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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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3 years ago
One term is used to identify a collection of activities designed to gain access to personal and corporate information. The activ
tensa zangetsu [6.8K]

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Social engineering is simply the use of deceit in order to manipulate individuals so that they can give out personal and confidential information about themselves which will be used for fraud.

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8 0
3 years ago
Assuming an acid-test ratio of 1.0, how will the purchase of inventory with cash affect the ratio?
docker41 [41]

Answer:

C) Decrease the acid-test ratio

Explanation:

The quick ratio is also called acid test ratio. It is a liquidity ratio that measures level of liquid assets of a business.

That is the amount of cash or near cash assets it has to settle it's current debt.

Mathematically

Quick ratio = (Current assets - Inventory) ÷ Current liabilities

If cash (current asset) is used to buy Inventory. Cash will reduce and inventory will increase.

The value of (Current asset - Inventory) reduces.

As the numerator in the ratio reduces, the quick ratio also reduces.

6 0
3 years ago
When Larry purchased a Jet Ski personal watercraft for $4,999, he was also given free financing and three hours of free lessons
stellarik [79]

Answer:

Value added

Explanation:

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The value of this difference help to determine the profit on products.

Higher the value of add, higher will be the charges of product and higher will be the revenue collected.

4 0
3 years ago
3. Which of the following is not a characteristic of a service? (1 point)
Alona [7]

Answer:

marketability is not correct

Explanation:

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intangibility,

inseparability,

variability and.

perishability.

6 0
3 years ago
Read 2 more answers
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