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FromTheMoon [43]
3 years ago
8

A stock has an average expected return of 10.8 percent for the next year. The beta of the stock is 1.22. The T-Bill rate is 5% a

nd the T-Bond rate is 3.4 %. What is the market risk premium
Business
1 answer:
uranmaximum [27]3 years ago
7 0

Answer: 4.7%

Explanation:

Expected return is calculated as:

= Risk free return + Beta ( Market risk premium)

10.8% = 5% + (1.22 × Market risk premium)

10.8% - 5% = 1.22market risk premium

5.8%/1.22 = market risk premium

Market risk premium = 0.058/1.22

Market risk premium = 0.047

Market risk premium = 4.7%

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2.A company began 2019 with retained earnings of $23.45 million. During the year, it paid four quarterly dividends of 0.25 per s
Naily [24]

Answer: $23.63 million

Explanation:

First and foremost, we can calculate the quarterly common stockholder dividend which will be:

= $0.25 × 1 Million

= $0.25 million

Then, the annual dividend to the common stockholders will be:

= $0.25 million × 4

= $1 million

The quarterly preferred stockholder dividend will be calculated as:

= $0.50 × 0.50 Million

= $0.25 million

We would then multiply $0.25 million by 4 to get the annual dividend attributable to the preferred stockholders which will be:

= $0.25 million × 4

= $1 Million

Total Dividend would then be:

= Annual dividend to common stockholders + Annual dividend to preferred stockholder

= $1 Million + $1 Million

= $2 Million

The value of the retained earnings balance at the end of the year will then be:

= Retained Earnings at the beginning of the year + Net Income – Dividend

= $23.45 + $2.18 - $2.00

= $23.63 million

3 0
3 years ago
What are factors of production?
Reika [66]
C: all the physical tools and equipment used in the production process. That would be the answer
4 0
3 years ago
Jack is yelling at Samantha because she was late last week. Unfortunately, the whole office can hear. Now Samantha is not only u
lukranit [14]

Answer:

In this case, Jack's "human/interpersonal skills" failed. The skills that Jack is failing to use are important for "managers."

Explanation:

From the statement above, we can assume that Jack's position is superior to that of Samantha. He is, probably, the manager. However, he yelled at Samantha last week because she was late. In this case, Jack failed in his "human skills." This is also known as<em> "interpersonal skills,"</em> which is <u>a set of skills related to interacting effectively with other people.</u>

A manager with good interpersonal skills knows how to listen to his subordinates. In fact, he should be an <em>active listener,</em> which means he should be observant upon listening to other people's explanation. He should also provide advice or solve problems without yelling.

Thus, this explain the answers.

6 0
3 years ago
​We can show economic​ inefficiency: A. with points on the production possibilities frontier. B. with points inside and on the p
Deffense [45]

Answer:

The correct answer is option C.

Explanation:

The points on the production possibility curve show the efficient utilization of resources. The points below the curve show attainable but inefficient bundles. This is because the points below the curve imply that resources are not fully utilized and there are still some excessive resources left.

The points above the curve show those bundles that are unattainable. This is because these bundles need more resources to be achieved.

3 0
2 years ago
What are the problems the publishers face
Elina [12.6K]
Publishers face the economy’s choices in products they want/need and on how the ways of selling it and where to sell it
4 0
3 years ago
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