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Goryan [66]
2 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]2 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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How can I start my own home base business
nydimaria [60]
You can contact a spokesman who will be able to assist you.
It is essential to have a budget that you can spent on your company.
Depending on what business you'll take part of, make sure it's advertised to the public (i.e flyer, ad)
In order to make your business the limelight, you can ask people that can be employed to your Corp. that way your business can be known by many people.
Keep your budget obtained, and don't spent to much money on your business.
You should avoid taking risks or your business can become a flop.

Good luck !! :)

6 0
3 years ago
What is the difference between a bear market and a bull market​
leva [86]

Answer:

Explanation:

A bear market, refers to a stock market in which the stock and index prices are generally expected to fall, have been or are falling. In contrast, a bull market refers to a stock market where share or index prices are expected to rise, have been or are rising. These terms are figuratively derived from the two animals’ fighting tactics. A bull will charge forward and horns up thus a rise, while a bear will thrust its paws downwards, thus a decline.

3 0
2 years ago
DW has an ending Retained Earnings balance of $51,100. If during the year DW paid dividends of $4,300 and had net income of $22,
ANEK [815]

Answer:

C. $32,900

Explanation:

The computation of the beginning retained earning balance is shown below"

As we know that

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

$51,100 = Beginning retained earning balance + $22,500 - $4,300

$51,100 = Beginning retained earning balance + $18,200

So, the beginning retained earning balance would be

= $51,100 - $18,200

= $32,900

8 0
3 years ago
2. A small business makes cakes for parties and weddings. Which two of the following are most likely to be resources it uses dir
Katarina [22]

D and A.

The reasoning is because if they are making a cake then they may use flour, and they may have to clean up their mess afterwards.

6 0
2 years ago
When direct-comparison ads first appeared, they attracted Ted's attention. Now that there are so many of them, he is not paying
Oksana_A [137]

Answer:

The correct answer is A

Explanation:

Habituation is the reduction in the response to a certain stimulus after the repeated or repetation in the presentations. In short, it is defined as the theory that allows the person or an individual to tune out an stimuli which is external in order to focus on other things which demand their attention.

In this case, the ads first appeared, so it attract the attention of Ted, but when there are multiple ads of the same, then the he is not paying so much attention because of the habituation.

7 0
3 years ago
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