Managerial economics can be applied to the non-profit organizations too because it help them in organizing, and controlling their resources.
Managerial economics is relevant to nonprofit organizations and government agencies as well as conventional, for-profit businesses.
<h3>What is
Managerial economics?</h3>
Managerial economics is an area of economics that is used for staffing, as well as controlling the resources of the organization.
With Managerial economics , one can carry out:
- planning
- directing
- organizing
In this case, Managerial economics is relevant to nonprofit organizations and government agencies as well as conventional, for-profit businesses.
Learn more about Managerial economics at:
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I think the answer is C but i could be wrong
Answer:
The multiple choices are:
9.98 percent
10.04 percent
10.79 percent
10.37 percent
10.45 percent
The third option of 10.79% is correct
Explanation:
The cost of equity according to Miller and Modgiliani capital asset pricing model is given below:
Ke=Rf+beta*(Mrp-Rf)
Rf is the risk free rate which is the return on government security is 2.7%
beta is 1.14
Mrp is the market risk premium is 7.1% which is given in the formula as (Mrp-Rf)
Ke=2.7%+1.14*7.1%
Ke=2.7%+8.09%
Ke=10.79%
Hence the correct option out of the options given above is the third option
It is expected that any shareholder that invests in the shares of Southern Home Cooking would get return of 10.79%