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slavikrds [6]
3 years ago
13

Caribou Gold Mining Corporation is expected to pay a dividend of $4 in the upcoming year. Dividends are expected to decline at t

he rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of 0.5. Using the CAPM, the return you should require on the stock is _________.
Business
1 answer:
Margaret [11]3 years ago
6 0

Answer:

r = 0.09 or 9%

Explanation:

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM  - rRF)

Where,

  • rRF is the risk free rate
  • rM is the market return

r = 0.05  +  0.5 * (0.13 - 0.05)

r = 0.09 or 9%

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As the difference among computer manufacturers in the areas of price and performance narrows, support for green computing is eme
lord [1]

Answer:

True

Explanation:

Because prices for computers have fallen across manufacturers, while performance has improved at the same time, manufacturers are now trying to distinguish themselves through the use of green technologies and strategies, with the goal of obtaining the market share of customers who are worried about the enviroment, and about sustainability.

7 0
3 years ago
The balance in Accounts Receivable at the beginning of the year was $ 550 comma 000. The balance in Accounts Receivable at the e
mina [271]

Answer:

$3,400,000

Explanation:

The computation of the credit sales is shown below:

As we know that

Closing balance of  accounts receivables = Opening balance of  accounts receivables + Credit Sales - Bad debts written off - Cash collected from credit customers

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So, the credit sales is

= $4,150,000 - $750,000

= $3,400,000

Simply we applied the above formula

5 0
3 years ago
John Hernandez is 24 years old and has saved enough money to fund an adequate emergency fund. In addition, he has saved $5,600 t
poizon [28]

Answer:

C. Growth

Explanation:

Starting investment early is something that is always encouraged and that is the case of John Hernadez here. By starting early, before he retires, he'd have been able to grow is investment portfolio substantially and even be a millionaire by the time of his retirement. Growth is the most important factor for John, that's why is he's starting his investment early. With the time given for growth, investment value may increase in value and it allows time for appreciation of stock price.

4 0
3 years ago
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The epa is planning to stiffen the requirements for cleaning pollutants from the stacks of? coal-fired electricity generating? p
IgorLugansk [536]
<span>With respect to organizational change, this would also represent a change in the type of waste machines that are used in the Industry. Since the EPA is targeting a 30% reduction of waste generated by coal-fired powerplants, the manufacturing industries are now required to adapt the new method that is  establish to minimize carbon footprint.</span>
8 0
3 years ago
Which three factors decrease because of protectionism?
boyakko [2]

Answer:

competition, goodwill with trade partners, and importation of goods

Explanation:

protectionism raises the cost of imported goods

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