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Eva8 [605]
3 years ago
12

The stock is currently selling for $15.25 per share, and its noncallable $1,000.00 par value, 20-year, 9.00% bonds with semiannu

al payments are selling for $930.41. The beta is 1.22, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 25%. Refer to Exhibit 10.1. Based on the CAPM, what is the firm's cost of equity?
Business
1 answer:
ANTONII [103]3 years ago
7 0

Answer:

12.8%

Explanation:

Ra=Rf+(Rm-Rf)*Ba

Ra=?

Rf=5.5%

Rm=11.5%

Ba=1.22

Ra=5.5%+(11.5%-5.5%)*1.22

Ra=12.8%

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The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other orga
liubo4ka [24]

Management is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources. Management is used to control its employees to maximize its effort to obtain its objective using the available resources to meet the customer demand.

<span> </span>

7 0
3 years ago
Using too few balanced scorecard​ measures: A. will not balance desired outcomes with performance drivers of those outcomes. B.
mezya [45]

Answer:

A. will not balance desired outcomes with performance drivers of those outcomes.

Explanation:

The balance score card is the score card that reflects the performance level from which the organisation will be able to take the actions, decisions appropriately.

If the company uses the few balanced scorecard​ that would leads to not balancing the desired outcomes with its performance drivers that means they are not able to matched with each other outcomes or results                    

8 0
3 years ago
The Young Americans for Freedom: Question 9 options: believed that the free market assured personal freedom. worked in tandem wi
katrin2010 [14]

Answer:

The correct option is<em> "A." which is  "believed that the free market assured personal freedom."</em>

The Young Americans for Freedom was based on the<em> Sharon Statement.</em>

<em></em>

Explanation:

<em>The Young Americans for Freedom (YAF) </em><em>is an ideologically conservative youth activism organization that was founded in 1960 as a coalition between traditional conservatives and libertarians on American college campuses.</em>

<em />

<em>The summary of the Core Principles of the Sharon Statement are:</em>

  • <em>    Individual freedom and the right of governing originate with God;</em>
  • <em>    Political freedom is impossible without economic freedom;</em>
  • <em>    Limited government and strict interpretation of the Constitution;</em>
  • <em>    The free market system is preferable over all others;</em>
  • <em>    Communism must be defeated, not contained.</em>
8 0
2 years ago
Read 2 more answers
1. The Department of Justice filed a lawsuit against Microsoft claiming it was engaging in unfair practices by​ ____________.
Oksi-84 [34.3K]

Answer:

1. B. monopolizing the market by bundling its operating system with its Internet Explorer browser.

2. A. network externalities.

Explanation:

Lawsuit was filled againts Microsoft claiming that it was engaging in unfair trade practices by (B) monopolizing the market bu bundling its operating system with its internet explorer browser.

They argue that modern software can gain monopoly status and establish a barrier to entry through (A) network externalities.

5 0
3 years ago
The New Fund had average daily assets of $2.2 billion in the past year. If New Fund’s expense ratio was 1.1% and the management
Marizza181 [45]

Answer: $15,400,000

Explanation:

The fees paid to the fund's investment managers during the year would simply be the Management fee of 0.7% of the average daily assets. The expense ratio refers to other adminstrative expenses.

= 2,200,000,000 * 0.7%

= $15,400,000

8 0
3 years ago
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