Answer:
CCC's new required return be 16.5%
Explanation:
For computing the new required return, first, we have to compute the risk-free rate of return which is shown below:
Expected return = Risk- free rate of return + Beta × (Market risk - Risk- free rate of return)
12% = Risk- free rate of return + 1.5 × (10% - Risk- free rate of return))
12% = Risk- free rate of return + 15% - 1.5% Risk- free rate of return
So, the Risk- free rate of return is 6%
Now the average stock is increased by 30%
So, the new market risk is 13% and other things will remain constant
So, the new required return equal to
= 6% + 1.5 × (13% - 6%)
= 6% + 1.5 × 7
= 16.5%
Two criminal justice careers with the same skillset would be corrections officer & police officer. The similar skillset I see being useful in job performance would be verbal communication skills to question, talk, listen to people they serve. The second skillset would be physical stamina to walk, bend, carry extra gear, drive long distances.
These are just two examples. There are others you might identify as being important too.
Answer: a. $120,000
b. $6,000
c. Yes
Explanation:
a. It is said that the collection centres would help reduce the collection time by 2 days and that every day $60,000 comes in.
If the proposal will reduce the amount of time taken to collect by 2 days then that means that the amount freed up is the amount that they would have collected in two days had it not been for the system.
That amount would be,
= $60,000 * 2
= $120,000
b. If they used this free up cash to pay off a debt that was accumulating 5% per year then the 5% will be saved.
The amount saved therefore is,
= 120,000 * 5%
= $6,000
By retiring a $120,000 that was accruing $6,000 a year, the proposal has enabled that $6,000 to be saved instead.
c. The cost of implementing this proposal is $5,200 per year and yet the savings it gives in interest is $6,000.
As the savings are higher than the cost, the number definitely suggest that the project should be implemented because it is more beneficial than it costs.
Income demand curve ? Well I know it probably has something to do with money
