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lutik1710 [3]
3 years ago
12

Lego is considering an investment in Disney corporation. The risk free rate is 5% and the Beta for Disney is 1.2. Lego requires

a market premium of 10%. What percent return does Disney need to earn to trigger a Lego investment?
Business
2 answers:
Lelechka [254]3 years ago
7 0

Answer:

⇒ 17%

Explanation:

To compute the require rate of return, we use the Capital Assets Pricing (CAPM) Model:

CAPM = Risk Free Rate + Beta (Market Risk Premium)

CAPM = Rf + β (Rm)

CAPM = 5% + 1.2(10%)

CAPM = 5% + 12%

CAPM = 17%

disa [49]3 years ago
5 0

Answer:

17%

Explanation:

This can be calculated using the Capital Asset Pricing Model which is given as under:

Required Return = Rf + Beta factor * (Market Risk Premium)

By putting the values, we have:

Required Return = 5% + 1.2 * 10% = 17%

Disney need to earn 17% return on investment to trigger a Lego investment.

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Which marketing philosophy could most help a company outperform its competitors in today's marketplace?
Vlad1618 [11]

The  marketing philosophy that  could most help a company outperform its competitors in today's marketplace is  Market Orientation.

<h3>What is Market Orientation?</h3>

Market orientation  can be described as the  approach to business  which help in the prioritizing as well as identifying the needs as well as the  desires of consumers and  brought about the  products and services that satisfy them.

Therefore, The  marketing philosophy that  could most help a company outperform its competitors in today's marketplace is  Market Orientation.

Learn more about Market Orientation at:

brainly.com/question/25754149

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7 0
2 years ago
Financial statements can be prepared _____. (select all that apply.) multiple select question.
marysya [2.9K]

Financial statements can be prepared : b. may be prepared more than once a year; c. may have a fiscal year end other than December 31.

<h3>What is financial statement?</h3>

Financial statement help to summarize the financial position of a business and it as well help to show  the day to day transaction of a company or day to day activities of a business at a particular period of time.

Financial statement of a company can be prepared more that once in a year and financial statement may tend to have fiscal year end that is other than last month of the year which is 31st December.

Therefore Financial statements can be prepared : b. may be prepared more than once a year; c. may have a fiscal year end other than December 31.

Learn more about financial statement here:brainly.com/question/21307159

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The complete question is:

Financial statements ______. (Select all that apply.)

a. must have a calendar year end of December 31

b. may be prepared more than once a year

c. may have a fiscal year end other than December 31

d. are prepared just once a year

8 0
2 years ago
All of the following are appropriate benchmarks for a state or local government to use as a basis for comparing performance exce
r-ruslan [8.4K]

Answer:

Federal agencies' financial information for a comparable time period.

Explanation:

Benchmarking can be regarded as management accounting innovation, which is been utilized in both the private and the public sectors for performance measurement as management. There are alot of success reported by public sector accounting researchers with the use of benchmarking, however there is

charged problems that still exist in implementing as well as using this management technique. The appropriate benchmarks for a state or local government to use as a basis for comparing performance are;

✓Socioeconomic and demographic trends of governments of similar types and size available from U.S. Census Bureau.

✓ A government's own operating results and financial position from prior years.

✓ International City/County Management Association's Financial Trend Monitoring System results for governments of similar types and size.

8 0
3 years ago
In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases,
nordsb [41]

Answer:

Option A is correct.

deficit; negative

Explanation:

In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases, this produces a tendency toward a trade <u>deficit </u>and <u>negaive</u> net capital outflow.

This corresponds to the concept of twin deficits where a budget deficit that results from increased government purchases, also results in current account deficit. Since trade deficit implies negative NX there is a negative NCO.

6 0
3 years ago
koukladina stop deleting my questions and answers. u call urself a moderator yet ur deleting actual questions and answers that a
monitta

Answer:

. tell them XDD

Explanation:

3 0
3 years ago
Read 2 more answers
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