The cost of equity from retained earnings when using the CAPM approach for Scanlon Inc., would be 7 . 80%
<h3>How to find the cost of equity ?</h3>
The CAPM method stands for the Capital Asset Pricing Method and it allows for the cost of equity to be calculated by using the beta, the real risk free rate, and the market risk premum.
The cost of equity when using the CAPM method can be found by the formula:
Cost of equity = Real risk free rate + Beta x Market premium
The real risk free rate = 4 . 10 %
Beta = 0 . 70
Market risk premium = 5 . 25 %
The cost of equity is therefore:
Cost of equity = 4 . 10 % + 0 . 70 x 5 . 25 %
Cost of equity = 4 . 10 % + 3.675 %
Cost of equity = 7. 775 %
Cost of equity = 7 . 80%
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Answer:
$1.50 per pound if bananas
Ralph is acculturating its new employees through assimiliation, it is a way of or a progress in absorbing ideas or information and to be able to understand them. It is seen in the scenario above of how Ralph encourages the new hires to learn the norms and values of the orgaization, in which they should learn and understand. This is the process of assimilation.
Answer:
Increase spending and shift aggregate demand to the right in an effort to reach full employment output.
Explanation:
The goal of expansionary fiscal policy with respect to output is to reduce the problem of unemployment. In order to let this work, the government must increase its spending or Decrease the tax rate. This will make the Aggregate Demand Curve to the right which is a proof of increasing real Gross Domestic Product (GDP) as well as gradual reduction of unemployment.
