Answer: 0.9
Explanation:
The Expected Return on an investment can be calculated using the Dividend Discount Model as it is a key component in thw formula which is,
P = D1 / r - g
where,
D1 is the dividend paid next year
P is the current stock price
g is the growth rate
r is the expected return
With the given figures we have,
84 = 4.20 / r - 0.08
84 ( r - 0.08) = 4.20
r - 0.08 = 4.20/84
r = 4.20/84 + 0.08
r = 0.13
The Expected Return can be slotted into the CAPM formula to find the beta.
The CAPM formula calculates the Expected Return in the following manner,
Er = Rf + b( Rm - rF)
Where,
Er is expected return
Rf is the risk free rate
Rm is the market return
b is beta
Slotting in the figures gives,
0.13 = 0.04 + b( 0.14 - 0.04)
0.13 = 0.04 + b (0.1)
0.13 - 0.04 = 0.1b
b = 0.09/0.1
b = 0.9
Using the constant-growth DDM and the CAPM, the beta of the stock is 0.9
Answer: e. a, b and c
Explanation:
Opportunity costs are very important costs to look at because they help a company know if they are picking the best alternative available to them.
Out-of-pocket costs are also quite important because the company needs to know if there is a chance that they will have to pay for special features in the project that are not part of the original project but need to be paid for anyway as these monies come out of the cash reserve.
Incremental costs focus on the additional costs involved in a project and so are very important. When making a decision for processing a good further for instance, management needs to know if the incremental cost will be covered by the extra profit that will be gained.
Answer:
b. Cash received from customers at the time services were provided.
Explanation:
When a business recieves payment for goods or services rendered it has earned revenue.
Revenue is defined as the income that a business generates from normal business activities such as sales of goods and services.
It is also called sales turnover.
Answer:
b.$7,172.16 favorable
Explanation:
std rate $ 13.13
actual rate $ 12.20
actual hours 7,712
difference between actual and standart rate $0.93
As it is positive the variance is favorable as we spend less per hour than standard.
Now, we multiply by the actual hours to get the rate variance:
7,712 hours x $0.93 = $7,172.16
When the purpose of the communication is to the make the listener believes what the speaker says, the type of speech that would be most suitable is persuasive.
Thus, the answer to the question above is (B) persuasive, since the purpose of <em>entertaining speech</em> would be to create entertainment for the listeners while <em>informative speech’s</em> purpose would be to give information that the listeners do not yet know.
