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xxTIMURxx [149]
3 years ago
9

Smathers Corp. stock has a beta of 1.23. The market risk premium is 7.00 percent and the risk-free rate is 2.86 percent annually

. What is the company's cost of equity?
Business
1 answer:
Schach [20]3 years ago
6 0

Answer:

the company's cost of equity is 11.47 %.

Explanation:

The Company`s cost of equity is the return that is required by holders of Common Stocks.

The Cost can be determined using the <em>Capital Asset Pricing Model</em> (CAPM) as follows :

Cost of Equity = Return on Risk Free Rate + Beta × Return on Market Portfolio

                       = 2.86 % + 1.23 × 7.00 %

                       = 11.47 %.

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A buyer will receive a utilities bill for an estimated $400 at the end of the month. At closing, the seller has used an estimate
MrMuchimi

Answer:

Dr Seller Account $100

Cr Buyer Account      $100

Explanation:

The property sold on 15th of the month by Mr. A to Mr. B and the utility bill received later of this month would be split between Mr. A and Mr. B. The basis for the split of the utility bills would be the share that Mr. A utilized the facilities and in this scenario, it is $100. Hence the buyer Mr. B has receivable of $100 and the seller Mr. A has a liability payable of $100 amount.

Hence the buyer will debit the bill by $100 receivable and the Seller will debit the bill owed to buyer by $100.

3 0
3 years ago
Terri davis is planning to buy a new car. While on the internet she learned that the car has a base price of $16,007, options th
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I’m pretty sure that the answer is 17,621.66
5 0
3 years ago
In a growing number of jurisdictions, when a tenant moves out of leased premises before the term of the lease expires, the landl
Travka [436]

Answer:

To mitigate damages

Explanation:

When a a tenant breaches the terms of a real estate agreement, the landlord must come in to get another tenant to occupy the space.

He is avoiding a situation where the property is to be left unoccupied for a period of time.

Mitigating damages is a way of reducing further loss when one party breaches a contract.

In the given scenario if a tenant moves out of leased premises before the term of the lease expires, the landlord is required to make a reasonable attempt to lease the property to another party.

5 0
3 years ago
Your friend decides that he needs to receive a retirement payment of 70,000 dollars per year from a retirement fund that is proj
damaskus [11]

Answer:

Explanation:

This is an Ordinary Annuity question. You can solve this using a financial calculator. I'm using (TI BA II Plus)

N; duration = 20

I/Y ; interest rate per year = 8.5%

PMT ; recurring annual payment = 70,000

FV; Future value = 0 (In solving annuities, use 0 if not given)

then CPT PV = ?

PV = 662,433.563

Therefore, your friend needs to have $662,433.56

7 0
3 years ago
Proposed by Richard Hackman and Greg Oldham, _________ states that work has five core dimensions that impact employee satisfacti
jok3333 [9.3K]

According to Richard Hackman and Greg Oldham, Job characteristics explain the effects of five core dimensions of employee satisfaction.  

Explanation:

The research work of Richard Hackman and Greg Oldham mainly relates to the nature of the work with the objective of the working goals to fulfill until it reaches its saturating point. It can be only accomplished only with the mentioned features of the labor like types of skills, the importance of the task, choosing the apt task, self-governance, and the review of the overall performance of the work.

The features of the work are collectively referred to as job characteristics. It will have a positive effect unless the above-mentioned features of the labor are utilized in a proper mix to ensure full employee satisfaction.

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3 years ago
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