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Paraphin [41]
3 years ago
8

Halestorm Corporation’s common stock has a beta of 1.20. Assume the risk-free rate is 4.5 percent and the expected return on the

market is 12 percent.What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %
Business
1 answer:
Lemur [1.5K]3 years ago
8 0

Answer:

Ke = Rf  + β(Rm – Rf)

Ke = 4.5 + 1.20(12-4.5)

Ke = 4.5 + 9

Ke = 13.5%

Explanation:

Cost of equity is equal to risk-free rate plus market risk premium. Market risk premium is beta multiplied by risk premium. Risk premium is market return minus risk-free rate.

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<u>B)</u><u> Organizational learning.</u>

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<h3><u>Organizational learning: What is it?</u></h3>

Organizational learning is the process through which a company develops over time by gaining information and applying that understanding to experience. The newly developed information is subsequently shared inside the company.

All businesses should prioritize organizational learning since internal knowledge production, transfer, and retention strengthen the organization as a whole.

There are three primary acts to take into account when examining the definition of organizational learning:

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4 0
2 years ago
Mott's used an advertising campaign to change the way consumers thought about its applesauce from a dinnertime side dish to a re
GrogVix [38]

Answer:

D) Repositioning

Explanation:

Perceptual mapping is the graphical representation of a product to explain the consumers' perception.

Product positioning is a method to explain the product's benefits to the targeted consumers.

Product differentiation is the process of distinguishing a product from other goods to force the customers to purchase.

Psychographics is a qualitative explanation based on the consumers' preferences.

Finally, <em>repositioning</em> is focusing on changing the customers' view engaged with the brand or product. It usually depicts a variety of a product's brand image. Since Mott's used an advertising method that changes the consumers' thought and perception, he used this <em>repositioning</em> strategy.

4 0
4 years ago
After a nonparty to the lawsuit allegedly told defendant that plaintiff was gay or bisexual, defendant relayed that information
Leto [7]

Answer:

Answer explained

Explanation:

The case is about the defamation claimed by plaintiff on the defendant on the basis of race remark of g a y or bisexual by third party information. This ultimately broken the relationship of two person.

I think that court should ultimately found that the accusations of homosexuality or bisexuality amounted to defamation per se because of the following reason:

  1. The Race Remark on the plaintiff by the defendant.
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4 0
3 years ago
All of the following are negative impacts of downsizing on organizational performance, except ________. a) less commitment to th
Zina [86]

Answer: e) lower wage costs

Explanation: Reduction in the size of the workforce always have an immediate positive result or outcome in the case of lower wage costs. Companies who tend to cut employees and don't restructure experience stress reactions among their employees that can lead to increased sickness absences, lower concentration on the job, and lower creativity. But reduction in wages tend to have positive effects on the company.

6 0
4 years ago
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Kevin has just finished paying off his loan. He was assessed a service charge of $422. He paid off the principal and the interes
Bumek [7]

Kevin pay in <u>finance charges</u> the amount of approximately $787.

The weekly <em>principal and interest </em>amount are $36. 13 for 4 years. Here, the principal amount paid is $7,150.

Therefore,<u> total interest plus the principal </u>amount paid in 4 years are:

36.13*52*4\\=7515.04.

Here,<u> 52 is the total week </u>in a year that is multiplied by <u>4 years</u> and payment in one week.

The<em> service charge</em> that Kevin intended to pay was $422, which makes the total payment as:

7515.04 + 422\\=7937.04

Hence, the <u>actual finance charge</u> would be computed as below:

7937.04 - 7150\\=787.04.

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3 0
3 years ago
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