Answer:
17.10%
Explanation:
The computation of the cost of equity is shown below:
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)
= 6.10% + 1.25 × 8.8%
= 6.10% + 11%
= 17.10%
The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same is applied.
All other information which is given is not relevant. Hence, ignored it
Answer:
D. society’s scarce resources are used to produce products that align with consumer preferences
Explanation:
Allocation efficiency is a point in the economy when the goods and services being produced are exactly what the customers or people of the economy want and this is a point of production when marginal social benefit of producing the good is equal to the producers marginal cost.
The person who receives financial protection from a life insurance plan is called a Beneficiary. The other side is the policy owner. he beneficiary is usually selected at the time of the policy inception by the owner of the contract.Beneficiary Order
, Beneficiary Changeability and Beneficiary Legal Type are the three types of Beneficiaries for Life Insurance.
Answer:
If I were to start a business, I will choose Sole Proprietorship.
Explanation:
Reasons why I will choose Sole Proprietorship
* I will be the sole owner and responsible for my business.
* All profits (and loss) will belong to me, means the more I work harder, the more return I (alone) will get.
* I can make all the decisions by myself, without the interference of any other person.
* I can expand my business as per my convenience and hard work, if I succeed I can eat all the fruits myself.
* I can grow my business as much I want.
* No one will be my boss, I will be setting my own working hours and work load etc.
Answer:
Net profit is more important to consider because it accounts for all the costs associated with making and selling the product and it includes the operating expenses that are excluded from gross profit. Gross profit is the profit made after deducting costs associated with making and selling its products, or the costs associated with providing its services.