Answer:
The balances after recognizing all payments and sales to its customers is $9,500
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What type of promise to pay does a promissory note represent?
2 answers:
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Answer:
Cost of Equity 16.33%
Explanation:
We solve for this using CAMP:
risk free = 0.0387
premium market = (market rate - risk free) 0.0903
beta(non diversifiable risk) = 1.38
Ke 0.16331 = 16.33%
We are given with the risk free rate of return and the market premium already so we just need to plug into the formula to solve for the expected return on the stock.