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asambeis [7]
3 years ago
7

FedEx (FDX) has a beta of 1.50, the return on a 10-year U.S. Treasury bond, rrf, is 3.40%, and we use a stock market risk premiu

m of 5.5%, thus, [rM - rrf ] = 5.5%. Given the equation for the Capital Asset Pricing Model (CAPM) is: rFDX = rrf + [rM - rrf ]_, what is the required rate of return for FDX stock?a)-10.72%b)-11.01%c)-11.65%d)-11.99%e)-12.25%
Business
1 answer:
Fudgin [204]3 years ago
5 0

Answer:

C)  11.65%

Explanation:

Simply input the values in the formula

Required rate of return = Risk free rate + (Beta * Market premium)

= 3.40 + (1.5 * 5.5)

= 11.65%

Treasury bonds are taken as the prevailing risk free rate.

Hope that helps.

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For daily work production, several examiners can work together in a large open area, as long as they all have ________ level of
Tanzania [10]

Answer:

the same

Explanation:

When examiners in a large open area have the same level of authority and access, work production gives room for more efficeincy and increased production. This means that everyone is on the same level and can do everything needed without awaiting authorization and clearance which could slow down production.

Cheers.

3 0
3 years ago
At Dreher Products, management establishes monthly goals for its manufacturing teams but team members are free to determine work
sergey [27]

Answer:

Autonomy

Explanation:

correct answer is Autonomy because Autonomy is the ability to make informed, immoral decision-making, and especially in moral psychology and moral psychology and morality. Autonomous bodies or organizations are autonomous or autonomous. Autonomy can also be defined from the human resources perspective, where it refers to the level of discretion given to an employee in his or her work.

5 0
3 years ago
13) Baxter & Baxter has total assets of $710,000. There are 45,000 shares of stock outstanding with a market value of $28 a
madam [21]

Answer:

19.38

Explanation:

Baxter & Baxter

Market value share/ Percentage of profit margin ×(Total assets ×Total asset turnover)/Outstanding shares

Where:

Market value shares=28

Percentage of profit margin =71%

Total assets =710,000

Total asset turnover=1.29

Outstanding shares =45,000

Hence:

Price-earnings ratio =

$28/[0.071 ×($710,000 ×1.29)]/45,000

=19.38

4 0
4 years ago
Finance in an organization
ankoles [38]

Answer and Explanation:

a. In the first case as we know that the Chief Financial Officer ( CFO) is the company's high financial position and supervises several tasks.

But CFO would not be responsible for human resource, marketing and the production as these have the different departments and their manager would deal with it

So first three are not relevant for the CFO

b. According to the Sarbanes-Oxley Act of 2002, The SEC requires CFOs to certify the accuracy of the firm's earnings or we can say it would be correct. Hence, the last option is correct

7 0
4 years ago
Based on the marginal principle, would it make sense to for a business to expand their hours of operation if they project $1,500
krek1111 [17]

Answer:

Yes, because they will net $300 per week

Explanation:

According to the marginal principle, production can be increased if marginal revenue would exceed marginal cost. It means that the venture would be profitable

Marginal cost is the increase in cost as a result of increasing output by one unit.

total marginal cost = 1000 + 50 + 150 = 1200

Marginal revenue is the increase in revenue as a result of increasing output by one unit.

Marginal revenue exceeds marginal cost by (1500 - 1200) 300. Thus, hours of operation can be increased

6 0
3 years ago
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