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
6

Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expect

ed return for Benson Industries?
Business
1 answer:
omeli [17]3 years ago
8 0

Answer:

Re = 10%

Explanation:

using the CAPM formula, the cost of equity is:

Re = risk free + (beta x market premium)

  • risk free = 4%
  • market premium = market return - risk free = 12% - 4% = 8%
  • beta = 0.75

Re = 4% + ((0.75 x 8%) = 10%

Since the beta is lower than 1, this stock is less volatile than the market, that is why the required rate of return is lower than the market return.

You might be interested in
Blue Spruce Company is considering two new projects, each requiring an equipment investment of $101,800. Each project will last
Lunna [17]

Answer:

50,400 44,400

0.79719

1.69005

5 0
2 years ago
Read 2 more answers
Josie recently took a job in the marketing department for Beachside Bagels and Bakery. After just a few days on the job, Josie l
Natalija [7]

Answer: Bureaucratic organization

Explanation:

A bureaucratic organization is an organization with a pyramidal shaped structure thereby decisions are made in an organized manner and there is high formality in its operations. It involves different layers of management from the top executives to managers till it gets to the lower staffs

Authority and decision making generally comes from the top till it gets to lower layers. Examples of bureaucratic organizations can be found in colleges and police departments.

6 0
3 years ago
Read 2 more answers
If the economy is experiencing an inflationary gap, the Fed should conduct ______ monetary policy to ______ aggregate demand.
Romashka [77]
The answer is Contractionary and Decrease
6 0
2 years ago
1. How is providing customer information to a law firm different than providing email addresses and symptoms to a pharmaceutical
Vaselesa [24]

Answer:

How is providing customer information to a law firm different than providing email addresses and symptoms to a pharmaceutical company?

Both are live saving professions, every detailed of their clients must be well documented in order to get the best services as far as life is concerned. A law firm must be sure of every details submitted in order to tackle anything that might affect such clients in court of law while a client must provide a detailed information as regards his/her health in order to get the right prescription for health service

Explanation:

4 0
3 years ago
15 points & Brainliest! please show your work first & explain why & how you got it. Alegbra 2 questions!
jasenka [17]
18a.

the y-intercept is the value of the function at x = 0.
so y-intercept is 5/8.

constant multiplier you can find by dividing a y-value by the previous y-value:

(y at x = 1) / (y at x = 0) is
(15 / 32) / (5 / 8)
but dividing by fraction is same as multiplying by reciprocal:

(15 / 32) · (8 / 5) ⇒ (15 · 8) / (32 · 5) ⇒ (3 · 1) / (4 · 1) = 3/4
(since 15 and 5 cancel to 3 and 1; 8 and 32 cancel to 1 and 4

the constant multiplier is 3/4 (you can confirm by repeat multiplying the y-values by 3/4 to get the next one)

18b.

y-intercept is 0.01

constant multplier:

(y at x = 1) / (y at x = 0) = 0.1 / 0.01 = 10

constant multiplier is 10

18c.

y = m/n(o/p)^x

y intercept is at x = 0:
y = m/n(o/p)^0
since anything to power of 0 is 1, we are left with
y = m/n

y-intercept is m/n.

The constant multiplier is o/p

i don't really have news papers or magazines around for that last bit, but if you could look for population data and such they can be exponential.



7 0
3 years ago
Other questions:
  • A factory produces gadgets that have two key parts. The factory can employ workers to attach those parts, or it can employ robot
    11·1 answer
  • Gains are: a) Inflows from selling a product or service to a customer b) Increases in equity resulting from transfers of assets
    14·1 answer
  • 21. Recent trends appear to be progressing in the direction of a more __________. A) culturally imperialistic world culture B) m
    5·1 answer
  • Identify the fixed path and variable path material handling equipment commonly found in supermarkets.
    11·1 answer
  • Baby jasmine wakes up every 2 hours to be fed, but she sleeps for about 18 to 20 hours a day. jasmine is:
    14·2 answers
  • Last year Lowell Inc. had a total assets turnover of 1.40 and an equity multiplier of 1.75. Its sales were $295,000 and its net
    15·1 answer
  • As a finance manager at AllSports Communication, Charlie worries about the firm's borrowing requirements for the upcoming year.
    14·1 answer
  • On which of the following goods or services might a tax increase be hardest to pass on to consumers? A) automatic car washes
    9·2 answers
  • Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers issued $65,000,000 of 10-year, 12% bonds a
    14·1 answer
  • True or false: the interval measure indicates how long a start-up company can operate until it needs more financing.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!