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BARSIC [14]
3 years ago
15

Find the cost of equity for Consolidated Wheels and Axles Inc. using the information below: The firm's beta estimate is 0.9 The

10-year Treasury yield is 5.1% The (expected) market risk premium is 6.3% SHOW WORK HERE, HIGHLIGHT FINAL ANSWER IN YELLOW
Business
1 answer:
SpyIntel [72]3 years ago
8 0

Answer:

r or expected rate of return = 0.1077 or 10.77%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the market risk premium

r = 0.051 + 0.9 * 0.063

r or expected rate of return = 0.1077 or 10.77%

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A.) factory overhead
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finlep [7]

Answer:

Time-Share Estate

Explanation:

Definition:

A time-share estate is an illustration of a concept also known as fractional ownership. It is a structure that allows individuals to purchase the right of occupancy of a unit of real estate for a specific period.

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It is important to know also that the time-sharing industry is mostly available within the United States and it is a multi-billion dollar industry, meaning the time-sharing concept is popular in the United States.

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6 0
3 years ago
A higher required reserve ratio​ _________ the value of the simple deposit multiplier.
Sergio [31]
The answer to this question is decreases
<span>required reserve ratio refers to a certain amount of depositors' money that the banks need to have available on their hand.
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3 0
4 years ago
Which theory suggests that workers with more education earn higher wages because the extra schooling has given them additional s
san4es73 [151]

Answer:

The human capital theory

Explanation

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Investment in human capital can take the form of education or training.

The theory suggest that those that invest in human capital earn higher income

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7 0
3 years ago
Jorge Ortega has been using a 10 percent capacity​ cushion, servicing 60 customers an hour. There is a good deal of customer​con
-BARSIC- [3]

Answer:

B. 75

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= 60/(100% - 20%)

= 60/80%

= 75

Therefore, The new capacity requirement is 75.

7 0
4 years ago
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