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zvonat [6]
3 years ago
8

Assume that you are given the following historical returns for the Market and Security J. Also assume that the expected risk-fre

e rate for the coming year is 4.0 percent, while the expected market risk premium is 16.0 percent. Given this information, determine the required rate of return for Security J for the coming year.
Business
1 answer:
Arisa [49]3 years ago
8 0

Answer:

the answer is 7%

Explanation:

If we estimate the beta as a proportion between  the expected risk -free rate  and the expected market value,  we obtain 4%/16%=25%

b=0.25      r=?

r_m=0.16

r_ref=0.04

then we use the CAPM Model

r=r_ref +b(r_m-r_ref)

r= 0.04+0.25*(0.16-0.04)=0.07

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Norfolk sporting goods purchases merchandise with a catalog list price of $30,000. the retailer receives a 30% trade discount an
Step2247 [10]

The answer is $20,580.

$30,000 x 0.30=$9,000

$30,000-$9,000=$21,000

$21,000 x 0.02=$420

$21,000-$420=$20580

8 0
3 years ago
The following information is available for a company's utility cost the estimated variable cost per machine hour is:_____.
Alenkasestr [34]

Answer:

Variable cost per unit= $2.53

Explanation:

<u>Giving the following information:</u>

Month Machine hours Utility cost

January 950 $5,500

February 1,850 $7,000

March 2,500 $8,100

April 650 $3,420

<u>To calculate the unitary cost per machine hour, we need to use the high-low method:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (8,100 - 3,420) / (2,500 - 650)

Variable cost per unit= $2.53

8 0
3 years ago
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maw [93]

Answer:

CCCCCCCCCCCCCCCCCC

Explanation:

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5 0
3 years ago
Which of the following operations decisions is not a long-term strategic decision?
IrinaK [193]

Answer:

The answer is Work shift scheduling.

Work shift scheduling is done on either a daily or a weekly/monthly basis. In addition, work has to be scheduled whenever a strategic change has been made or whenever an outside effect influences the company processes.

The second answer is Top management involvement. Competitive pricing, fast and reliable delivery along with adjusting to the changing demand of customers are all competitive strategic dimensions yet Top management do not need to involve in every process of a company. They do formulate the policies, yet there is no universal rule for them to participate in everything.

Explanation:

6 0
3 years ago
5. Explain what would happen to interest rates if a new process was developed that allowed automobiles to run off oil that was f
guapka [62]

Answer:

When the new processes are developed for manufacturing it results in interest rate fluctuations. However, operational costs would become uncertain which would further affect the total production costs. Thus the value of an investment would be impacted. Automobile demand from the customers will also get affected. thus, fall in interest rate will have a significant and positive affect on the sale of automobiles as well as revenue.

8 0
3 years ago
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