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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 %

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Personal finance skills help you to understand how much you earn, what are your monthly expenses, and help you budget within that income.

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2 years ago
A company has a process that results in 26000 pounds of Product A that can be sold for $8 per pound. An alternative would be to
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Sell now, the company will be better off by $18200

Explanation:

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3 years ago
Read 2 more answers
What is a natural monopoly?
Lubov Fominskaja [6]

Answer:

D. A monopoly that results when one firm is able to produce at a lower cost than multiple firms, giving large firms with higher levels of output an advantage over smaller competitors.

A. Municipal Power Light, the local supplier of electricity.

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6 0
2 years ago
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1 . The cost of removing the existing structure should be included in the land account, in the sense that, It is the cost of preparation of the land for the purpose for which it was purchased.

2. Depreciation can be defined as a decrease or fall in the value of fixed asset, it is the part of the cost of fixed asset consumed during the period of use of the asset by the firm. It allocated that is set to measure the service the asset has provided during the accounting period.

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