1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dexar [7]
3 years ago
14

The estimated beta for RDG is 0.74. The risk free rate of return is 4 percent and the Equity Risk Premium is 5 percent. What is

the required rate of return for RDG using the CAPM
Business
1 answer:
garri49 [273]3 years ago
3 0

Answer:

7.7%

Explanation:

Given :

Risk free rate of return = 4%

Risk premium = 5%

Estimated beta = 0.7

Using the CAPM relation :

The expected return = Risk free rate + (Risk premium * Estimated Beta)

Expected Return = 4% + (5% * 0.74)

Expected Return = 4% + 3.7%

Expected Return = 7.7%

You might be interested in
Which activity best demonstrates the trait of responsibility?
Dima020 [189]

Which activity best demonstrates the trait of responsibility?

A. demonstrating accountability for your actions

Out of the options, demonstrating accountability for your actions is the activity that best demonstrates the trait of responsibility. Your actions are of no ones responsibility besides you, you must understand the decisions you make. All of the other options are all important but not examples of accountability.  

8 0
3 years ago
A company purchased equipment and signed a 7-year installment loan at 9% annual interest. The annual payments equal $9,000. The
konstantin123 [22]

Answer:

<u>The present value of the loan is $45,297</u>

Explanation:

Instalment (A)= $9,000.00

PV factor (B)= 5.033

Present value of loan (A x B)

=$ 45,297

5 0
3 years ago
Training is the hidden cost associated with ERP implementations that is considered the most under-estimated.
algol [13]

Answer:

TRUE

Explanation:

Training is the hidden cost associated with ERP implementations that is considered the most under-estimated because at the initial stage of Enterprise resource planning software purchase, only the cost of purchase and installation is considered. However the software cannot be used without training the users on how to use the software.

Such training costs are sometimes as significant as 25% or more of the cost of the software and these costs are not included in the list price of the purchase of the ERP. Furthermore even when the training costs are estimated, they are often under-estimated as the number of users may increase with time as the organisation grows.

4 0
3 years ago
Splish Company sells a machine for $7,220 with a 12-month warranty agreement that requires the company to replace all defective
storchak [24]

Answer:

Explanation:

Had to use microsoft word in other to be able to arrange the solution properly. And i hope it helps you. Thank you

Download docx
3 0
3 years ago
When making an ethical decision, asking the questions "Would my family members and friends approve of this decision, and am I wi
xeze [42]

Answer:

practical Rule ✅

6 0
3 years ago
Other questions:
  • Juanita has a part-time job that pays 12 hour and works about 50 hours every month her withholding are social security 6.2 %medi
    7·1 answer
  • Wherry Furnishings uses job order costing. The company has a contract to deliver furniture to a hotel. The hotel has 60 basic ho
    15·1 answer
  • We only want to consider incremental earnings in the capital budgeting process. incremental earnings are the
    5·1 answer
  • Luke's Express Diner is the only place that sells burgers in a remote town in Arizona. As one of the​ long-time residents of the
    13·1 answer
  • Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate
    10·1 answer
  • Gullett Corporation had $30,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additiona
    10·1 answer
  • Creating a budget is about your wishes and hopes for what you want your income to be.
    9·1 answer
  • Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 32.50 Total fixe
    9·1 answer
  • Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observe
    12·1 answer
  • PRODUCT MIX DECISION, SINGLE CONSTRAINT
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!