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Neporo4naja [7]
2 years ago
14

Two central components of the CAPM are the​ ________. A. riskminus free rate and the market risk premium B. risk premium and the

inflation rate C. market rate and the inflation premium D. inflation rate and the market rate
Business
1 answer:
madam [21]2 years ago
7 0

Answer:

A. riskminus free rate and the market risk premium

Explanation:

The CAPM is the Capital asset pricing model which required to find out the expected rate of return. The formula is shown below:

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 and the same is applied for the computation

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Kendra’s Quilts makes custom baby quilts embroidered with the baby’s name and date of birth. The company is considering the purc
maxonik [38]

Answer:

They should purchase the machine.

Explanation:

Giving the following information:

The company is considering the purchase of a new embroidery machine that costs $75,000. The increased efficiency of the new machine would allow the company to increase revenue by 50%, from $250,000 to $375,000 annually. Direct labor costs would increase by $15,000, and fixed costs (not including depreciation on the machine) would increase by $12,500.

Effect on income= 125,000 - 75,000 - 15,000 - 12,500= $22,500

They should purchase the machine.

8 0
2 years ago
9) Marshall Corporation has established a target capital structure of 35 percent debt and 65 percent common equity. The current
Snezhnost [94]

Answer:

\boldsymbol{ Weighted\;average\;cost\;of\;capital (WACC)=5.35\%}

Explanation:

This acts as more of a discount price for such an estimation of such a fixed present price of a company. It is often used to analyze investments when it is supposed to measure the opportunity price of the company. It is then used by corporations as the obstacle limit.

Let the total cost of equity to be Re = 5% = 0.05.

Let the market value to be E = 65% = 0.65.

Let V to the total market cost that combined debt and equity = 1 .

Let the total price of debt to Rd = 10% = 0.1.

Let the debt to be D = 35% = 0.35.

Let the income tax rate to be Tc = 40% = 0.4.

                WACC=\frac{E}{V}\times Re + \frac{D}{V} \times Rd \times(1-Tc)

                             =\frac{0.65}{1} \times0.05+\frac{0.35}{1} \times0.1\times(1-0.4)=5.35\%

5 0
1 year ago
A publisher receives cash for a magazine subscription during Year 1. The publisher sends magazines on a monthly basis to that cu
lawyer [7]

Answer:

FALSE

Explanation:

The revenue recognition principle state the firm will only reocgnize a revenu once the sercvice is performed. in this case the revenu should be recognize over time after each magazine is delivered or through adjusting entries at year-end or quarter-end. Never entirely as this represent an obligation to delivwer this magazines or return the money. It isn't revenue. It is a liability which becomes revenue over time.

8 0
1 year ago
When Coca-Cola determines the bottled-water competitors for its Dasani brand by identifying the products or sets of products wit
GarryVolchara [31]

Answer: Category membership

Explanation:    

 According to the given question, the given situation is basically determining the dasani's category membership as it helps in categorizing the various types of products and the services on the basis of their similar features and the characteristics.

The main purpose of the category membership is that it helps in understanding the various types of offers related to the specific brand and also the high competitive choice.

The customers basically wanted the product at lower price with high quality and they usually prefer the discount offers. Therefore, Category membership is the correct answer.  

   

4 0
2 years ago
How well acquainted with a sport would a publicist need to be in order to do his or her job effectively?
Mrac [35]

Answer:

at the very least, understand the basics of the sport in question

Explanation:

A publicist is an individual who generates and manages publicity for a company, a brand, or a public figure. If the publicist works for a sports company/magazine they need to, at the very least, understand the basics of the sport in question such as the rules, basic terminology used, player names/states, etc. This is because they need to write articles that make sense, and since the audience reading them will be very well versed in the sport, then the information provided needs to be accurate.

8 0
1 year ago
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