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
Zolol [24]
3 years ago
5

The risk free rate currently have a return of 2.5% and the market risk premium is 5.77%. If a firm has a beta of 1.42, what is i

ts cost of equity
Business
1 answer:
Harrizon [31]3 years ago
4 0

Answer:

10.69%

Explanation:

Market risk premium = 5.77% or 0.0577

The beta = 1.42

Risk free rate = 2.5% or 0.025

Cost of equity = Risk free rate + Beta*Market risk premium

Cost of equity = 0.025 + 1.42*0.0577

Cost of equity = 0.025 + 0.081934

Cost of equity = 0.106934

Cost of equity = 10.69%

You might be interested in
Hope Springs makes the bottles of water, puts them into storage, and fills orders as they come in from inventory. This is an exa
svlad2 [7]

The type of  supply-chain strategy uses by Hope Spring to fills orders as they come in from inventory is called the pull supply-chain strategy.

The pull supply strategy is a manufacturing strategy that is influenced by consumer's demand because the demand are used to decide the level of procurement, production and distribution of product.

This strategy is very effective to prevent against wastage or over-production since the level of demand for the product determine the level of producing such product.

Therefore, in conclusion, the example of this is known as Pull supply-chain strategy.

Learn more about this here

<em>brainly.com/question/17830486</em>

3 0
3 years ago
All the following statements about residual value guarantees are correct about residual value guarantees, except that they:
lozanna [386]

Answer:

c. protect lessees against lessors who abuse leased assets.

Explanation:

The residual value guarantee may be defined as a guarantee that is made to the lessor where the value of an underlying asset will become at least some specified amount at the end of the lease. The guarantee is given by the party unrelated to a lessor.

The residual value guarantee provides to protect the lessor against the lessees who tries to abuse the leased assets. It does not protect the lessees against the lessors.

6 0
3 years ago
According to Krugman, which of the following best indicates the dangers of a strategic trade policy?
Gwar [14]

Answer:

C.Occurrence of a trade war

Explanation:

Strategic Trade Policy depicts policy adopted by certain countries to effect strategic interactions between firms in an international oligopoly. These include policy instruments (export subsidy, import tariff) by trying to shift profits from international to domestic firms.It is likely to develop their firms status in international markets & raise level of domestic welfare.

Many economists are skeptical about government's analytical capacity to determine optimal amount of intervention, as per theory application. If non optimal (over protection intervention) is used, it might lead to risk retaliation by other international firms & action reaction leads to occurrence of trade (commercial) war.

8 0
3 years ago
Approximately 2.2 million American workers are employed as customer service representatives.
bonufazy [111]

Answer:

the answer is true hope this helps

4 0
3 years ago
Read 2 more answers
Under this kind of program, cities demolished poor neighborhoods in city centers that occupied potentially valuable real estate;
german

The description explained depicts urban renewal.

Urban renewal were the policies that were out in place to enable housing authorities and local governments to demolish the neighborhoods that were considered to be blighted and poor and then replace such neighborhoods with real estate that were more valuable and were usually reserved for the white people.

Houses that were seen to be slums were destroyed and newer and fascinating neighborhood were constructed.

In conclusion, the correct option is C "urban renewal".

Read related link on:

brainly.com/question/12979681

8 0
3 years ago
Other questions:
  • Cazden Motors' stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price
    5·1 answer
  • Roderick sells restaurant supplies to eateries in western Kentucky. Because his clients do much of their own business at lunchti
    14·1 answer
  • Suppose a price-taking firm produces 400 units at its optimal output level. At that output rate, marginal cost is $200, average
    13·1 answer
  • Which of the following is a dimension of national culture?
    6·1 answer
  • Is this the first time you have taken from the company? Is this the first time you have created an overdraft?"" These are exampl
    9·1 answer
  • Bogart Company is considering two alternatives. Alternative A will have revenues of $160,000 and costs of $100,000. Alternative
    11·1 answer
  • In a balanced balance sheet, if liabilities are $2,000 and owner’s equity is $3,300, what must assets be ____?
    9·1 answer
  • In an attempt to increase sales during a lagging economy, Marvel has expanded its movie offerings to stimulate sales in its curr
    15·1 answer
  • The amount of the average investment for a proposed investment of $191,000 in a fixed asset with a useful life of 4 years, strai
    15·1 answer
  • Which product is an example of a consumer good?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!