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Drupady [299]
3 years ago
14

The difference between average annual returns on common stocks and returns on long-term government bonds is called a:___________

_
Business
1 answer:
Anestetic [448]3 years ago
3 0

Answer:

Market risk premium.

Explanation:

The difference between average annual returns on common stocks and returns on long-term government bonds is called a market risk premium.

Basically, market risk premium is typically determined by taking the slope of a security market line (SML); which is used by economist as a graphical representation of the capital asset pricing model (CAPM).

Market premium risk is used to determine the quantitative measure of the extra return demanded by market participants for the increased risk.

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jorge has a new job in an office. which of the following safety procedures will he most likely need to learn? a. how to handle b
maria [59]
B, how to exit safely in the event of a fire.
7 0
3 years ago
Neal Enterprises common stock is currently priced at $36.80 a share. The company is expected to pay $1.20 per share next month a
yanalaym [24]

Answer:

The cost of equity for Neal Enterprises is 5%

Explanation:

In order to calculate the cost of equity for Neal Enterprises we would have to make the following calculation:

cost of equity=((Do(1+g)/Po)+g

According to givn data we have the following:

Do=$1.20

Po=$36.80

g=2%

cost of equity=((1.20(1+0.02)/36.80-1.20)+0.02

cost of equity=((1.20(1+0.02)/35.60)+0.02

cost of equity=0.05

The cost of equity for Neal Enterprises is 5%

5 0
3 years ago
Four years ago, a popular sandwich company used to sell 12-inch roast beef subs for only $5.49, but the same product now sells a
Ainat [17]

Answer:

6.22%

Explanation:

Price of sandwich four years ago, Present value = $5.49

Price of sandwich, Future value = $6.99

It is given that the inflation has been assumed to be constant over these four years.

Inflation rate refers to the rate at which prices of the good increases from the previous level. In a simple language, if there is a rise in the price of the goods then this economy is experiencing a inflation.

Inflation rate:

=(\frac{Future\ value}{Present\ value}) ^{\frac{1}{n} } -1

=(\frac{6.99}{5.49}) ^{\frac{1}{4} } -1

= 1.0622487 - 1

= 0.0622487 or 6.22%

Therefore, the inflation rate is 6.22%

6 0
3 years ago
Steve is staying at a hotel while on business in Chicago, but he forgot to bring his ties. Who would he most likely turn to for
babymother [125]

Answer:

Steve

Explanation:

because he can get in contact with Steve while in the hotel

5 0
2 years ago
The advanced machinery used for limestone quarrying in a particular region leads to noise pollution and affects the hearing abil
Tanzania [10]

Answer:

A. Recent environmental research reveals that the dust from the limestone quarrying site has severely contaminated the water at a nearby lake.

Explanation:

The limestone production results in huge social effects like, noise pollution, soil pollution, which affects lives of people. And since the manufacturers or producers of limestone do not care about the social results of such production, they shall be liable to pay huge taxes.

As for this, the cause as stated in statement A is absolutely suitable.

Also the prices are more in this area even after so much of social destruction.

Accordingly high taxes as a penalty for such social destruction shall be charged.

4 0
3 years ago
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