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guapka [62]
3 years ago
12

A stock has a risk premium of 7.4% and the risk-free rate is 2.1%. What is the stock's fair return? Answer as a percent. Enter o

nly numbers and decimals in your response.
Business
1 answer:
frosja888 [35]3 years ago
8 0

Answer:

9.50%

Explanation:

The risk free rate is a rate which has no financial loss over a certain period. The risk premium is a rate excess of risk free rate. The risk premium is calculated by subtracting risk free rate from rate of return on an investment.

The stocks return will = risk free rate + risk premium

Stock's fair return = 2.1% + 7.4%

Stock's fair return = 9.50%

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Cash equivalents:______.
Rina8888 [55]

Answer:

C. Are readily converted to a known cash amount.

Explanation:

Highly liquid short term assets are those which are ready available for conversion into cash. These are also called Liquid assets. Highly liquid investment are made for short term investment interest revenues.

6 0
3 years ago
Thrice Corp. uses no debt. The weighted average cost of capital is 8.4 percent. If the current market value of the equity is $16
In-s [12.5K]

Answer:

$1,369,200

Explanation:

Calculation for EBIT

Using this formula

Value of Equity= EBIT / WACC

Let plug in the formula

$16,300,000 = EBIT / .084

EBIT = .084($16,300,000)

EBIT = $1,369,200

Therefore EBIT is $1,369,200

3 0
3 years ago
A hospital data entry professional is part of what career area?
ioda
C.health informatics
5 0
3 years ago
Read 2 more answers
What type of budget is used to forecast income and expense for ongoing business operations?
Kruka [31]

Answer:

The correct answer is: Operating budget.

Explanation:

An operating budget is an estimate a business make of the expenses and revenue it plans to book in its ongoing operations. Operating budgets can also be used to forecast future operating corporate periods. This type of budget mainly includes the <em>number of sales expected in dollars</em>, <em>fixed and variable costs</em> as well as <em>operating expenses</em> such as loan payments or depreciation.

4 0
3 years ago
Managers are well-advised to consider whether the company can operate more profitable by selling some/all of its plant capacity
trasher [3.6K]
The answer is when global demand for exclusive and private-label footwear is so far under global plant volume that it will be intolerable for most all companies to cost-effectively operate their plants at full volume for many years to come. If the prediction shows that global demand is far under global volume, then it isn't conceivable for everyone to sell everything. In this circumstance the most liquid and solvent company will appear ahead, maybe a company could hold onto volume and ferociously hold onto market share.
6 0
3 years ago
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