Points represent

Cooley company's stock has a beta of 1.32, the risk-free rate is 4.25%, and the market risk premium is 5.50%. what is the firm's

balu736 [363]

11.51%

The required rate of return = risk-free rate + Beta * (market risk premium)

Here, we multiply the beta of 1.32 times the market risk premium of 5.50%, then add the risk-free rate of 4.25% to get the required rate of return, or 11.51%.

6 0

3 years ago

The bank received and accepted a payment worth $7,200 from a customer on the company’s behalf. Which journal entry adjustment sh

krok68 [10]

Answer:

C. Accounts receivable will be credited by $7,200

Explanation:

Accounts receivable are expected payments from customers. They exist because businesses sell goods and services to customers on credit. Account receivables are asset accounts. An increase in assets accounts is debited, and a decrease is credited.

If the banks received payment from a customer, it means a customer has paid for goods sold on credit. Accounts receivable have decreased ( to be credited), but cash in the bank has increased.

5 0

3 years ago

MySpace is a social network that is targeted primarily to people under the age of 25 years old. In 2005, when MySpace was the le

mrs_skeptik [129]

Answer:

Social

Explanation:

In this secanrio social forces affected MySpace performance and they were eventually sold at $38 million from an initial value of $580 million.

Social factors affect consumer behaviour, through influence of a person or group on another through culture social class, reference groups and family.

My Space targeted only people below 25 years, so this means they cannot interact with people in other age groups. They lost appeal for MySpace as a result.

6 0

3 years ago

During 2008 in the United States, consumer confidence fell significantly. Which of the following will occur as a result of this

Anestetic [448]

Answer:

The correct answer is option D.

Explanation:

A reduction in consumer confidence will cause the IS curve to move leftwards. The IS curve is short for the investment savings curve. It shows the equilibrium in the goods market. It shows different combinations of interest rates and income where the goods market is in equilibrium.

A change in consumer spending causes a shift in the IS curve. A reduction in consumer confidence will cause consumers to spend less. This reduction in consumer spending will further cause the IS curve to shift to the left.

6 0

4 years ago

Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution for

-Dominant- [34]

Answer:

The financial advantage of discontinuing the Linens Department is $359,980

Explanation:

If Linens Department is discontinued, there is only Hardware Department left. The new sales, costs and operating income will be:

Sales = 3,180,000 x (1 -18%) = $2,607,600 ( 18% drop in sales of Hardware given Linens discontinuity)

Variable cost = 2,607,600 x ( 841,000 / 3,180,000) = $689,620.

Fixed cost = Fixed cost originally allocated to Hardware + Fixed cost further allocated to Hardware due to Linen's discontinuity = 1,420,000 + 379,000 = $1,799,000.

Operating income = 2,607,600 - 689,620 - 1,799,000 = $118,980.

=> Difference between discontinuity of Linen Department and continuity of Linen Department = 118,980 - (-241,000) = $359,980.

7 0

3 years ago