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
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>

You might be interested in
Achieving high product quality lowers operating costs because of the effect of quality on:___________.
denpristay [2]

Answer:

Option C, corporate-level planning, is the right answer.

Explanation:

Option C, “corporate-level planning” is the correct answer because it is the corporate planning according to which every employee has to work. If the quality of planning is good then the firm will produce higher output with lower operating cost and if the planning is not good or suitable then the firm can increase the productivity but operating cost may go very high. Therefore, option C is right.

5 0
4 years ago
The __________ method provides an alternative approach for allocating factory overhead that uses multiple factory overhead rates
Karo-lina-s [1.5K]

The plantwide allocation is a method, which involves the alternatives to the approach for the allocation of factory overheads, and also uses factory overheads based on different activities.

<h3>What is plantwide allocation?</h3>

The plantwide allocation rate is a method that uses an approach to compile all the required overhead costs of a business, and thus also involves application of one rate for one activity in an organization.

Hence, the significance of plantwide allocation is as aforementioned.

Learn more about plantwide allocation here:

brainly.com/question/15090267

#SPJ1

4 0
2 years ago
When workers intentionally reduce their productivity, it is called a(n)?
Tema [17]
When workers intentionally reduce their productivity, it is called a slowdown. This occurrence might be cause by a number of reason. One would be that they are not happy on how they are managed by the administration of the company. They would tend to do this to catch the attention of the admins.
8 0
3 years ago
Read 2 more answers
Which factor could influence an employer to increase an employee's wages?
ElenaW [278]

Answer:

B most likley because i dont see hwo it can be A or D because both will lower an employees wages

Explanation:

7 0
3 years ago
In a new margin account, a customer buys 1,000 shares of ABC stock at $40 per share. The stock rises to $50 during the next week
Helen [10]

Answer:

C) $5,000

Explanation:

Since the price of the stocks first rose to $50, the account's equity was $50,000.

The SMA balance was = ($50,000 x 1/2) - $20,000 = $,5000

The SMA balance acts like a stabilizer and cannot be taken away even if the price of the stocks fall slightly. The price of stocks must fall 25% in order for the SMA to be withdrawn.

The investor's equity decreased = equity - margin requirement = $39,000 - $20,000 = $19,000, but the amount that the investor can borrow (SMA balance) will remain the same at $5,000.

4 0
3 years ago
Other questions:
  • Garcia Ltd. is trying to estimate its cost of common equity, and it has the following information. The firm has a beta of 0.90,
    8·1 answer
  • Eve Cosmetics Company consists of two departments, Blending and Filling. The Filling Department received 50,000 ounces from the
    13·1 answer
  • It is possible to possess elements of more than one learning style.
    9·1 answer
  • Diamond enterprises is considering a project that will produce cash inflows of $41,650 a year for three years followed by $49,00
    13·1 answer
  • Mike Tyson earned about $200 million over his 15-year boxing career, but by 2003 he was in financial trouble. This is an example
    7·1 answer
  • Suppose you are planning to spend $1,768 annually for vacation during the next 30 years. You are offered to pay $30,000 now so t
    10·1 answer
  • Nolte Co. has 4,800,000 shares of common stock outstanding on December 31, 2012. An additional 200,000 shares are issued on Apri
    15·1 answer
  • A lawn service company has the following production possibilities. With​ one, two,​ three, and four​ workers, the company can mo
    5·1 answer
  • Tamika has conducted a series of performance tests on several different prototypes of her company's new product, and wants to pe
    9·1 answer
  • The level of investment in markets often indicates the stability of the government. the state of the economy. the success of ind
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!