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frozen [14]
3 years ago
12

A stock has a required return of 11%; the risk-free rate is 7%; and the market risk premium is 4%.

Business
1 answer:
kotegsom [21]3 years ago
6 0

Answer:

The Beta is 1

The required return increases to 13%

Explanation:

The formula for required return is given below:

Required Return = Risk-Free Rate of Return + β(Market Return – Risk-Free Rate of Return)

required return is 11%

risk-free rate of return=7%

Beta is unknown

market return-risk free rate of return is market risk premium is 4%

11%=7%+beta(4%)

11%-7%=beta*4%

4%=beta*4%

beta=4%/4%

beta=1

If the market risk premium increased to 6%,required return is calculated thus:

required return=7%+1(6%)

required return =13%

This implies that the riskier the stock, the higher the market risk premium, the higher the required return to investors.

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In the context of the vertical structure of a firm, a wide span of control builds a _____ organization with few reporting levels
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Answer:

flat

Explanation:

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It should be noted that In the context of the vertical structure of a firm, a wide span of control builds a flat organization with few reporting levels.

3 0
2 years ago
On which group will a progressive tax place a greater tax burden?
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5 0
3 years ago
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Answer:

The cost of goods sold for the period is:

= $250,600.

Explanation:

a) Data and Calculations:

Beginning Raw Materials Inventory                  $30,600

Ending Raw Materials Inventory                         70,600

Beginning Work in Process Inventory                40,600

Ending Work in Process Inventory                     46,600

Beginning Finished Goods Inventory                72,600

Ending Finished Goods Inventory                     68,600

Cost of Goods Manufactured for the period 246,600

To determine the cost of goods sold:

Beginning Finished Goods Inventory             $ 72,600

Cost of Goods Manufactured for the period  246,600

Cost of goods available for sale                    $319,200

Ending Finished Goods Inventory                    (68,600)

Cost of goods sold                                        $250,600

4 0
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A profit center is evaluated by the rate of return earned on the investment allocated to the center. referred to as a loss cente
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We know that

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It is the responsibility center at which we know about the total cost incurred and total revenues earned so that it becomes easy to compute how much the firm has earned the profit in a year.

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3 years ago
When a labor union and an employer cannot agree on the terms of a contract what often happens?
vesna_86 [32]
A would be a good answer. 
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