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Scilla [17]
3 years ago
14

Southern Home Cooking just paid its annual dividend of $.75 a share. The stock has a market price of $16.80 and a beta of 1.14.

The return on the U.S. Treasury bill is 2.7 percent and the market risk premium is 7.1 percent. What is the cost of equity
Business
1 answer:
SIZIF [17.4K]3 years ago
8 0

Answer:

The multiple choices are:

9.98 percent

10.04 percent

10.79 percent

10.37 percent

10.45 percent

The third option of 10.79% is correct

Explanation:

The cost of equity according to Miller and Modgiliani capital asset pricing model is given below:

Ke=Rf+beta*(Mrp-Rf)

Rf is the risk free rate which is the return on government security is 2.7%

beta is 1.14

Mrp is the market risk premium is 7.1% which is given in the formula as (Mrp-Rf)

Ke=2.7%+1.14*7.1%

Ke=2.7%+8.09%

Ke=10.79%

Hence the correct option out of the options given above is the third option

It is expected that any shareholder that invests in the shares of Southern Home Cooking would get return of 10.79%

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The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $3,044. A
Inessa [10]

The correct options are

A)$4,332B)$3,734C)$3,072D)$5,086

Answer:

$5086

Explanation:

Total cost is defined as the amount spent in a production process which involves variable cost such as labour and raw materials which change with volume of production.

In addition fixed cost that remain constant with volume of production are also considered as part of total cost.

In the give scenario

Direct materials is $3,044

Direct labour cost is $15 * 46 = $690

Machine use cost $13 * 104 = $1,352

Total cost = 3,044 + 690 + 1,352 = $5,086

3 0
3 years ago
German automakers Audi, Mercedes-Benz, and BMW all share the same goal of leading the international luxury vehicle market. Audi
Lena [83]

Answer:

A. Attacking Competition.

Explanation:

Audi's approach of targeting younger professionals in established markets is a strategic move aimed at attacking competition because 'target market'is a market positioning strategy. A target market is a particular group of customers that a product or company is aiming at, and in the case of Audi it is young professionals in established markets. Target market is also a marketing strategy which shows the area of the market that a particular competitor wants to focus on, to gain market share.

5 0
3 years ago
Agent Emily's listing was sold by another agent in her brokerage. Emily is entitled to a:______.a. selling side commission.
GaryK [48]
I think it’s C but not really sure
5 0
3 years ago
Authors<br> d. p. rosenbaum and g. ganson concluded that the<br> d.a.r.e. program _________.
Pani-rosa [81]

Drug Abuse Resistance Education (D.A.R.E.) is a police officer-led  arrangement of classroom exercises that shows kids (normally in rudimentary or center school) how to remain tranquilize free and oppose peer weight.  

According to Rosenbaum and Hanson (1998), D.A.R.E has no critical in general effect on utilizing cigarettes or liquor  

They concluded that, Given the tremendous uses in time and cash required with D.A.R.E., no doubt proceeded with endeavors should center around different systems and projects that may deliver more significant impacts.

5 0
3 years ago
Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm is
Semmy [17]

Answer:

A.$2.99

B.$1.15

Explanation:

Frantic Fast Foods

A.Computation of the earnings per share for the year 20X

Using this formula

Earnings per Share=Earnings after Taxes/Shares Outstanding

Let plug in the formula

900,000/301,000

=$2.99

The earnings per share for 20X1 will be $2.99

B. Computation of the earnings per share for the year 201X

Earnings after Taxes= 301,000 * 1.28 = 385,280

Shares Outstanding=301,000 + 32,000 = 333,000

Hence,

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385,280 / 333,000 = $1.15

Therefore the earnings per share for 20X1 will

be $1.15 .

5 0
3 years ago
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