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Tpy6a [65]
4 years ago
15

The Delta Co. owns retail stores that market home building supplies.​ Largo, Inc. builds single family homes in residential deve

lopments. Delta has a beta of 1.22 and Largo has a beta of 1.34. The riskminus free rate of return is 4 percent and the market risk premium is 6.5 percent. What should Delta use as their cost of equity if they decide to purchase some land and create a new residential​ community?
Business
1 answer:
cupoosta [38]4 years ago
4 0

Answer:

12.71%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4% + 1.34 × 6.5%

= 4% + 8.71%

= 12.71%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium and the same is used in the computation part. We ignored the bets of Delta

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Why do interest groups form political action committees (pacs)? pacs are formed to influence government policies. pacs are forme
schepotkina [342]
C) PAC<span>s are formed by interest groups to donate campaign funds and support political candidates.

Political Action Committees are committees organized to donate money for a candidate's campaign. Interest groups usually support certain candidates in return for policies that will benefit the people apart of that interest group. To support the candidate, they form or join PACs in order to donate money to get that candidate elected.</span><span />
5 0
3 years ago
A scale used to weigh produce at a market has markings every 0.1 kg. which measurement for the mass of a dozen apples is correct
AleksAgata [21]

A scale used to weigh produce at a market has markings every<u> 0.1 kg</u>

Measurement for the mass of a dozen apples is correctly reported for this scale<u> </u><u>1.87 </u><u>kg</u>

<u />

<h3>What is produced in the market?</h3>

Farm is a generalized term for many farm-produced crops, including fruits and vegetables (grains, oats, etc.

<h3>Why is it named produce?</h3>

Produce here refers to “fresh fruits and vegetables”. It's the noun understanding of that word, not the verb, and so its stress falls on the first syllable. Therefore the vegetables aisle is the place where such items are found.

To learn more about Measurement, refer

brainly.com/question/777464

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6 0
2 years ago
The advent of containerization has:
Firdavs [7]

Answer:

The correct answer is letter "E": significantly lowered the costs of shipping goods over long distances.

Explanation:

Containerization is the method of transporting goods in containers. These technique has become standard in freight transport having regulated the dimensions and maximum capacity of materials being moved. One of the big advantages containerization has provided is to transport different materials from different entities all together which implies sharing the costs of the same container, something that lowers the price of the transportation regardless if it is domestic or international.

7 0
3 years ago
kristen and harrison are equal partners in the kh partnership. the partners formed the partnership 5 years ago by contributing c
Sauron [17]

Answer: Harrison will acknowledge a gain equal to the difference between his basis and the distribution . This is because he receives only money in the distribution and the amount transcend his basis in KH. He further allot his entire basis in KH to the basis in the money received resulting in $0 basis in KH after the distribution.

∴ <em>The capital gain will be $6000 i.e. (50000 - 44000) and $0 basis.</em>

4 0
3 years ago
The opportunity cost of attending college is likely to be highest for a high school graduate _______A. who can immediately take
podryga [215]

Answer:

who can immediately take over the family business.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

For a student who chooses to go to college, his opportunity cost is the opportunity of running the family business he forgoed when he decided to go to college.

I hope my answer helps you

6 0
3 years ago
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