Answer and Explanation:
The computation is shown below:
As we know that
According to the Capital Asset Pricing Model (CAPM) formula
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return) 
And, the market rate of return - Risk-free rate of return is also known as the market risk premium
As we can see that the Alcoa contains high beta as compared to Hormel Foods so the Alcoa has a higher equity cost of capital
And, the higher rate is 
= (Excess return of the market) × (Alcoa beta - Hormel foods beta)
= (3%) × (1.85 - 0.39)
= 3% × 1.46
= 4.38%
 
        
             
        
        
        
Answer:
IRR is greater than required return by 17.38 - 16.8 % = 0.58 %
so project will accept
Explanation:
given data
initial cost = $38,000
cash inflows year 1 =  $12,300
cash inflows year 2= $24,200
cash inflows year 3 = $16,100 
rate of return = 16.8 %
solution
we consider here IRR is = x so
present value of inflows is equal to present value of outflows   .............1
we can say that it as 
initial cost = present value
3800 = 
solve it we get 
x = 17.38% 
here IRR is greater than required return by 17.38 - 16.8 % = 0.58 %
so project will accept
 
        
             
        
        
        
Answer:
The money supply increases by $3300.
Explanation:
Money multiplier = 1/reserve ratio
= 1/0.4
= 2.5
the change in the money supply = deposit *multiplier -deposit
= $2,200*2.5 - $2,200  
= $3300
Therefore, The money supply increases by $3300.
 
        
             
        
        
        
In a split offering, we see that a) shares are issued from the corporation and sold by existing shareholders. 
<h3>What is a split offering?</h3>
A split offering is a type of stock issuance that involves the issuing of new stock and existing stock that it is in the market already. This is why it is called a split offering - one side of the offering comes from the corporation, and the other comes from the existing shareholders. 
With a split offering, the seller will be existing shareholders and not the company. This means that the corporation that issues the shares, will then cooperate with existing shareholders who will then be the ones to sell the shares. 
Find out more on stock offerings at brainly.com/question/13049425.
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Answer:
c. it makes prices rise
Explanation:
Inflation describes a situation where there is a general increase in prices in the country. Inflation is directly linked to economic growth. A high growth rate results in high inflation. 
Inflation causes prices to rise, reducing the purchasing power of money. A reduction in purchasing power means a unit of money will buy fewer items than it did previously. The government puts in measures to counter inflation to stabilize prices and prevent erosion of purchasing power. 
Low inflation indicates slow economic growth, low employment, and a reduction in prices.