Answer:
The firm's cost of common stock is 13%
Explanation:
Use the following CAPM formula to calculate the cost of common stock
Cost of common stock = Risk free rate + beta x ( Market return - Risk free rate )
Where
Risk free rate = 5.5%
Market return = 11.50%
Beta = 1.25
Placing values in the formula
Cost of common stock = 5.5% + 1.25 x ( 11.50% - 5.5% )
Cost of common stock = 13%
Answer: A Perceptual Map
Explanation:
A Perceptual Map also known as a product positioning map is a pictorial representation of how consumers sees a product as it relates to their competitors in the market.
Answer:
In this meeting, top managers of one world are <em>doing strategic planning.</em>
Explanation:
In the field of business management, strategic planning can be described as organizational planning in which priorities are discussed, goals are set, operations are strengthened, agreements are made on common goals and agendas and assessment of the different works of the organization are made.
As in the scenario depicted above, the upper-level managers had a meeting with the CEO to discuss future plans and make an assessment of the current works, hence we can say that strategic planning was being done in the meeting.
<span>The fact that people are willing to save money for future purposes describes the function of money as a store of value.
Money is generally accepted as a form of payment for any transaction. This makes it possible for people to measure value of services or a goods easily by expressing their value in form of money make it possible for us to account for anything (good and services) in our books of record. This characteristic of money gives it value and ability to be saved or stored as a liquid asset for meeting any emergencies, debts or future buying opportunities for good and services among other needs. Hence, Money can therefore act as a medium for storage of value.</span>
Answer:
B) determines the target federal funds rate and the direction of open market operation policies.
Explanation:
The Federal Open Market Committee (FOMC) is made up of 12 members:
- the seven members of the Board of Governors of the FED
- president of the Federal Reserve Bank of New York
- four of the remaining eleven federal reserve bank presidents
Its main roles are to:
- set monetary policy
- set target federal funds rate
- implement the open market operation policies
