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Nastasia [14]
3 years ago
9

The stock in Pal-Maine Foods has a beta of .85. The expected return on the market is 11.50 percent and the risk-free rate is 2.8

5 percent. What is the required return on the company's stock?
Business
1 answer:
algol [13]3 years ago
6 0

Answer:

the required rate of return is 10.20%

Explanation:

The computation of the required rate of return is shown below;

We know that

= risk free rate of return + beta × (market rate of return - risk free rate of return)

= 2.85% + 0.85 × (11.50% - 2.85%)

= 2.85% + 7.3525%

= 10.20%

hence, the required rate of return is 10.20%

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It would be B a sublessor

8 0
2 years ago
What did Apple and other publishers seek to do?
pantera1 [17]

Answer:

they wanted to eliminate prices

Explanation:

hope this helped :)

3 0
2 years ago
Suppose the demand for Digital Video Recorders (DVRs) is given by Q = 250 - .25p + 4pc, where Q is the quantity of DVRs demanded
PIT_PIT [208]

The question is incomplete. Here is the complete question

Suppose the demand for Digital Video Recorders (DVRs) is given by Q = 250 - .25p + 4pc, where Q is the quantity of DVRs demanded (in 1000s), p is the price of a DVR, and pc is the price of cable television. How much does the quantity demanded for DVRs change if the p rises by $40? A) drops by 10,000 DVRs B) increases by 16,000 DVRs C) drops by 2,500 DVRs D) increases by 4,000

Answer:

Drops by 10,000 DVRs

Explanation:

The demand for digital video recorders is expressed by

Q= 250- .25p+4pc

Where

Q represents the quantity demanded by the customers

P represents the price of DVR

pc represents the price of cable television

Since the factor of p in the expression above is negative, this implies that the quantity of DVR demanded in the market will reduce

If the price of DVR increase by $40, then the quantity demanded will reduce by

= 0.25×40×1000

= 10×1000

= 10,000 units

Hence the quantity of DVRs drops by 10,000 DVRs if the price is increased to $40

3 0
3 years ago
When you are ready to commit to a topic, the first strategy is to____________.
adelina 88 [10]

Answer: c. identify an area of knowledge or an issue that deeply interests you. conduct a thorough, objective research.

Explanation:

You would write better on any subject where you have an area of knowledge or that which interests you greatly, this is due to the fact that your knowledge gives you an added advantage in writing the subject, you would have had an underlying foundational knowledge which you just need to build on by research and having an objective for the topic. So, having an interest and knowledge in a topic is the first strategy to note when writing a topic.

7 0
3 years ago
A stock is expected to return 8% in a normal economy, 12% if the economy booms, and lose 3% if the economy moves into a recessio
JulijaS [17]

Answer: 6.91%

Explanation:

Expected return = Sum of (Probability of state of economy * Return given state of economy)

= (56% * 8%) + (12% * 25%) + (19% * -3%)

= 4.48% + 3% - 0.57%

= 6.91%

8 0
3 years ago
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