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ad-work [718]
3 years ago
11

The risk-free rate of return is 2% and the expected return on the market portfolio is 8%. Oklahoma Oilco has a beta of 2.0 and a

standard deviation of returns of 26%. Oilco's marginal tax rate is 35%. Analysts expect Oilco's net income to grow by 12% per year for the next 5 years. Using the capital asset pricing model, what is Oklahoma Oilco's cost of common stock
Business
1 answer:
solmaris [256]3 years ago
3 0

Answer:

The multiple choices are as follows:

18.6%

14.0%

22.8%

25.0%

The second option is the correct answer,14%

Explanation:

The capital asset pricing asset model formula for computing a firm's cost of equity according to Miller and Modgiliani is given below:

Ke=Rf+Beta*(Mr-Rf)

Rf is the risk free of 2% which is the return expected from zero risk investment such as government treasury bills.

Beta is how risky an investment in a company is compared to similar businesses operating in similar business sector of the company given as 2.0

Mr is the expected return on market portfolio which 8%

Ke=2%+2*(8%-2%)

Ke=2%+2*(6%)

Ke=2%+12%=14%

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A ceiling fan that was purchased at a local hardware store and then is attached to the ceiling becomes _______ to the property.
Alona [7]

Answer:

The fixture, is the right answer.

Explanation:

The “fixture” is the correct answer because the term fixture refers to the piece of equipment or furniture that is fixed in the house or stays at a fixed position in the building. For example, there are many things in the house that are used only at its fixed position like the AC in the room. Once the AC is installed in the room then it is stationary, no one gonna move it from its original place. Likewise in the question, it is about the ceiling fan and the fan is also stationary as it stays at a fix position.

6 0
3 years ago
Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $6,400 and a fair mark
harina [27]

Answer:

Answer for the question  

Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $6,400 and a fair market value of $16,100. Kelsey will invest a building with a book value of $46,500 and a fair market value of $64,300.

What amount will be recorded to Sandra's capital account?

Is given in the attachment.

Explanation:

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3 years ago
Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the
polet [3.4K]

Answer:

D. Accounts ReceivableStanton, debit $20,000; Sales, credit $20,000, and Delivery Expense, debit $500; Cash, credit $500

Explanation:

The Sale transaction must be ;

Trade Receivable -  Stanton Company  $20,000 (debit)

Revenue $20,000 (credit)

<em>Recognise the Revenue and Asset -  Stanton Company</em>

Shipping Cost  $500 (debit)

Bank $500  (credit)

<em>Recognise the shipping cost and de-recognise the cash asset</em>

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3 years ago
Suppose that in the fictional country of Albireo the work-eligible population is 180 million, there are 110 million workers in t
maksim [4K]

Answer:

6.36 %

Explanation:

Unemployment means the state of being jobless but actively searching for work.  Unemployed people are part of the labor force.

In the case of Albireo, the work-eligible population is 180 million.

There are 110 million workers in the labor force, and employment level is 103 million. It means that those in the labor force and are not employed are 110 million - 103 million.

The number of unemployed people  = 7 million

The formula for calculating the rate of unemployment

= No. of unemployed people / No. in the labor force x 100

=7 million / 110 million x 100

=7/110 x 100

= 0.063 x 100

=6.36 %

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3 years ago
Broker rob believes he is being approached by a fair housing tester. what should rob do?
jeka57 [31]

Broker Rob appears to believe he is being contacted by a housing discrimination tester.

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<h3>What ought to be on display in each broker's office, Randy?</h3>

Broker Randy operates three branch offices in addition to his main brokerage site. A poster for equal housing opportunity A color picture of Randy and a license copy an indication that any commercials released by Randy's agent are not his responsibility.

Learn more about LGBTQ:

brainly.com/question/14561298

#SPJ4

4 0
2 years ago
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