Answer:
The firm's cost of common stock is 13%
Explanation:
Use the following CAPM formula to calculate the cost of common stock
Cost of common stock = Risk free rate + beta x ( Market return - Risk free rate )
Where
Risk free rate = 5.5%
Market return = 11.50%
Beta = 1.25
Placing values in the formula
Cost of common stock = 5.5% + 1.25 x ( 11.50% - 5.5% )
Cost of common stock = 13%
Answer:
A. struggle to get a foot in the door
Explanation:
The example of pen was used to define the fact that most salespeople start off by asking or telling the usual instead of analysing the situation and determining the right questions to be asked from the customer which ultimately leads to most of sales individuals to struggle.
Like in this case where a salesperson is given a pen, he would start by saying that he has a pen to sell with multiple colours, they are affordable and lightweight. These questions are too generic and may not interest the customer. Instead to sale better one must ask intelligent questions that will be relevant for the customer in order to pitch them the right kind of product.
Answer:
An increase in sale for 90 units, will increase the net income for 1$,170
Explanation:
<em>We are not given with any information of additional cost or special price for this units, so we use the current values.</em>
So we simply multiply the contribution per unit by the increase in sale.
Contribution Margin x Δ sales = Δ income
13 x 90 = 1,170
Each unit contributes with 13 additional income, there are 90 additional units
Total income added 1,170
Answer: The correct option is C.
Explanation: Inflation is the measure of the rate at which the price level of goods and services increases over a period of time in an economy.
Inflation indicates the decrease in purchasing power of the currency of a nation.
Therefore if the euro experiences inflation, this would lead to a decrease in purchasing power of the currency. Hence, the more stable currency which is the dollar, that was initially equal to the euro, will now surpass the euro in value and purchasing power.
This will lead to the ability to procure more goods and services from the E.U. using the dollar.
Answer:
10%
Explanation:
Rate of Return = (Sale Price + Net Income Received - Purchase Price) / Purchase Price
Rate of Return = ($85.70 + ($2.3 + $3 - $3) - $80) / $80
Rate of Return = ($85.70 + $2.3 - $80) / $80
Rate of Return = $8 / $80
Rate of Return = 0.1
Rate of Return = 10%
So, the net rate of return from this investment is 10%
