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BARSIC [14]
4 years ago
5

Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future

, (2) the real risk-free ate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.40, and (5) its realized rate of return has average 15.0% over the last 5 years.(A) 22.61%(B) 15.96%(C) 19.00%(D) 21.66%(E) 22.04%

Business
1 answer:
Ivahew [28]4 years ago
6 0

Answer:

(C) 19.00%

Explanation:

Please see attachment

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Net income reported under absorption costing will exceed net income reported under direct costing for a given period if: Group o
bazaltina [42]

Answer:

b. Production exceeds sales for that period.

Explanation:

This is said to be calculated or gotten from Earnings Before Interest And Taxes(EBIT). This is generally referred to as EBIT. They are returns from investments made in real estate or other forms of investments in a company that is gathered after all taxes and also other interests.

In arithmetic calculations it is done by calculating gross revenue from sales and services and also labour that was been involved. Remove the cost of goods sold, then add expenses from utilities, rent etc.

7 0
3 years ago
Which of the following is not a reason to invest excess cash in temporary investments? earn interest revenue receive dividends r
Crank
Investors for invest in cash due to its insufficient value
5 0
3 years ago
________ are defined as organized cognitive representations of the key elements within a team's environment that team members sh
Allushta [10]

Answer:

<u>A) Path-goal models</u>

Explanation:

  • A path growth model is a theory that is based on specifying the leadership style or the behavior that best the employe and the work environment so as in order to achieve the goal.
  • The theory identifies the achievement-oriented, and the directive, the participative and the supportive leader which works with the team to best achieve the task, and has is adjustable and shows concern of r the employees of the group.
4 0
3 years ago
You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $ 10 milli
Lana71 [14]

Answer:

A)Choose A B) Choose B C) 0.45

Explanation:

We will use the NPV formula to calculate the IRR and them choose investment opportunity with a high IRR

NPV (A)=CF/R -II

       0 =2.4/r -10 m

        r=0.24/24%

NPV(B)=1.8/r-0.045-10

         0=1.8/r-0.045-10

          r=0.135/13.5%

Therefore choose A

B)NPV (A)

=2.4/0.064-10

=$27.5 MIL

NPV (B)

=1.8/0.064-0.045 -10

=1.8/0.019-10

=$84.74 MIL

Therefore choose B as it has higher NPV

C) Equate the NPV to in order to calculate the cost of capital

2.4/r -10 =1.8/r-0.045 -10

2.4/r=1.8/r-0.045

1.8r=2.4r-0.108

0.6r=0.108

r=0.556/5.56%

=

       

8 0
3 years ago
The following items are reported on a company's balance sheet: Cash $160,000 Marketable securities 75,000 Accounts receivable (n
marusya05 [52]

Answer and Explanation:

a. The current ratio is

We know that

Current ratio = Current Assets ÷ Current Liabilities

= $440,000 ÷ $200,000

= 2.2

Cash $160,000

Marketable Securities $75,000

Account receivable $65,000

Inventory $140,000

Current Assets $440,000

Account Payable $200,000

current liabilities $200,000

b

Quick ratio =( Current assets - inventory ) ÷ Current Liabilities

= ($440,000 - $140,000 ) ÷ $200,000

= 1.5

7 0
3 years ago
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