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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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Answer:

The depreciation for the first year is $75,000

Explanation:

In working hours method the depreciation on a fixed asset is charged using the ratio of numbers of hours utilized by the asset in a period and lifetime working capacity in hours.

First, we need to calculate the Depreciable value

Depreciable value = Cost of Asset - Salvage value = $315,000 - $15,000 = $300,000

Depreciation = Depreciable value x Numbers of hours worked / Total working capacity of Asset = $300,000 x 25,000 / 100,000 = $75,000

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Answer and explanation:

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6 0
3 years ago
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Answer:

C) tracking.

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