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Paha777 [63]
3 years ago
9

Thayer Farms stock has a beta of 1.38. The risk-free rate of return is 3.87 percent, the inflation rate is 3.93 percent, and the

market risk premium is 9.03 percent. What is the expected rate of return on this stock?A. 8.35 percent B. 9.01 percent C.10.23 percent D.13.21 percent E. 13.73 percent
Business
1 answer:
Rasek [7]3 years ago
3 0

Answer:

Cost of Equity  16.33%

Explanation:

We solve for this using CAMP:

Ke= r_f + \beta (r_m-r_f)

risk free = 0.0387

premium market = (market rate - risk free) 0.0903

beta(non diversifiable risk) = 1.38

Ke= 0.0387 + 1.38 (0.0903)

Ke 0.16331 = 16.33%

We are given with the risk free rate of return and the market premium already so we just need to plug into the formula to solve for the expected return on the stock.

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How do birthrates and death rates change as a country moves from a least developed or traditional economy to developing-nation s
oksian1 [2.3K]

As a country makes the transition from a least developed economy to developing nation status the Birthrates and Death Rates will increase. Birthrates will increase due to immigration. The healthcare services generally improves when a country develops more and becomes more industrialized. It helps improve the economy which in turn gives more people the opportunity to have more children and to lead healthier lives. So the birth rates go up. Death rates will go up too due to an increase in criminal activity.

7 0
3 years ago
11. In the first quarter of 2010, U.S. advertisers spent $5.9 billion on online advertising. In the first quarter of 2011, they
oee [108]

Answer:

The percentage rate of growth from 2010 to 2011 is the 1237.3%

Explanation:

The percentage rate or growth for online advertising spend in 2011 compared to 2010 is obtained when calculating the following operations:

1. You must know what is the base figure you want to use to determine the percentage growth. In this case $5.9 Billion is the base figure you will use.

2. You want to know what is the figure with which you will determine the final growth. In this case is $73 billion.

3. You replace the values in the following formula:

percentage rate or growth =(( <u>   Final growth figure   </u> )  ) x 100

                                                         Base figure

percentage rate or growth =(( <u>  73   </u> )  ) x 100

                                                     5.9    

percentage rate or growth = 12.3728 x 100

percentage rate or growth = 1237.28

4. As you want to round your answer to one percentage place, then you round to .28 to .3 that is the next higher decimal number.

percentage rate or growth = 1237.3%

6 0
3 years ago
Can you guys help me with this is hard
earnstyle [38]
Is there some sort of word bank or something?
8 0
3 years ago
Brandon is an office manager with a college degree, five years of experience, and a track record of being rated excellent at his
Dafna11 [192]

Answer:

Brandon needs to compare his salary to other employees of the company, he needs to pay special attention if:

  1. If the supervisors from other departments or units of the same company earn more than Brandon.
  2. If his own staff members earn a salary that is very similar to Brandon's.
  3. If his immediate superior earns a salary that is disproportionately higher than Brandon's.

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3 years ago
Diane is passionate about soccer and decides to open her own soccer sporting goods store. She invests her money, time, and effor
tigry1 [53]

Answer:

The answer is entrepreneur

Explanation:

Diane showed the trait of an entrepreneur. An entrepreneur is someone who tries to solve a particular problem or challenge by setting up a business. He takes up the risk and tries to fight it in order to be successful because of the passion he has for the business. Entrepreneur also sources for the capital for the business which can be in form of borrowed money or equity contribution.

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