Answer:
The beta on Marvelous’ common stock decreases from 1.4 to 1.2
Explanation:
According to the scenario, computation of the given data are as follow:-
As we know that
Expected Return = Market Risk Premium × Beta + Risk Free Rate
If the Beta is decreased, this means that expected return is decreased too, and if the expected return decreases the market value is decreases too.
According to the analysis, The Beta on marvelous’ common stock decreases from 1.4 to 1.2 is correct option.
Answer:yes and yea and no
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Answer:
producing 200 units of Model A would be the best of the 25,000 lbs of steel and 4,000 zinc available
With a profit of 200 units x $90 each = 18,000 dollars
Explanation:
Model A contribution:
90 / 125 = 0.72
90 / 20 = 4.5
Model B contribution:
70/ 100 = 0.7
70/ 30 = 2.33
As model B generates lower contribution for both scarse resources is not convinient to produced altogether.
It should produce Model A as much as it can and only fill with Model B if needed
25,000 lbs of steel / 125 per Model A = 200 units of A
200 units of A x 20 lbs of zinc each = 4,000 lbs of zinc
producing 200 units of Model A would be the best of the 25,000 lbs of steel and 4,000 zinc available
Answer:
the current stock price is $34.40
Explanation:
The computation of the current stock price is shown below:
Current price is
= D1 ÷ (Required return - Growth rate)
= (2.15 × 1.04) ÷ (0.105 - 0.04)
= $34.4
Hence, the current stock price is $34.40
We simply applied the above formula so that the correct answer could come
Answer: double-dividend hypothesis
Explanation: The double dividend hypothesis is the theory that proposes that environmental taxes can improve the environment by reducing pollution and increase economic efficiency at the same time. This is because the use of environmental tax revenues can be channeled into reducing other taxes such as income taxes that deform labor supply and saving decisions. In other words, If the parties that are generating these negative benefits to others would be taxed heavily for these effects, they would have an incentive to reduce production of whatever is causing the negative externality.
