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disa [49]
2 years ago
9

Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. I am buying a firm with a

n expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is .5, when in fact the beta is really 1, how much more will I offer for the firm than it is truly worth?
Business
1 answer:
algol [13]2 years ago
5 0
This wouldn’t by chance have multiple choice options would it?
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A city government purchased a new fire truck in Year 1 for $270,000. The city incurred an additional $ 30,000 in transportation
erica [24]

Answer:

correct option is  $0

Explanation:

given data

purchased  truck = $270,000

transportation and calibration costs = $30,000

life = 20 years

financed period = 15 year

solution

we know here that some expenses like insurance and depreciation etc is allocated by systematic and the rational procedure for some period

so that during that period related asset is expected to provide the benefit

and acquisition of capital asset is not record as expenses

we know  appropriate property and  plant or the equipment assets account are debit on  purchases

so that Depreciation expenses are recorded to reflect the allocation of costs of the asset to operation over service life of assets

so here correct option is  $0

6 0
3 years ago
A rectangular floor measures $a$ feet by $b$ feet, where $a$ and $b$ are positive integers with $b > a$. An artist paints a r
DENIUS [597]

The number of possibilities that are there for the ordered pair is 2.

<h3>Calculation and Parameters
</h3>

Because the unpainted part of the floor covers 1/2 of the area, then the painted rectangle covers 1/2 of the area as well.

Given that the border width is 1 foot, the dimensions of the rectangle are a-2 by b-2.

Making an equation:

ab= 2((a-2)(b-2))

ab= 2ab-4a-4b+8

ab-4a-4b+8=0

If we apply Simon's Favorite Factoring Trick,

ab-4a-4b+16= 8

(a-4)(b-4)= 8

Since b > a, then we have the possibilities

(a-4) = 1 and (b-4) = 8, or (a-4) = 2 and (b-4) = 4.

(5, 12) or (6,8) which gives us 2 possibilities.

Read more about possibilities here:

brainly.com/question/25870256

#SPJ1

8 0
2 years ago
Rhian believes he was unfairly passed over for a promotion, so he meets with his union steward to complain. The steward meets wi
bonufazy [111]
Why so that saying did correct answe right I don’t know the answer I am just answering to see something about my points because they are negative and I am trying something
7 0
2 years ago
What does Peter Drucker believe is needed to correct unethical behavior in business?
Valentin [98]

Answer:

The correct answer is b. Imposing stiffer punishments on business executives

Explanation:

Customer retention is the activity that sales organizations carry out in order to reduce the loss of customers. Successful customer retention begins with the first contact an organization has with a customer and continues throughout the life of the relationship. A company's ability to attract and retain new customers is not only related to its product or service, but also with the way in which it serves its current customers and the reputation it creates within and through the markets.

An important topic is simple everyday honesty. Entrepreneurs, they tell us solemnly, should not cheat, should not steal, should not lie, should not bribe. But neither should other people. No man, no woman is free from the obligation to comply with the common rules of personal conduct due to their work or employment. Nor do they cease to be human beings when they are appointed vice presidents, municipal administrators or deans of some faculty. On the other hand, there have always been people who cheat, steal, lie, bribe or are bribed. It is a matter of moral values ​​and moral education of individuals, of the family, of the school. But there is no separate ethic for business, nor is it necessary to exist.

All that is needed is to distribute harsh punishments to those who, company executives or not, have yielded to temptations. Another recurring theme in the discussion about business ethics has nothing to do with ethics. Things such as the use of paid companions to entertain customers are not matters of ethics but of aesthetics. The real question is if I really want to see a pimp when I look in the mirror while I shave.

6 0
2 years ago
Laura says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than the
Andrews [41]

Answer:

The correct answer is A. Both Laura and Cassie are correct.

Explanation:

Since Laura says that the present value of $ 700 to be received one year from today if the interest rate is 6 percent is less than the present value of $ 700 to be received two years from today if the interest rate is 3 percent, and Cassie says that $ 700 saved for one year at 6 percent interest has a smaller future value than $ 700 saved for two years at 3 percent interest, to determine who is right, the following calculations must be performed:

700 x 1.06 = 742

700 x 1.03 ^ 2 = 742.63

Therefore, both Laura and Cassie are correct in their claims.

5 0
2 years ago
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