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Delvig [45]
2 years ago
15

Diddy Corp. Stock has a beta of 1.2, the current risk-free rate is 6 percent, and the expected return on the market is 14.50 per

cent. What is Diddy's cost of equity?
Mathematics
1 answer:
ryzh [129]2 years ago
8 0

Answer: 16.2%

Step-by-step explanation:

You can find the cost of equity using the Capital Asset Pricing Model (CAPM).

Cost of equity = Risk free rate + Beta * (Expected return on market - Risk free rate)

= 6% + 1.2 * (14.50 - 6%)

= 6% + 10.2%

= 16.2%

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Two cones are similar. The surface area of the larger cone is 65π square inches. The surface area of the smaller cone is 41.6π s
devlian [24]

Answer:

8 inches

Step-by-step explanation:

The surface area of a cone (without the base) is given by:

Surface area = pi*r*s

Where r is the base radius and s is the slant height.

The smaller cone has a surface area of 41.6pi in2 and a radius of 6.4 inches, so the slant height is:

41.6pi = pi*r*s

41.6 = 6.4s

s = 6.5 in

If the cones are similar, the radius and the slant height increase in the same proportion, so we have that:

r'/s' = r/s = 6.4/6.5

s' = r'*6.5/6.4

So for the larger cone, we have:

65pi = pi*r'*s'

65 = r'*r'*6.5/6.4

r'^2 = 64

r' = 8 inches

5 0
2 years ago
Read 2 more answers
The value of good wine increases with age. Thus, if you are a wine dealer, you have the problem of deciding whether to sell your
Katyanochek1 [597]

Answer: 64 years

Step-by-step explanation:

Let assume the dealer sold the bottle now for $P, then invested that money at 5% interest. The return would be:

R1 = P(1.05)^t,

This means that after t years, the dealer would have the total amount of:

$P×1.05^t.

If the dealer prefer to wait for t years from now to sell the bottle of wine, then he will get the return of:

R2 = $P(1 + 20).

The value of t which will make both returns equal, will be;

R1 = R2.

P×1.05^t = P(1+20)

P will cancel out

1.05^t = 21

Log both sides

Log1.05^t = Log21

tLog1.05 = Log21

t = Log21/Log1.05

t = 64 years

The best time to sell the wine is therefore 64years from now.

7 0
2 years ago
You ride your bicycle 40 meters. How many complete revolutions does the front wheel make?
Delicious77 [7]
First, we convert the given radius of the wheel to meters giving us an answre of 0.325 m. Then, we calculate for the circumference.
                                           C = 2πrr
Substituting,
                                          C = 2π(0.325 m) = 2.04 m
Then, we have a road that is 40 m long, the number of complete revolutions is,
                                      n = 40/2.04 m = 20 
7 0
2 years ago
Caleb has 1/3 of a watermelon. He cuts it into 4 equal pieces. What fraction of the watermelon is each piece
polet [3.4K]

Answer:

1/12 of the watermelon in each piece

Step-by-step explanation:

  1. We must divide 1/3 by 4.
  2. 1/3 divided by 4 is also 1/3 x 1/4.

The final answer is 1/12.



<em>I hope this helped!</em>

5 0
2 years ago
Read 2 more answers
Find the length of DF or state what additional information you would need to find it.
hichkok12 [17]

Answer:

DF=3.75

Step-by-step explanation:

24/6=15/x

cross multiply to get 24x=90

x=3.75

5 0
1 year ago
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