Answer:
a) Portfolio ABC's expected return is 10.66667%
Explanation:
The expected return is based on the risk factor of a project. If a project has higher risk its rate of return will be higher. Portfolio ABC has one third of its funds invested in each stock. The return of on A and B are 20% and 10%. Their beta is 1.0 for both the stocks while stock C has beta 1.4. The portfolio expected return will be 10.66667%.
Answer:
The correct answer is option d.
Explanation:
A monopoly is a market structure where there is a single firm in the market with no close substitutes. The firm is a price maker. There is high barriers to entry in the market.
Similar to monopoly other imperfect competition such as monopolistic competition and oligopoly also have barriers to entry, and are price makers. But the firms in such markets have different demand curve than the market demand curve.
But in a monopoly there is only single firm, so the market demand curve is the same as individual firm's demand curve.
Answer:
Retained Earnings Balance at end of Year 1 = $360
Explanation:
First we need to determine the profit/loss for the year as part of the retained earnings calculation.
Lexington Company
Income Statement for the year ended - Year 1
Revenue Earned $3,200
Less Expenses ($2,420)
Net Income / (Loss) $780
Then we calculate the Retained Earnings Balance
Retained Earnings Statement
Beginning Retained Earnings Balance $ 0
Add Profit earned during the year $780
Less Dividends ($420)
Ending Retained Earnings Balance $360
<span>Grassroots politics is a political campaigns works the way it uses face to face communications by citizens to gain interest and momentum.</span>
The cost of equity from retained earnings based on the DCF approach=9.44%
Explanation:
- The cost of equity from retained earnings based on the DCF approach can be calculated as follows,
- Therefore, rs =
+ g
