be Financial Management Career Pathway, and Title 2 should be Investment Career Pathway
Explanation:
i believe its D but im not exactly sure