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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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Bad White [126]
Promotions Opportunity
4 0
3 years ago
Tax on imported goods used by governments to reduce imports and protect domestic industries. T/F
Tom [10]

Answer:

True

Explanation:

7 0
3 years ago
On January 1, Year 1, Zero Company obtained a $52,000, 4-year, 6.5% installment note from Regional Bank. The note requires annua
Gnom [1K]

Answer:

$ 11,799 is the principal balance of the note payable.

Explanation:

The  Interest expense for the installment note on the year of the December 31, year can be determined by the following equation that are mention below

= 52,000 * 6.5\ percent

52,000 * \frac{6.5}{100}

= $\ 3,380

Now the Principal balance  of the component in $15,179 payment of the  December 31, year 1  can be determined by the

principal\  and \ interest\ of \ note\ annual\  payments -   Interest\ expense \ for\  the\  installment\   note

= 15,179 -3,380

=$ 11,799

5 0
3 years ago
Luxury Linens Inc. produces the highest thread-count sheets available anywhere and does so at a price that none of its competito
vfiekz [6]

Answer: Sustainable competitive advantage

Explanation:

  The sustainable competitive advantage is basically refers to the abilities attributes and the quality of an organization that are different from the others competitors as it basically favorable to the long term position in the market.

The main objective of the sustainable competitive advantages is that it providing an efficient advantages in this competitive environment. Product differentiation, low cost provider and the strategic asset are the main advantages.  

According to the given question, the luxury linens Inc. is basically producing the high thread count and it measuring the various types of advantages such as profit, effective products of an organization.

Therefore, Sustainable competitive advantage  is the correct answer.

7 0
3 years ago
In your opinion ,what is the correct priority in making a business decision?#1 personel integrity,organizational values,profit..
kumpel [21]
The correct priority in making business decision is:

<span>#3 profit, organizational values,personal integrity.

The main reason why you put up a business is to gain profit. Thus, it is a priority. Second consideration would be the organizational values. Organizational values will determine the longevity of the company and the tenure of its employees.</span>
5 0
3 years ago
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