1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Scorpion4ik [409]
4 years ago
11

TJ Co. stock has a beta of 1.45, the current risk-free rate is 5.75, and the expected return on the market is 14 percent. What i

s TJ Co's cost of equity?
Business
1 answer:
natta225 [31]4 years ago
7 0

Answer:

17.71%

Explanation:

For this problem, we will be making use of the Capital Asset Pricing Model (CAPM) equation, as seen below:

ERi = Rf + β(ERm - Rf)

  • ERi = expected return of investment
  • Rf = risk free investment = 5.75%
  • β = beta of the investment = 1.45
  • (ERm - Rf) = market risk premium = 14% - 5.75% = 8.25%

ERi = 5.75% + (1.45 x 8.25%) = 5.75% + 11.96%  = 17.71%

You might be interested in
Which PCI security requirement relates to the physical protection of banks’ customer data?
iVinArrow [24]

The answer is <u>"D. Network vulnerability management".</u>


A network vulnerability assessment is the way toward auditing and dissecting a PC arrange for conceivable security vulnerabilities and escape clauses.  

It is utilized by system chairmen to assess the security design and safeguard of a system against possible vulnerabilities and dangers.  

A network vulnerability assessment helps network administrators or organize security staff to evaluate the security quality of a specific system.

4 0
3 years ago
Read 2 more answers
Workers over forty tend to be motivated by intrinsic motivators.<br><br><br> True<br><br> False
borishaifa [10]

Answer: true

Explanation:

i sorta just guessed

4 0
3 years ago
Aggregate demand shifts right if a. government purchases increase and shifts left if stock prices rise. b. government purchases
max2010maxim [7]

Answer:

The correct answer is option b.

Explanation:

Aggregate demand represents the overall demand of goods and services in the economy in a year. It is comprised of consumption spending, investment, government spending, and net exports.

An increase in the government spending will increase the aggregate demand, so the aggregate demand curve will shift to the left.

A decrease in the stock prices, on the other hand, will cause the aggregate demand to fall, shifting the curve to the left. This happens because decrease in stock prices causes the wealth of the investors to decline. The consumer spending decreases and so does aggregate demand.

8 0
4 years ago
During the year ended December 31, 2022, Bjornstad Corporation had the following results: net sales $267,000, cost of goods sold
aliya0001 [1]

Answer:

<em>profit margin 34.61%</em>

Explanation:

profit \: \: margin = \frac{profit}{sales}

<em>The profit margins represents how many cent or the percentage of sales which converts into net income.</em>

<em>net income:</em> 92,400

<em>net sales:</em> 267,000

profit \: \: margin = \frac{92,400}{267,000}

<em>profit margin</em> = 0.346067415 = <em>34.61%</em>

7 0
3 years ago
Suppose a​ firm's tax rate is 35%.
Pie
<span>A $10 million operating expense would be immediately expensed, increasing operating expenses by $10 million. This would lead to a reduction in taxes of  $3.5 million. earnings would decline by $6.5 million. There would be no effect on next year's earnings.</span>
8 0
3 years ago
Other questions:
  • He software which controls the basic workings of the computer system is called a(n _____.
    10·1 answer
  • A selection model in which an applicant moves on to the next stage in the process on the condition that she or he satisfies a sc
    15·1 answer
  • Precise Machinery is analyzing a proposed project. The company expects to sell 7,500 units, ±10 percent. The expected variable c
    11·1 answer
  • The period between March 9 and June 16, 1933, when Congress passed 15 major acts to meet an economic crisis, was called________.
    7·1 answer
  • ​Seth, an administrative manager at Seal Inc., is asked to purchase ten printers for the firm's office. He contacts a sales repr
    13·1 answer
  • Suppose that the technology used to manufacture laptops has improved. The likely result would be: Select one: a. an increase in
    12·2 answers
  • The​ Solomon, Smith, and Samson law firm produces many legal documents that must be word processed for clients and the firm. Req
    10·1 answer
  • Raul owned a small graphic design business. He used 3-D software and computers to create animations for his clients. Which facto
    8·1 answer
  • Which of the following is an investigator’s commitment to the sponsor?
    9·1 answer
  • 9.3.2 Quiz: Estate Planning
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!