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
Lubov Fominskaja [6]
3 years ago
15

Ronald's Fast Food just paid their annual dividend of $1.05 a shareThe stock has a bela of 1.6. The return on the US Treasury bi

ll (risk-free rate ) is 8 percent the expected retum on the market is 15 percent What the cost of equity
Business
1 answer:
natali 33 [55]3 years ago
6 0

Answer:

19.2 %

Explanation:

Using the Capital Asset Pricing Model we can simply input the given information.

Formula

Cost of Equity = Rf + B * (Mr - Rf) where,

Rf = Risk free rate = T-Bill rate

B = Beta

Mr = Market return

so,

Cost of Equity = 8 + 1.6 * (15-8)

= 19.2 %

You might be interested in
Franktown meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the divid
Monica [59]

I guess the correct answer is $15.77

Franktown Meats just announced that they are increasing the annual dividend to $1.75 and establishing a policy whereby the dividend will increase by 2% annually thereafter. One share of this stock be worth six years from now is $15.77 if the required rate of return is 14.5%

5 0
3 years ago
Block of crust that is located above the fault of plane?
STatiana [176]
A hanging wall is a block of crust that is located above a fault plane hint for identification if a person were able to sand on the fault plane they could hang on to the hanging wall fault blocks. represent blocks of Earth crust
5 0
3 years ago
Privacy protection in the united states is ________ in europe.
Rus_ich [418]
<span>Privacy protection in the United states is much less stringent than in Europe.

Stringent is another word for strict. European privacy protection laws are much more strict than those in the United States. Privacy protection refers to the means of protecting your privacy and companies are not allowed to give out personal </span>information without confirmation they are allowed to do so. 
7 0
3 years ago
Windspire is starting a firm in the small-scale wind-generated power industry. This industry is still so new that no standard op
liq [111]

Answer:

Emerging

Explanation:

An emerging industry is a group of companies that is created around a new product or idea that is still in the early stages of development. An emerging industry consists of just a small number companies and is often centered around new technology. A example is the small wind generated power industry because wind is not a common source that is used for the generation of power.

4 0
3 years ago
What most directly explains the boost in production of mccormick reapers?.
marishachu [46]

The adoption of interchangeable parts is the statement that directly explains the boost in production of mccormick reaper.

<h3>What is mccormick reaper?</h3>

The mccormick reaper is a mechanical mechanism that was created by Cyrus McCormick for farmers to harvest crops mechanically.

In conclusion, the adoption of interchangeable parts is the statement that directly explains the boost in production of mccormick reaper.

Read more about mccormick reaper

<em>brainly.com/question/487638</em>

7 0
2 years ago
Other questions:
  • Jeffreys Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 los
    11·1 answer
  • At a local university, students talk about being able to retake an exam three times as a way of showing how committed the school
    8·1 answer
  • Use the table and proivded and explain the law of diminshing returns<br><br>plz help asap ​
    10·1 answer
  • Precision Dyes is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 15
    8·1 answer
  • Product focused processes: a) are desirable because resource needs increase slowly with the complexity of a process. b) are proc
    11·1 answer
  • 5. Risk analysis in capital budgeting Projects differ in risk, and risk analysis is a critical component of the capital budgetin
    9·1 answer
  • Shawn approaches most aspects of life with the expectation that he will be successful. He expects a great deal of himself and se
    10·1 answer
  • Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the
    14·1 answer
  • If adult workers and teenagers are complements, the elimination of the minimum wage for teenage workers would cause the demand f
    5·1 answer
  • which statement provides the best advice about instant messaging and texting on the job? a. maintain one contact list for both p
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!