1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Leona [35]
3 years ago
8

Steady Company’s stock has a beta of 0.20. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate of

Steady Company’s cost of equity?
Business
1 answer:
777dan777 [17]3 years ago
5 0

Answer:

the estimation of the cost of equity is 7.4%

Explanation:

The computation of the estimation of the cost of equity is shown below:

Here we used the Capital Asset Pricing model formula i.e.

Cost of equity = Risk free rate + Beta × market risk premium

= 6% + 0.20 × 7%

= 6% + 1.4%

= 7.4%

Hence, the estimation of the cost of equity is 7.4%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

You might be interested in
There are 300 purely competitive farms in the local dairy market. of the 300 dairy farms, 298 have a cost structure that generat
Stells [14]

Answer:

The percentage rate of return for these 298 dairies is 6%

Explanation:

The percentage rate of return is calculated by dividing the profits by total investment, so the given information in the question is,

profits = $18

investment = $300

percentage rate of return = 18/300 = 0.06 = 6%

4 0
3 years ago
A monopolistically competitive market A. is imperfectly competitive, and all imperfectly competitive markets are monopolisticall
Gala2k [10]

Answer:

D. is imperfectly competitive, but not all imperfectly competitive markets are monopolistically competitive.

Explanation:

Monopolistic competition may be seen as a variety of competition that determine the characteristics of variety of industries that are familiar to consumers in their day-to-day lives. For instance, restaurants, hair salons, clothing, and consumer electronics are all monopolistic competitive market but not all imperfectly competitive markets are monopolistically competitive.

4 0
3 years ago
Read 2 more answers
Eva received $55,000 in compensation payments from JAZZ Corp. during 2018. Eva incurred $7,000 in business expenses relating to
larisa [96]

Answer:

A. $4200

B. $7,599.20

C. $6,782

D. $3,113

Explanation:see attached file

3 0
3 years ago
A small business owner has two employees but each employee has a separate cash register drawer. this situation can be viewed as
Tanzania [10]
When a small business owner has two employees but trusts each one to have their own cash register and handle the money of the business separately, that means that the owner supports the establishment of responsibility. One instance where this could happen is at a small deli or coffee shop.
5 0
3 years ago
Read 2 more answers
Which process is a feature of webmail?
Vikentia [17]
Webmail also known as email. Providers of webmail include Gmail, Outlook, Yahoo, AOL and much more. These providers allow companies and individuals to stay connected through web emailing. They allow for fast, effortless communication without the lag time of sending something through the post office mail. Webmail can be used to sell and order new products, provide customer service and communicate with those in other parts of the country/world. 
3 0
3 years ago
Other questions:
  • The following labor standards have been established for a particular product: Standard labor-hours per unit of output 10 hours S
    8·1 answer
  • Sameer does not smoke. Every day he walks past a billboard advertising Camel cigarettes. In class, the instructor was talking ab
    11·1 answer
  • You are not allowed to park within _____ feet of an intersection
    5·2 answers
  • On january 31, jean consulting company receives a bill for that month’s utilities in the amount of $500. jean sets it aside beca
    10·1 answer
  • At its $60 selling price, Atlantic Company has sales of $15,000, variable manufacturing costs of $4,000, fixed manufacturing cos
    11·1 answer
  • TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2.1 million and there are 130,00
    9·1 answer
  • Kathryn is shopping and needs to choose a combination of pants and shirts to buy. She has a total of $24 to spend. Each pair of
    7·1 answer
  • The bookkeeper for Mustang Company forgot to make the end-of-the-period adjustment for the interest expense that had accrued dur
    13·1 answer
  • What are some of the variable costs of running a flower shop?
    13·2 answers
  • A trademark is a device that can take almost any form as long as it is capable of identifying and distinguishing specific produc
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!