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Simora [160]
3 years ago
13

The common stock of Detroit Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11

.5 percent and the risk-free rate is 4 percent. What is the firm's cost of equity?
A. 10.05 percent
B. 12.98 percent
C. 14.05 percent
D. 15.50 percent
E. 15.67 percent
Business
1 answer:
stealth61 [152]3 years ago
6 0

Answer:

The firm's cost of equity is C. 14.05 percent

Explanation:

Hi, we need to use the following formula in order to find the cost of equity of this firm.

r(e)=rf+beta(rm-rf)

Where:

r(e) = Cost of equity

rf = risk free rate

rm = Market rate of return

Everything should look like this.

r(e)=0.04+1.34(0.115-0.04)=0.1405

So, this firm´s cost of equity is 14.05%

Best of luck

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The Foundational 15 [LO7-1, LO7-2, LO7-3, LO7-4, LO7-5][The following information applies to the questions displayed below.]Dieg
Pavlova-9 [17]

Answer:

See attached file

Explanation:

To obtain sales, the quantity sold is multiplied by the sale price in each of the regions.

Variable costs are multiplied by each of the quantities

Fixed costs are distributed according to what the company determined

From the difference between sales and variable costs we get the Contribution Margin. If the fixed costs are subtracted, the Segment Margin of each sector is obtained. Subtracting fixed costs that cannot be distributed, gives the Net Income.

The Fixed manufacturing overhead $ 800,000 was distributed between 40.000 units (produced units) not 35.000 (sold units)

4 0
3 years ago
Which is not one of the five fundamental questions?
astra-53 [7]
Economics in many cases is an exact science, but usually it is a practical one that has applications. Thus there are some practical goals that need to be answered with the use of economics and an easy to summarize form of them are the five fundamental questions of economics. 3 of the choices above are such fundamental questions; determining the way of production, the receiver of the production as well as the ways in which the economic system can change are of fundamental importance to the science of economics. The other 2 questions are: What products will be produced ? and How can we foster progress?
Choice d is a pretty important question too (that falls somewhat under a) but the fact that it mentions the government specifically makes it less general than the other propositions so it is not a fundamental question.
7 0
3 years ago
What two steps can a project manager take to overcome the planning fallacy?
Lemur [1.5K]

Two steps that a project manager should take to overcome the planning fallacy are:

A) Meet with teammates to uncover potential risks.

C) Consider all risks and carefully examine them.

The planning fallacy is a phenomenon in which predictions about how an awful lot of time might be wished to finish a future task show an optimistic bias and underestimate the time needed.

commonly, participants in those research show off the making plan fallacy. As an example, college college students are generally renowned that they've commonly completed beyond assignments very close to their deadlines, yet they insist that they will end the following undertaking well in advance of the brand new cut-off date.

The making plans fallacy refers to a prediction phenomenon, all too familiar to many, wherein humans underestimate the time it'll take to finish a future task, in spite of the information that previous responsibilities have commonly taken longer than planned.

<em>The question is incomplete. Please read below to find the missing content.</em>

<em />

What two steps can a project manager take to overcome the planning fallacy?

A)Meet with teammates to uncover potential risks.

B)Expand the project’s scope.

C)Consider all risks and carefully examine them.

D)Increase the project’s budget.

Learn more about the planning fallacy here brainly.com/question/9087023

#SPJ1

3 0
2 years ago
Ides receives 16 cents for every unit produced. Ides produces 2,976 pieces in a 43-hour workweek. For overtime, Ides is paid a s
mash [69]

Answer:

$492.78

Explanation:

Calculation for What The Ides' total piecework and overtime earnings are

Ides' total piecework and overtime earnings=[(2,976 × $0.16 ÷43*(0.5)]*3+[(2,976 × $0.16 )]

Ides' total piecework and overtime earnings= [($476.16 ÷ 43)*0.5]*3+[(2,976 × $0.16 )]

Ides' total piecework and overtime earning = ($11.07 × 0.5 )*3+[(2,976 × $0.16 )]

Ides' total piecework and overtime earnings= ($5.54 × 3)+$476.16

Ides' total piecework and overtime earnings = $16.62 + $476.16

Ides' total piecework and overtime earnings=$492.78

Therefore the Ides' total piecework and overtime earnings are $492.78

4 0
3 years ago
Sprint allocates general plant management costs on the basis of the number of production employees and plant security costs on t
Westkost [7]

Answer:

a.

General Plant Management Costs

Cost is $100,000

These costs are allocated on the basis of number of production employees.

Melting Department employs 35 workers and Molding employs 40 for a total of 75.

Melting Department = \frac{35}{75} * 100,000

Melting Department = $46,666,67

Molding Department = \frac{40}{75} * 100,000

Molding Department = $53,333.33

Plant Security Costs

Cost is $50,000

These costs are allocated on the basis of space occupied by the production departments.

Melting Department occupies 10,000ft² and Molding occupies 20,000 ft²  for a total of 30,000 ft²

Melting Department = \frac{10,000}{30,000} * 50,000

Melting Department = $16,666,67

Molding Department = \frac{20,000}{30,000} * 50,000

Molding Department = $33,333.33

2. Melting Department

= 110.000 + 46,666.67 + 16,666.67

= $173,333.34

Molding Department

= 400,000 + 53,333.33 + 33,333.33

= $486,666.66

3 0
3 years ago
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