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quester [9]
3 years ago
15

Is Donald Trump a great president or Joe Biden?

Business
1 answer:
Len [333]3 years ago
6 0
Both of the president are not good president to be honest
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Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a
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$12,900

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8 0
3 years ago
Suppose that the risk-free rate is 5% and that the market risk premium is 7%. What is the required return on (1) the market, (2)
Nesterboy [21]

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r market = 0.12 or 12%

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r stock = 0.12 or 12%

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The required rate of return can be calculated using the CAPM or Capital asset pricing model equation. The formula for required rate of return under this model is,

r = rRF + Beta * rpM

Where,

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  • rpM is the risk premium on market
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The beta of the market is always considered to be 1. Thus, the required rate of return on market would be,

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r market = 0.12 or 12%

2.

For a stock whose beta is 1.0, the required rate of return would be same as that for market. So, the required rate of return for a stock with a beta of 1.0 is,

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r Stock = 0.12 or 12%

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3 0
3 years ago
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