Dont answer just for points please , ill give you a brailist if i like the answer

The Rhaegel Corporation’s common stock has a beta of 1.7. If the risk-free rate is 5.7 percent and the expected return on the ma

Nataliya [291]

Answer:

the cost of equity capital as per CAPM is 14.71%

Explanation:

The computation of the cost of equity capital as per CAPM is shown below:

As we know that

= Risk free rate of return + beta × (market rate of return - risk free rate of return)

= 5.7% + 1.7 × (11% - 5.7%)

= 5.7%+ 1.7 × 5.3%

= 5.7% + 9.01%

= 14.71%

hence, the cost of equity capital as per CAPM is 14.71%

The same is relevant

4 0

3 years ago

In the event that Only1Corp. obtains control of all the natural gas producers in the US, it would most likely Group of answer ch

Effectus [21]

Group of Answers:

a. raise prices, cut production, and realize positive economic profits

b. have a patent giving it exclusive legal rights to make, use, and sell for a limited time.

c. have legal protection to prevent copying its methods of production for commercial use

d. acquire rights for its investors to produce and sell their product

Answer:

Only1Corp

a. raise prices, cut production, and realize positive economic profits

Explanation:

Only1Corp has by the above move become a monopoly by acquiring all the natural gas producers in the US and now has near or total control of the natural gas production. It will display the characteristics of a monopoly, especially that of a price maker. Its position in the marketplace will become unchallenged if there are no importers of natural gas to compete with it in the marketplace. However, it must be noted that monopolies are illegal in the US unless they are government-created monopolies.

3 0

3 years ago

Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.

azamat

Answer:

Predetermined overhead rate = $ 9.75 per direct labor hours

Overhead applied = $897,000

Explanation:

Given:

Budgeted Overhead cost = $975,000

Actual Overhead cost = $950,000

Budgeted Machine hours = 50,000

Actual Machine hours = 45,000

Budgeted Direct labor hours = 100,000

Actual Direct labor hours = 92,000

Computation:

(a) Predetermined overhead rate.

Predetermined overhead rate = budgeted overhead cost / budgeted direct labor hours

Predetermined overhead rate = $975,000 / 100,000

Predetermined overhead rate = $ 9.75 per direct labor hours

(b) Amount of overhead applied for the year.

Overhead applied = Actual hours × Predetermined overhead rate

Overhead applied = 92000 × $9.75

Overhead applied = $897,000

7 0

4 years ago

I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is

Nitella [24]

Answer:

$15,000

Explanation:

Value of a perpetuality = cash flow / r

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

4 + 0 (10 - 4) = 4

1,000/ 0.04 = 25,000

4 + 1 (10 - 4) = 10

1000 / 0.1 = 10,000

25,000 - 10,000 = 15,000

8 0

3 years ago

A ________ is a formal document that states the goals of the business as well as the intended process for reaching those goals.

Digiron [165]

A business plan is a formal document that states the goals of the business as well as the intended process for reaching those goals. This provides a market analysis. This basically provides the investors an idea of how the company will make use of its money and conduct business.

3 0

4 years ago

Dont answer just for points please , ill give you a brailist if i like the answer​

Dont answer just for points please , ill give you a brailist if i like the answer