Answer: True.
Explanation:
A business brand earns a customer's trust gradually with time, by consistency and honesty on the part of the business brand. This customer trust can easily be lost, if the business brand is engaged in even a little scandal or reckless act.
The answer is wear-and-tear theorists. Wear and tear speculations of natural maturing suggest that maturing in people and different creatures is just the aftereffect of widespread deteriorative procedures that work in any sorted out framework.
Answer:
The correct answer is letter "D": All of the above.
Explanation:
Alternative Minimum Tax (AMT) is an action taken by the Internal Revenue Service (IRS) to encourage every taxpayer to pay at least the minimum amount possible out of the income received. This includes a series of deductions that are not limited to <em>standard deductions</em>, <em>personal exemptions, medical and dental expenses, charitable donations, qualified taxing interest, </em>and <em>casualty losses</em>.
Answer:
a. 14.75%
b. Under priced
Explanation:
The computation for the required rate of return is shown below:
a. Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 6% + 1.25 × (13% - 6%)
= 6% + 1.25 × 7%
= 6% + 8.75%
= 14.75%
b. As the required rate of return comes 14.75% and the required return is 16% so it is under priced as expected return is more than the required return
Answer:
Risk free interest rate is 5%
Y is 15.5% at a Beta of 1.5
X is 0.29 when Y is 7%
Explanation:
Risk free interest is 0.05 which 5% as given in the equation
The average expected return is given by Y
Y=0.05+0.07X
Since Beta is the same as X, when equals 1.5,Y is calculated thus
Y=0.05+0.07(1.5)
Y=0.05+0.105
Y=0.155
Y=15.5%
The value of Beta at an average return of 7% is computed thus:
7%=0.05+0.07X
where X is the unknown
0.07=0.05+0.07X
0.07-0.05=0.07X
0.02=0.07X
X=0.02/0.07
X=0.29
The scenario illustrates that the Beta, which is the risk of investment and the Y , the expected average return are positively correlated.
