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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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Answer: Categorical

Explanation:

Categorical data refers to data that enables variables to be grouped into categories but in such a way that there is no ordering to the categories.

In this scenario, the cars will be grouped by their colors but these colors cannot be ordered by saying that red is higher than blue or yellow is higher than white. It is therefore Categorical data.

6 0
2 years ago
Please answer asap
n200080 [17]

Answer:

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3 years ago
Human Resource Management (HRM) takes a strategic approach in developing and maintaining a qualified workforce to gain a competi
madreJ [45]

Answer:

The statement is: True.

Explanation:

Human Resources (<em>HR</em>) is the department of an organization in charge of recruiting, selecting, and training employees so they can easily adapt to their work environment. Human Resource Management (<em>HRM</em>) is dedicated to allocating the potential of those employees in a way that they can be more productive to the point of creating a competitive advantage for the firm.

4 0
3 years ago
At the end of 2017, Carpenter Co. has accounts receivable of $778,100 and an allowance for doubtful accounts of $63,200. On Janu
KonstantinChe [14]

Answer:

Dr. Allowance for Doubtful Accounts  $7,400

Cr. Accounts Receivable                       $7,400

Explanation:

A write off eliminates the account receivable balance. It is recorded as the debit to Allowance for Doubtful Accounts because of its credit nature. It reduces the balance of the allowance use it for actual write off. On the other hand it credit the account receivable balance to reduce it as it is debit in nature.

7 0
3 years ago
Claudius took out an unsubsidized Stafford loan at the beginning of his six-year college career. The loan had a principal of $4,
Setler [38]

Answer:

$55.07

Explanation:

In this question we use the PMT formula that is shown in the attachment

Given that,  

Present value = $4,850

Future value or Face value = $0

Interest rate = 6.50% ÷ 12 = 0.54%

NPER = 10 years × 12 = 120 years

The formula is shown below:  

= PMT(RATE;NPER;-PV;FV;type)  

The present value come in negative  

So, after solving this, the monthly payment is $55.07

7 0
3 years ago
Read 2 more answers
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