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
nasty-shy [4]
3 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]3 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!

You might be interested in
A check drawn by a credit union on its account at a federally insured bank would be an example of a:
Ivenika [448]
A check drawn by a credit union on its account at a federally insured bank would be an example of a cashier check. It is a type of check that is being issued by the bank being withdrawn from the own funds of the bank and being signed by the cashier of the bank. These are classified as guaranteed as funds since it is the bank that is held responsible for the payment of the amount. These are usually used in real estate and transactions pertaining to brokerage. This type of check has the name of the bank that issued it in an obvious location and it has improved security features like color shifting ink, security thread and watermarks.
8 0
3 years ago
Zoom Enterprises expects that one year from now it will pay a total dividend of $ 5.0 million and repurchase $ 5.0 million worth
uranmaximum [27]

Answer:

Consider the following calculations

Explanation:

The price per share is computed as shown below:

Present value of equity is computed as follows:

= $ 10 million / 0.13

= $76,923,076.92

Now we shall divide it by the number of shares to get the price per share

= $76,923,076.92 / 5,000,000

= $ 15.38 per share

Feel free to ask in case of any query relating to this question

5 0
3 years ago
The net of a triangular prism is shown below.
harkovskaia [24]

The perimeter is the sum of all three sides of the triangle. In this case it is 18.

<u>Explanation:</u>

In geometry, a triangular crystal is a three-sided crystal; it is a polyhedron made of a triangular base, a deciphered duplicate, and 3 faces joining comparing sides. A privilege triangular crystal has rectangular sides, else it is angled.

A triangular prism has two triangular bases and three rectangular sides and is a pentahedron since it has five countenances. Outdoors tents, triangular rooftops and "Toblerone" wrappers - chocolate pieces of candy - are instances of triangular prisms.

6 0
3 years ago
How can you make sure that your business report meets the needs of the target audience?
qaws [65]

Answer:

A. Consider updating them about progress and involving them in the process.

4 0
3 years ago
The finance team of a company conducts a meeting to discuss the worthiness of investing its funds in the local share market. Alt
Alex Ar [27]

Answer:

C. groupthink

Explanation:

According to my research on in the field of psychology, I can say that based on the information provided within the question this scenario illustrates the concept of groupthink. This is a psychological phenomenon which states that the desire for maintaining a cooperative and harmonious nature within a group leads individuals in that group to behave irrationally leading to bad decision-making choices. Which is what is happening in this scenario since Mikhail isn't voicing her opinion in order to maintain the same group dynamic.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
Other questions:
  • Michelle buys a bond for $5,000. every year that she holds the bond, she'll receive interest payments of $250. the interest rate
    10·1 answer
  • An algebra class has 20 students and 20 desks. for the sake of variety, students change the seating arrangement each day. how ma
    5·1 answer
  • Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is
    6·1 answer
  • A company is trying to systematically improve processes by eliminating non-conformity of their products to product specification
    14·1 answer
  • On June 5, 2019, Mabel Company purchased an oil well for $850,000. The well contains an estimated $85,000 barrels of oil, with a
    7·1 answer
  • Procter &amp; gamble's tide laundry detergent has a predominant share of the detergent market in the united states. It makes $4.
    7·1 answer
  • Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constan
    14·1 answer
  • The most important benefit of celebrating partnership success by ""telling your story"" is that it: A. Establishes connections b
    7·2 answers
  • What are personal, property, and liability risks? What are examples of personal, property, and liability risk?
    5·1 answer
  • Which of the following is used by a seller to deceive a buyer? a. Bait and switch b. Contest c. Display d. Introductory offer Pl
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!