Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%.What would be the fair return for $1 Dis
1 answer:
Answer:
13%
Explanation:
Please find attached a table containing further information needed to answer this question
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Expected rate of return = risk free + beta x market premium
Beta measures systemic risk
The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
4% + (1.5 x 6%) = 13%
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Answer:
Explanation:
The list can be seen below.
Sequ Therblig Therblig Description
ence symbol name
1 TE Transport empty
2 St select
3 G Grasp
4 TL Transport loaded
5 P Position
6 RL Release
7 TE Transport Empty
8 U Use
9 TE Transport empty
10 G Grasp
11 U Use
Answer:
Given:
Assets = $73M
Liabilities = $24M
To Find:
Value of equity
Explanation:
Total equity is what is left over after you subtract the value of all the liabilities of a company from the value of all of its assets.
Formula:
By substituting value of assets & liabilities in the formula we get: