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nasty-shy [4]
2 years ago
6

Nagel Equipment has a beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-b

ond rate is 5.25%. The annual return on the stock market during the past 4 years was 10.25%. Investors expect the average annual future return on the market to be 14.75%. Using the SML, what is the firm's required rate of return
Business
1 answer:
valkas [14]2 years ago
7 0

Answer:

13.61 %

Explanation:

We have these information to answer the question

Risk free rate = 5.25

Beta = 0.88

Future return on market = 14.75

The formula for required rate of return

= Risk free rate + [ Beta * (future return on market - risk free rate)]

= 5.25 + [0.88(14.75-4.62)]

= 5.25 + (12.98-4.62)

= 5.25 + 8.36

= 13.61%

Therefore the firm's required rate of return = 13.61 %

Thank you!

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Many companies are capitalizing on people being at the airports longer and not being able to carry many personal health and beau
andreev551 [17]

Answer:

A) kiosk

Explanation:

Based on the information provided within the question it can be said that in this scenario the vending machines in the airport is a kiosk. This term refers to  physical structure which is used either to display information to passing strangers or to provide the individuals passing by with a product or service. Which in this case the structure/vending machine is providing beauty products.

8 0
3 years ago
You are a junior in college. You sent your resume to a half-dozen companies hoping to get a summer internship. Two weeks ago XYZ
zlopas [31]

Answer:

I would politely reach out to XYZ organization and let them know I won't be taking them on their offer

Explanation:

In this particular situation, there is no legal binding in this agreement to start work. There is no responsibility from me to XYZ corporation.

If this new offer excited me more than what XYZ corporation has offered, then I have to decide which company i would decide to do my internship with. So I would have to politely decline the offer from XYZ.

3 0
2 years ago
In 1985, Alice paid $20,000 for an option to purchase ten acres of land. By paying the $20,000, she bought the right to buy the
nata0808 [166]

Answer:

Alice should exercise the option and pay $100,000 for the land.

Explanation:

As Alice has paid $20,000 for the option to acquire the land of ten acres.

In 1985, the worth of land was $120,000 but in 1992, the worth changed to $110,000. She should exercise the option because the inflation rate is the reason in the decrease in the worth of land. By buying the land, she can utilize the land by investing in it instead of holding the money as it will depreciate. By investing the money, she will get the profit and will increase in her wealth. Moreover, she can use other options by selling to another person after adding some value to the land and can get the profit.

8 0
3 years ago
Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide alloca
IgorC [24]

Answer:

Option (D) is correct.      

Explanation:

Total Overhead Cost:

= (Overhead × Number of cases) for all products

= (20 × 350) + (25 × 550) + (17 × 650)

= 31,800

Total Machine Hours:

= Machine hours × Number of cases

= (5 × 350) + (3 × 550) + (4 × 650)

= 6,000

Overhead Rate:

= Total Overhead Cost ÷ Total Machine Hours

= 31,800 ÷ 6,000

= 5.30

Total product cost per case for Product GC:

= Direct Material + Direct Labor + Overhead

= 80 + 30 + (Machine hours × Overhead Rate)

= 80 + 30 + (3 × 5.3)

= 80.00 + 30.00 + 15.90

= $125.90

4 0
3 years ago
Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a d
Pavlova-9 [17]

Answer:

$2,300,000

Explanation:

The formula to compute the operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,  

EBIT = Sales - operating expenses - depreciation expense  

= $7,000,000 - $4,000,000 - $1,000,000

= $2,000,000

And, the income tax expense is

= $2,000,000 × 0.35

= $700,000

So, the value would equal to

= $2,000,000 + $1,000,000 - $700,000

= $2,300,000

We simply applied the above formula

7 0
3 years ago
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