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adell [148]
3 years ago
14

You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have been

provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 1.30. Based on the CAPM approach, what is the cost of common from reinvested earnings?a. 9.67%b. 9.97%c. 10.28%d. 10.60%e. 10.93%
Business
1 answer:
damaskus [11]3 years ago
7 0

Answer:

Based on the CAPM approach, the cost of common from reinvested earnings is e. 10.93%

Explanation:

Hi, first, let´s introduce the formula for the CAPM approach.

Cost(e)=rf+beta*RPM

Therefore:

Cost(e)=0.041+1.30*0.0525=0.1093

So, the cost od common from reinvested earnings is 10.93%, which would be option "e".

Best of luck.

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The question is incomplete:

Ask Socrates, Inc., employees are allowed to dress informally. This is an example of a __________ through which organizational culture is transmitted.

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According to this, the answer is that this is an example of a material symbol through which organizational culture is transmitted because a material symbol is a non-verbal form of communication from the employer to the employees and in this case, the company allows employees to dress informally and the organization's culture is communicated through this.

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mario62 [17]

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6 0
3 years ago
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It seems that you have missed the necessary options for this question, but anyway, the correct answer for this would be PRESENT VALUE. The current value of a future sum of money is called a present value. Hope this is the answer that you are looking for. Have a great day!
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Answer:

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