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Goryan [66]
3 years ago
9

Linke Motors has a beta of 1.30, the T-bill rate is 6.5%. The annual return on the stock market during the past 3 years was 15.0

0%, but investors expect the annual future stock market return to be 13.00%. Based on CAPM, what is the firm's required return
Business
1 answer:
Bess [88]3 years ago
5 0

Answer: 14.95%

Explanation:

The firm required return is;

= Risk free rate + beta * (Market return - RIsk free rate)

= 6.5% + 1.30 * ( 13% - 6.5%)

= 14.95%

<em>It is better to use the estimated future return. </em>

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A company must account for a contract modification as a new contract if the:
valina [46]

Answer:

d. goods or services are distinct and company has right to receive the standalone price.

Explanation:

Goods or services are distinct and company has right to receive the standalone price.

8 0
3 years ago
Stubs-R-Us is a local event ticket broker. Last year, the company sold 750,000 tickets with an average commission of $10. Becaus
jok3333 [9.3K]

Answer:

$6,237,600

Explanation:

The computation of Estimate commission revenues is shown below:-

In the Coming year the market volume = 100% - 20%

= 80%

In the Coming year the number of sales = 100% - 8%

= 92%

In the coming year the Average commission per trade = 100% + 13%

= 113%

Commission revenue = Sold tickets × Average commission × In the Coming year the market volume × In the Coming year the number of sales × In the coming year the Average commission per trade

= 750,000 × $10 × 0.80 × 0.92 × 1.13

= $6,237,600

We applied the same formula to find out the commission revenue earned by the company

7 0
2 years ago
What city on the kansas river is the capital of kansas
almond37 [142]

Answer:

Topeka

The City of Topeka, located 60 miles west of KC Metro area, serves as both the state capital of Kansas and the county seat of Shawnee County, Kansas. Topeka is the fifth largest city in Kansas behind Wichita, Overland Park, Kansas City, and Olathe. The land within the City covers about 62.67 square miles.

6 0
2 years ago
Chuck offers $240,000 for a house. The seller turns down the offer but says she will sell the house for $260,000. However, Chuck
qaws [65]

Answer:

Chuck must be less than $260,000

Explanation:

The economic decision rule is: Do it if that marginal benefit exceeds the marginal cost and Since Chuck was unwilling to purchase the house at $260,000, we can deduce that the marginal benefit of purchasing the house must be less than $260,000 due to the fact that the seller turns down the offer but says she will sell the house for $260,000.

6 0
3 years ago
Your unique combination of attitudes, behaviors, and characteristics make up your _____. a. learning style b. self-concept c. pe
egoroff_w [7]

Answer:

C. Personality

Explanation:

Answer on Edge2020

4 0
2 years ago
Read 2 more answers
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