Answer:
Cost of equity = 14.74%
Explanation:
The capital asset pricing model is a risk-based model for estimating the return on a stock..
Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk.
Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM,
E(r)= Rf + β(Rm-Rf)
E(r)- cost of equity , Rf-risk-free rate , β= Beta, Rm= Return on market.
Using this model, we can work out the value of beta as follows:
β-1.2 Rf- 4.3%, Rm = 13%
E(r) = 4.3% + 1.2 × (13 - 4.3)%=14.74
%
Expected return = 14.74
%
Cost of equity = 14.74%
Answer: Look farther into both options you have, whichever you need the most, pick that one
Explanation:
Answer:
Sales revenue $ 710,000
Cost of goods sold $ 385,000
Gross Profit $ 325,000
Selling expense 71,000
Administrative expense 91,000
Operating Income 163,000
Non-Operating Income
Interest revenue 44,000
Gain on sale of investments 91,000
Interest expense (28,000)
Restructuring costs (67,000)
Income before taxes 203,000
Income tax expense (50,750)
Net Income 152,250
Shares outstanding 100,000
Earnings per share $1.52
Explanation:
We need to determinate gross profit.
then, the operating income therefore the interest and restructuring cost are not considered. Same goes for the gain on investment as aren't part of the business normal activities.
The Answer is A Paying attention to detail I just took the Apex test
Answer:
the required time is 36 seconds
Explanation:
The computation of the required time is given below:
= Production time available ÷ desired output
= (8 hours × 60 minutes × 60 seconds) ÷ 800 units
= 28,800 ÷ 800
= 36 seconds
hence, the required time is 36 seconds
