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Scilla [17]
2 years ago
14

Southern Home Cooking just paid its annual dividend of $.75 a share. The stock has a market price of $16.80 and a beta of 1.14.

The return on the U.S. Treasury bill is 2.7 percent and the market risk premium is 7.1 percent. What is the cost of equity
Business
1 answer:
SIZIF [17.4K]2 years ago
8 0

Answer:

The multiple choices are:

9.98 percent

10.04 percent

10.79 percent

10.37 percent

10.45 percent

The third option of 10.79% is correct

Explanation:

The cost of equity according to Miller and Modgiliani capital asset pricing model is given below:

Ke=Rf+beta*(Mrp-Rf)

Rf is the risk free rate which is the return on government security is 2.7%

beta is 1.14

Mrp is the market risk premium is 7.1% which is given in the formula as (Mrp-Rf)

Ke=2.7%+1.14*7.1%

Ke=2.7%+8.09%

Ke=10.79%

Hence the correct option out of the options given above is the third option

It is expected that any shareholder that invests in the shares of Southern Home Cooking would get return of 10.79%

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Which one of the following statements is true? a. A manufacturing company will normally have raw materials, work in process, and
soldier1979 [14.2K]

Answer:

d. A manufacturing company will normally have raw materials, work in process, and merchandise inventory as inventory account classifications.

Explanation:

  • Normally a manufacturing company has various inventors such as raw material, work in progress and finished goods and the inventories are goods that held up in stocks for the ultimate goal of resale, another type of inventories include transit inventory, buffer inventory and cyclic inventory.
  • Merchandise inventory is a finished good that is taken for sale by retail or wholesale. The finished goods for the sale by manufactures are generally called as finished goods inventory.
7 0
2 years ago
The owners of a local restaurant routinely try to develop new menu items and seek better ways of helping their customers. ______
Yuri [45]

Answer: The answer is INNOVATION.

Explanation: Innovation refers to a new idea, method or product. In business, innovation is a conscious effort at way of meeting customers needs through development of new ideas and extreme creativity.

5 0
2 years ago
A physician saw 24 patients on monday, 16 on tuesday, 25 on wednesday, 8 on thursday, and 22 on friday. what is the average numb
Verizon [17]
19...

1st you add the number of patients she had
24+16+25+8+22= 95

2nd divide the number by the days of the week

95/5=19

please vote my answer brainliest. thanks!
4 0
2 years ago
Which of the following statements is true regarding a work team?A) Work teams are rarely used in organizations today.B) Work tea
Lyrx [107]

Answer:

C) Work teams generate positive synergy through coordinated effort.

Explanation:

<u><em>Work teams is a team formed with number of individuals working for the same goal, who posses different talents and values, and joint together, providing a positive synergy in the team, towards the common goal.</em></u>

Work teams are focused and for reaching the goals, distribute the work among themselves through a facilitator, who is said to lead the work team, in the process of achieving a common goal.

Therefore, correct statement is:

Statement C

3 0
2 years ago
When Terry fed her dog, she noticed that only one can of Alpo Beef Chunk Dinner remained. Since it was the only kind her aging d
pishuonlain [190]

Answer:

When Terry fed her dog, she noticed that only one can of Alpo Beef Chunk Dinner remained. Since it was the only kind her aging dog ate, she stopped at the supermarket and bought a case of Alpo Beef Chunk Dinner dog food. She used habitual decision making process to replenish her stock of can.

Explanation:

As we have seen that Terry feeds her dog with only Alpo Beef Chunk, she don't consider any other option, product and brand, therefore, she needs very less search and almost no evaluation of any other option available in this product category. In this kind of decision making consumers needs very less information about the product because they know what they are going to purchase and they are very less bothered about the other options. Consumers feel almost no frustration in searching for the information and looking into the shelves for the other brands, they just go straight to the racks and pick their products up. Consumers saves their time by using this kind of decision making. In this kind of decision making, human brain form certain patterns, develop habits and therefore, saves energy.

5 0
2 years ago
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