Answer: 10%
Explanation:
The Capital Asset Pricing Model or CAPM for short can be used to calculate expected return in the following manner,
Expected return = Rf+B(Rm-Rf)
Rf = Risk free rate
B = Beta
Rm= Market return.
Plugging the figures in we have
Expected return = Rf+B(Rm-Rf)
= 0.04 + 1(0.1 - 0.04)
= 0.1
= 10%
Answer:
Explanation:
Net Income = 20m
Sales = 100m
Debt-equity ration = 40%
Asset turnover = 0.60
A)
Profit Margin = Net Income / Sales = $20 million / $100 million = 20%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.40 = 1.40
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.40 = 16.80%
B)
Debt-equity ratio = 60%
Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.60 = 1.60
Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.60 = 19.20%
As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)
Answer:
<u>Business ethics.</u>
Explanation:
Business ethics is the set of ethical and moral principles that exist in an organization to regulate its activities, actions and decisions that occur in the organization. The set of ethical values is directly determined by the organizational culture, and should be shared with all employees and organizational levels, as it is the business conduct of the company.
When well-established, corporate ethics ensure and motivate positive behavior, enhance a company's reputation and ensure its safety in the marketplace.
The statement above is true. When using interval method, it does not matter the number of responses, if the behavior occur in a given segment then the observer has to record it as a single event. For instance, in an English class of one hour, that is divided into six segments of ten minutes each. It does not matter the number of responses, if the behaviour occurs within the segment of ten minutes, then it has to be recorded as a single event.
Answer:
public education, fire protection, police services,
