Answer:
16.07%
Explanation:
The computation of the expected return on the market is shown below
As we know that
Expected Return on stock = Risk free return + beta ( Expected Market Rate of Return - Risk free return )
15 % = 5.3% + 0.90 × (Expected Market Rate of Return - 5.3%)
15 % - 5.3% ÷ 0.90 = Expected Market Rate of Return - 5.3%
10.77% = Expected Market Rate of Return - 5.3 %
So, expected market rate of return is
= 10.77 + 5.3%
= 16.07%
We simply applied the above formula
Answer: 13.2%
Explanation:
Given data:
No of stores in the market = 5000
No. of store owners = 2000.
Allison charges = $8/month
Sam charges = $8/month.
Solution:
The market penetration rate would be calculated based on potential customers.
Using our general formula,
Market penetration=Numbers of customers who purchased Allison derived sales and Sam derived sales /Total potential population
Where,
Total potential population=1,500
•Allison derived sales = 129 customers
•Sam derived sales = 69 customers
•Numbers of customers who purchased Allison derived sales and Sam derived sales=129 customers+ 69 customers
•Numbers of customers who purchased Allison derived sales and Sam derived sales =198 customers
Let’s input this into our general formula.
Market penetration
= 169 customers/1,500
= 0.132*100
= 13.2%
The market penetration rate based on potential customers is 13.2%
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Answer:
b. 10% doubling
Explanation:
Options are <em>"a. tripling, b. 10% doubling, c. 90% tripling, d. 90% doubling, e. 10%"</em>
In this question, 90%(0.9) learning rate means that (1-0.9)10% unit of input is reduced each time the production is doubled. In a nutshell, the learning curve percentage represents the proportion by which the amount of an input per unit of output is reduced each time production is doubled.
Answer:
5.61 years
Explanation:
Let the Present value be 'x'
Data provided in the question:
Future value = 
Inflation rate, i = 5% = 0.05
Now,
Using the compounding
let number of years be n
thus,
Future value = Present value × [ 1 - inflation rate ]ⁿ
= x × (1 - 0.05)ⁿ
or
0.75 = 0.95ⁿ
on taking log on both the sides
, we get
or
log(0.75) = n × log(0.95)
or
-0.125 = n × (-0.0223)
or
n = 5.61 years
or, n = 11.89 years
