Answer:
Cost of equity = 11.7%
Explanation:
<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.</em>
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate,-4%, β= Beta-1.10, (Rm-Rf) = 7% ,Ke = cost of equity
Using this model,
Ke=4% + 1.10×7%
= 11.7 %
Cost of equity = 11.7%
Answer:
Indirect and fixed
Explanation:
Indirect costs are those cost which cannot be directly attributable to any product.
Fixed costs are those which remains the same in the period whatever the level of activity (production, sales etc.) is. It does not vary with the change in the activity level.
Supervisor salaries cannot be traceable directly to any specific product, so it is considered as the indirect cost. As the Salaries are fixed payments made on monthly or annually basis, So it is also classified as the fixed cost.
The bond's price is $2,130.51, A bond with 16 years to maturity and a semiannual coupon rate of 6.04 percent has a current yield of 5.67 percent. the bond's par value is $2,000.
Current yield = annual Payment/ Market Price
Market Price = Annual Payment Current Yield
= (2000*6.04%)/ 0.0567
= 2130.511464
= $2,130.51
Par fee, in finance and accounting, means said fee or face cost. From this come the expressions at par, over par and under par. What does $1 par price mean?
Key Takeaways
A par price for a stock is its in-step with-share fee assigned by the organization that issues it and is frequently set at a very low amount together with one cent. A no-par inventory is issued without any unique minimal price. Neither form has any relevance to the stock's real cost in the markets.
Learn more about par value here:-brainly.com/question/20813161
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Answer:
$61,445.20
Explanation:
we need to determine the present value of an annuity, and the simplest to determine this is by using annuity factors:
number of payments = 20
interest rate = 7%
annuity payment = $5,800
present value of the annuity = $5,800 x 10.594 (PV factor, 7%, n= 20) = $61,445.20
if we do not have an annuity table at hand (or in the internet), the formula used to calculate the annuity factor is:
annuity factor = [1 - 1/(1 + r)ⁿ] / r
Answer:
Sensory retailing.
Explanation:
If a gourmet cooking store encourages customers to sample fresh baked apple pie in order to encourage purchases of pie pans and rolling pins they are engaging in sensory retailing.
In marketing, sensory retailing can be defined as a strategic process which involves the creation of an atmosphere that attracts potential customers and has a positive influence or effect on them.
Generally, sensory retailing involves the process of appealing to the customer's taste, smell, sight, tactile, and olfactory senses, thus, affecting their perception, judgment and behavior positively.
<em>Hence, when properly designed, harnessed and applied, it boost purchasing behaviors, increases sales revenues, improve customer loyalty, and enhances good vibes or mood among end consumers</em>.
