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
valkas [14]
3 years ago
6

Magee Company's stock has a beta of 1.20, the risk-free rate is 4.50%, and the market risk premium is 5.00%. What is Magee's req

uired return
Business
1 answer:
nexus9112 [7]3 years ago
8 0

Answer:

10.50%

Explanation:

Calculation for Magee's required return

Using this formula

Required return=Risk-free rate+Beta(Market risk premium)

Let plug in the formula

Required return= 4.50% + 1.20(5.00%) .

Required return=4.50%+6%

Required return= 10.50%

Therefore Magee's required return will beb10.50%

You might be interested in
A stationery company plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cos
stich3 [128]

Answer:

The advertising spend would reduce income taxes by $2.8 million

Explanation:

The advertising expense since it is allowable expense from profits made in the year would reduce income taxes next year by  $2.8 million ($8 million *35%)

This means that because of its tax deductibility,it would make a business sense to incur the advertising cost of $8 million coupled with the fact the it has the potential to increase sales revenue over and above the current level of $280 million

3 0
4 years ago
Under the corporate form of business organization, a.stockholders wishing to sell their corporate shares must get the approval o
BARSIC [14]

Answer:

The correct option is B.

Explanation: A corporate form of business organization is an organization which has an existence that is independent of its owners, meaning that the organization exists separately from its owner(s).

In other words, Corporations are business organizations that have powers and liabilities which are separate and distinct from those of its owners.

Corporate organizations are by far, the easiest to forms of incorporated structures to transfer, whether this is part or the whole company. What this means that a major attribute of a corporate organization is that ownership rights in the corporation can be easily transferred from one person to another, and this can be either a part of the organization, or the whole organization.

7 0
3 years ago
An open market operation is​ ____________.
Svet_ta [14]
A feds sell to private banks
3 0
3 years ago
Read 2 more answers
The manager is responsible for training you about food safety in your job duties. The most important of these include: Preparing
IceJOKER [234]
I would believe that it would be showing you when and how to wash your hands properly. Because if an employee doesn't have clean hands than the food isn't safe to consume. So I would say the third option.
Hope this helps!
<3
5 0
3 years ago
Read 2 more answers
A group of teens in your town meet and agree to charge a flat fee of five dollars per hour for babysitting. They charge the same
swat32

Answer:

a monopoly

Explanation:

6 0
4 years ago
Read 2 more answers
Other questions:
  • Dorn purchased the rights to extract turquoise on a tract of land over a five year period. Dorn paid $200,000 for extraction rig
    8·1 answer
  • Lupe rented her personal residence for 13 days to summer vacationers for $3,800.
    14·1 answer
  • A man is fired from his job because he was late for work too many times. searching for another job he would be classified as (a)
    13·1 answer
  • What agency provides over 25,000 government publications?
    13·1 answer
  • In a small open economy, if consumer confidence falls and consumers decide to save more, then the real exchange rate:______. a.
    11·1 answer
  • In the current year, Oriole Corporation donated a painting worth $30,000 to the Texas Art Museum, a qualified public charity. Th
    12·1 answer
  • Here are selected data for Wilson​ Company: Estimated manufacturing overhead $ 247 comma 760$247,760 Factory utilities ​ $30,200
    15·1 answer
  • In the current year, Norris, an individual, has $59,000 of ordinary income, a net short-term Capital loss (NSTCL) of $9,100 and
    15·1 answer
  • Ty has been working for Lyft for three months. He expected that his job would be to respond to requests on the app for a ride, p
    9·1 answer
  • How variable costing would most likely be used<br> in a service business?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!