Answer:
Cost of equity = 14.74%
Explanation:
The capital asset pricing model is a risk-based model for estimating the return on a stock..
Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk.
Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM,
E(r)= Rf + β(Rm-Rf)
E(r)- cost of equity , Rf-risk-free rate , β= Beta, Rm= Return on market.
Using this model, we can work out the value of beta as follows:
β-1.2 Rf- 4.3%, Rm = 13%
E(r) = 4.3% + 1.2 × (13 - 4.3)%=14.74
%
Expected return = 14.74
%
Cost of equity = 14.74%
Answer:
The reason for information assortment is to get data which will help in settling on vital choices. In the ebb and flow case, Mayo facility needs to extend their global deals income by 100 percent and they need to do statistical surveying before making any further strides with respect to extension. To complete statistical surveying they are different techniques for information assortment
Secondary Data Collection
Inside Sources-Customer criticism will assist with deciding the client needs and deals record will assist with deciding the territories which needs improvement
Outside sources-Business diaries, Business magazines and web will help in getting the PESTEL (Political, Economic, Social, Technological, Ecological, Legal) examination for a nation which will help in drawing an appropriate technique for development
Primary Data Collection
Poll It's one of the most mainstream strategy for information assortment where survey is sent to the respondents and respondents should fill the poll and sent it back to the concerned division. It's a minimal effort strategy and gives the capacity to cover huge topographical region.
Telephonic Interviews - It's a less expensive choice than individual meeting technique and can be led by reaching tests on phone. It's a quicker method to contact enormous crowds and has high reaction rate.
Answer: Points of indifference
Explanation: Point of indifference can be defined as that level of EBIT at which two alternative financial plans have same amount of net income. It is used by managers as an evaluating tool, when it comes to choose between two cost structures which are alternative of one other.
In the given case, the company must have build point of indifference before launching of new product, and must have expected higher profits than normal beer.
Answer:
True.
Explanation:
With changing dimension of global market, where customer is considered as king in the market due to highly competitive market with homogenous goods and service are available in the market, where customer find it hard to distinguish between different goods and service, there is only one aspect which can differentiate the goods and service of one product to another is its quality and excellent customer service. Therefore, with the emerging market, it is essential for corporate to manage applying systems thinking, continuously improving quality, and providing excellent customer service.
Answer:
Net Income $12,400
Explanation:
Preparation of a corrected income statement.
GREENSTREAM INSURANCE Agency Income Statement For the Month Ended June 30
RevenuesService Revenue $42,000
[$40,000 +(20%* $10,000).]
Expenses:
Salaries and Wages Expense $17,300
($12,000 + $5,300)
Rent Expense 4,200
Depreciation Expense 3,300
($2,800 + $500)
Supplies Expense 2,800
($0 + $2,800)
Utilities Expense 1,200
($0 + $1,200)
Advertising Expense 800
Total expenses 29,600
Net Income $12,400
(42,000-29,600)
Therefore the net income for the corrected income statement will be $12,400
