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madreJ [45]
3 years ago
14

Using the capital asset pricing model (CAPM), Sun State determined that the required rate of return for a capital budgeting proj

ect it is evaluating is equal to 18 percent. If U.S. Treasury bonds yield 7 percent and the market risk premium is 5 percent, what is the project's beta coefficient?
Business
1 answer:
ANTONII [103]3 years ago
5 0

Answer:

2.2

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

18% = 7% + Beta × 5%

18% - 7% = Beta × 5%

11% = Beta × 5%

So, the beta would be

= 2.2

The (Market rate of return - Risk-free rate of return)  is also known as market risk premium and the same has applied.

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Answer:

The correct option is A

Explanation:

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3 years ago
Hilton Brews is a company producing instant mixes for all kinds of beverages. It notices that the market for tea has risen due t
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Answer:

Hilton Brews

The organizational growth strategy used by Hilton Brews is:

B. Diversification.

Explanation:

Diversification strategy is the corporate strategy that Hilton Brews has adopted to take advantage of the increased health benefits of teas by introducing a new line of organically grown and processed teas.  Diversification strategy is different from other corporate growth strategies which Hilton Brews could have adopted, including market expansion, market penetration, and product development.

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3 years ago
You are working on a brochure about your business. The type for the body text will be black and that for the section headings wi
OlgaM077 [116]

Answer:

The correct answer is Contrast and repetition.

Explanation:

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Repeat: the repetition is nothing more than identical identical forms that appear more than once in the design, that is to say, it would be a question of using the same element several times and distributed throughout the composition.

It is very important to resort to repetition especially when we are designing a graphic product that consists of several pages (catalog, magazine, etc.).

The repetition gives unity to the whole design, consistency and cohesion. Sometimes even on single page products, such as a diptych or triptych, it gives the feeling of continuity and that everything is "well tied". However, it should not be exceeded in its use. Repeating one or two graphic patterns is fine, but after three it would not be correct.

8 0
2 years ago
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Answer:

The correct answer is letter "D": Developing employees' skills .

Explanation:

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Thus, <em>Cleo is failing at believing by nodding her head she will be seen as a stronger manager. Stronger managers are those whose actions maximize the entity's profits, by maximizing workers' efficiency which implies developing their skills.</em>

4 0
3 years ago
How can we build up strong analytical skill discuss​
yan [13]

Answer:

hope help you

Explanation:

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Read more. An important part of being analytical involves being alert and remaining stimulated. ...

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Play brain games. ...

Learn something new. ...

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Join a debate club. ...

Take an exercise class. ...

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