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Aleks04 [339]
2 years ago
13

The common stock of Serenity Homescapes has a beta of 1.21 and a standard deviation of 17.8 percent. The market rate of return i

s 13.5 percent and the risk-free rate is 3.2 percent. What is the cost of equity for this firm
Business
1 answer:
3241004551 [841]2 years ago
6 0

Considering the available information in the question, the <u>cost of equity</u> for this firm is "<u>0.1566</u>."

The <u>cost of equity</u> for the firm is expressed below:

RE = Rf + β × ( E (RM) − Rf );

Here, the RE is the

Rf => risk-free => 3.2 percent;

β => beta => 1.21;

E (RM) => market rate of return => 13.5 percent;

Thus, we have the following formula to compute:

RE = 0.032 + 1.21 × (0.135 − 0.032)

RE =<u> </u><u>0.1566</u>

Cost of equity is a term that is used I'm describing the rate of return firms need for business investment.

In another way, the Cost of equity depicts the rate of return that an individual needs for an equity investment.

Hence, in this case, it is concluded that the correct answer is "<u>0.1566</u>."

Learn more here: brainly.com/question/24242733

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You have been pricing an MP3 player in several stores. Three stores have the identical price of $300. Each store charges 24 perc
Valentin [98]

Answer:

a. $5

b. $4

c. $6

Explanation:

a. store A?

Beginning balance = $300

Ending balance = $300 - $100 = $200

Average balance = ($300 + $200) ÷ 2 = $250

Monthly APR = 24% ÷ 12 = 2%

June finance charge = Average balance × Monthly APR = $250 × 2% = $5

b. store B

June finance charge = (Beginning balance - Payments) × Monthly APR = ($300 - $100) × 2% = $4

c. store C?

June finance charge = Beginning balance × Monthly APR = $300 × 2% = $6

8 0
3 years ago
The following information is available for Bandera Manufacturing Company for the month ending January 31:
elena-14-01-66 [18.8K]

Answer:

Answer: Cost of goods sold, gross profit and net income

Explanation:

Bandera Manufacturing Company

Cost of Goods Sold

Jan-31  

Finished Goods Inventory, January 1 73590

Add: Cost of Goods Manufactured 306090

Total Goods Available for Sales 379680

Less: Finished Goods Inventory, January 31 67080

Cost of Goods Sold 312600

b)  

Bandera Manufacturing Company

Gross Profit

Jan-31

Sales 651250

Less: Cost of Goods Sold 312600

Gross Profit 338650

c)  

Bandera Manufacturing Company

Net Income

Jan-31

Gross Profit  338650

Operating Expenses:  

Selling expenses 102250  

Administrative expenses 54050  

Less: Total Operating Expense  156300

Net Income  182350

2)  

a)  

Digital Vibe Manufacturing Company

Income Statement

For the Month Ended January 31

Sales  232300

Less: Cost of goods sold  103400

Gross profit  128900

Less: Operating expense  

Selling expense 59400  

Administrative expense 26100  

Total operating expense  85500

Net income  43400

b)  

Particulars Amount ($)

Materials purchased 48300

Less: Materials used for production 37200

Ending balance of materials 11100

Particulars Amount ($)

Materials used for production 37200

Add: Direct labor wages 55500

Add: Factory overhead 78200

Total cost of manufacturing 170900

Less: Transferred to finished goods 129900

Ending balance of work-in-process 41000

Particulars Amount ($)

Transfer from work-in-process 129900

Less: Cost of goods sold 103400

Ending balance of finished goods 26500

4 0
2 years ago
According to the long-run Phillips Curve:
Oxana [17]

Answer:

c. fiscal and monetary policies that impact aggregate demand do not impact the natural rate of unemployment.

Explanation:

Short run Philips Curve is downward sloping, due to inverse relationship between unemployment rate & inflation rate. High economic activity implies more inflation rate, less unemployment. Low economic activity implies less inflation rate, more unemployment.

However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.

7 0
3 years ago
A worker’s positive reaction to a negative performance review from an employer might be to ______.
wel

A worker’s positive reaction to a negative performance review from an employer might be option A "ignore the criticisms made at the review." Option A seems to be the best fit for this question because option B would I consider a negative reaction because addressing the employer over the negative review could start a fight and the other two seem too irrelevant for this question.

Hope this helps.

3 0
3 years ago
Read 2 more answers
Alan runs a small manufacturing business. One day, a subordinate informed Alan about a problem in the production process because
Anton [14]
D. Resourcefulness; if you can pick more than one than also chose A. Confidence.
6 0
2 years ago
Read 2 more answers
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