Answer:
We have:
Amount of principal = $268,000
Interest payment = $1,522.24
Explanation:
These can be calculated as follows:
Loan principal = Cost of the home * Percentage to borrow = $335,000 * 80% = $268,000
Interest payment = (Loan principal / $1,000) * $5.68 = ($268,000 / $1,000) * $5.68 = 268 * $5.68 = $1,522.24
Therefore, we have:
Amount of principal = $268,000
Interest payment = $1,522.24
Answer and Explanation:
The computation is shown below:
As we know that
According to the Capital Asset Pricing Model (CAPM) formula
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
And, the market rate of return - Risk-free rate of return is also known as the market risk premium
As we can see that the Alcoa contains high beta as compared to Hormel Foods so the Alcoa has a higher equity cost of capital
And, the higher rate is
= (Excess return of the market) × (Alcoa beta - Hormel foods beta)
= (3%) × (1.85 - 0.39)
= 3% × 1.46
= 4.38%
I just needed some points to figure things out i don’t do anything else
Answer:
d. 16% - buy
Explanation:
R = (D1 / P0) + g
Where, R=Expected Return, P0 = Current Market Price = $40, D1=Expected Dividend=$, g = Expected Growth Rate = 11% = 0.11
Expected Return = R = ($2/$40) + 11%
R = 0.05 + 0.11
R = 0.16
R = 16%
Expected Return is higher than the required return of 12%. Hence, it should be bought (it is expected to give higher return than required)
Answer:
Merchant wholesaler
Explanation:
A merchant wholesaler is a business owner that specializes in purchasing goods in large quantities and then sell to other retailers and wholesalers.
Since they purchase their products in large quantities, they have different warehouses in their acquisition. These warehouses are used to store the products.
Merchant wholesalers are very vital in the chain of distribution as they facilitate the smooth movement of goods which takes places between the producers and the retailers.
In the scenario described above, W.W. Grainger is an example of a merchant wholesaler.
