For this question you can use the CAPM formula:
E(rs) = risk free + (market return - risk free rate)*(beta)
=4.5% + (10.8% - 4.5%) * 1.3
= 4.5% + 8.19%
= 12.69%
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Answer:
7.514%
Explanation:
Given that,
Internal growth rate = 7.1%
Dividend payout ratio = 25% per year
Total assets to sales ratio = 0.85
ROA:
= Internal growth rate ÷ [(1 - payout ratio)(1 + internal growth rate)]
= 7.1% ÷ [(1 - 25%)(1 + 7.1%)]
= 0.071 ÷ (0.75 × 1.071)
= 0.071 ÷ 0.80325
= 8.84%
ROA = Net income ÷ Total assets
Now, we multiply and divide right hand side by sales
ROA = (Net income ÷ sales) ÷ (Total assets ÷ sales)
= (Net income ÷ sales) × (sales ÷ total assets)
8.84% = Profit margin × (1 ÷ 0.85)
Profit margin = 8.84% × 0.85
= 7.514%
Answer:
B) Integrity.
Explanation:
The Institute of Management Accountants is body, they are regarded as association for financial professionals and they were recognized globally.
The Four standards that is Been set up as ethical conduct in management accountants in IMA are;
✓competence
✓ confidentiality
✓integrity
✓credibility
Integrity which is one of the standards is essential, it involves the accountant been honest and be forthright when handling financial information of clients.
Answer:
Passive investment
<h3>
What is Passive Investment?</h3>
- Passive investment refers to an investment strategy used by investors to increase their returns by selling and buying.
- Investors use this investment strategy to prevent some fees and cut out limited performance that may likely accompany regular trading.
Some of these benefits include:
Transparency: investors do know the assets in an index fund
Extreme low fees: monitoring is not necessary simply because no one is picking stocks
Tax efficiency: this strategy does not lead to a yearly tax of massive capital gains since passive investors only buy and hold.
Simplicity: Owning an index is very easy to implement and understand when compared to a dynamic strategy that involves regular adjustment and research.
To learn more about it, refer
to brainly.com/question/26386481
#SPJ4
D) By reducing expenses you increase margins which means there is more money available for stockholders