Answer:
7.82%
Explanation:
In CAPM (capital asset pricing model), cost of equity = Risk free rate of return + Beta × (market rate of return – risk free rate of return)
T-bill is treasury bill backed up by governement, then cosidered is risk free rate.
Using the CAPM, the company's cost of equity = T-bills yielding 4.4% + beta 1.14 x (market risk premium 7.4% - T-bills yielding 4.4%)
= 4.4% +1.14*(7.4%-4.4%) = 7.82%
Answer:
Option A: Adding a predetermined percentage of the cost to the cost of the product
Explanation:
Price
This is simply refered to as money or other thing that ia used i exchanged for the right, ownership or use of a good or service.
Markup
This is commonly defined as thd difference between the cost price and the selling price of an goods or services that the business gives. it is the dollar amount listed or added to the cost of products to get the selling price. It is fondly called Gross Profit , Markup Margin or Margin, Gross Margin.
Standard Markup Pricing
This is the difference between selling price and cost. It is usually called as a percentage of cost.
The need for a markup is that business gather up expenses in order to be in a position to sell goods or services, and the markup covers these expenses and other factors
Answer:
$656.82
Explanation:
The calculation of required return is shown below:-
Face value (FV) = $1,000
Coupon rate = 12.00%
Number of compounding periods per year = 4
Interest per period (PMT) = $1,000 × 12.00 ÷ 4
= $30.00
Number of years to maturity = 10
Number of compounding periods till maturity (NPER) = Number of compounding periods per year × Number of years to maturity
= 40
Required rate of return = 20.00%
Required rate of return per period (RATE) = 5.00%
Bonds value = -PV(RATE,NPER,PMT,FV)
= $656.82
Therefore we applied this formula into excel.
Confidentiality is the answer you are looking for
