Answer:
a. 9.98%
Explanation:
The computation of required rate of return is shown below:-
Required return= Risk - Free rate + Beta × (Market rate- Risk-free rate)
11.75% = 2.30% + 1.23 × (Market rate - 2.3%)
(11.75% - 2.30%) ÷ 1.23 = Market rate - 2.3%
Market rate = (11.75% - 2.30%) ÷ 1.23 + 2.3%
=9.98%
Therefore for computing the required rate of return on the market we simply applied the above formula.
Answer:
Explanation:
Last dividend = $1.85 (D0)
growth rate = 4% (g)
Current year dividend (D1) = 1.85*(1+0.04) = $1.924
r = 12%
Current price = D1/(r-g) = 1.924/(0.12-0.04) = 24.05
Price in 3 years = D4/(r-g) = D0*(1+g)^4/(r-g) = 1.85*1.04^4/0.08 = $27.0529792
Price in 14 years = D14/(r-g) = D0*(1+g)^15/(r-g) = 1.85*1.04^15/0.08 = $41.647
Answer:
a.raises; lowers; raises
Explanation:
An expansionary monetary policy is usually undertaken by the Central bank to increase money supply.
When money supply is increased, output increases and real GDP rises.
The rise in money supply which causes output to increase would lead to an increase in demand for Labour. This would reduce unemployment.
Because of rise of money supply, the supply of money in the economy would rise and the price level would rise.
I hope my answer helps you.
Answer:
3.46 m/s
Explanation:
This is actually a Physics question and not a Business question.
According to the property of conservation of momentum, the speed of the Mazda before the collision multiplied by the mass of the Mazda must equal the speed after the collision multiplied by the mass of both cars:
The post-collision speed of the two entangled cars is 3.46 m/s.
