answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alecsey [184]
1 year ago
8

Here are data on two companies. The T-bill rate is 4.8% and the market risk premium is 5.9%. Company $1 Discount Store Everythin

g $5 Forecast return 12 % 11 % Standard deviation of returns 12 % 14 % Beta 1.6 1.0 What would be the fair return for each company, according to the capital asset pricing model (CAPM)? (Round your answers to 2 decimal place
Business
1 answer:
tiny-mole [99]1 year ago
8 0

Answer and Explanation:

The computation of the fair return for each company is shown below:

Fair Return = Risk free rate of return + Beta × market risk premium

= 4.8 + 1.6 × 5.9  

= 14.24%

Now  

Everything $5 is

= 4.8 + 1 × 5.9

= 10.7%

Hence, the same should be considered

You might be interested in
what types of political, economic, and competitive challenges does MTV networks international face by operating worldwide?​
Marysya12 [62]

<u>Explanation:</u>

Remember, MTV is a cable TV company initially founded in the United States.

Political challenges:

There may be differences in administrative costs in each country of operations. For example, the manner and value of taxes paid in the USA may be different in another country like France.

Economic challenges:

The level of economic growth may affect the amount and number of people who spend on entertainment leading to a decline in revenue and an increased need for aggressive marketing campaigns.

Competitive challenges:

Each country may already have other cable TV companies that a percent of the market share and so this it becomes a challenge to compete with these domestic companies.

6 0
2 years ago
A small college employs two economists. Rob has been employed by the college for 15 years and Bill has been employed for one yea
Korvikt [17]

Answer:

E. efficiency wages

Explanation:

Clearly this isn't a discrimination case, as Rob has a robust background with the company (15 years). Although their work output may be the same, Rob's experience justifies the higher pay.

This is one form of efficiency wage theory, holding that higher wages lead to increased employee productivity. This way, Rob gets an incentive for staying with the company.

5 0
2 years ago
The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Presen
irakobra [83]

Answer:

a, Journal Entries to record transactions

Account Titles                 Debit           Credit

Cash                                 $5,412.36

Cash Short and Over      $0.71

($5,413.07 - $5,412.36)  

Sales                                                   $5,413.07

The actual cash in cash register is debited to cash account and cash receipts per cash register tally is credited to sales account and the balancing figure is debited or credited to Cash short and over account.

b. Journal Entries to record transactions

Account Titles                 Debit           Credit

Cash                                $3,712.95

Cash Short and Over                            $0.79

(3,712.95 - 3,712.16)

Sales                                                      $3,712.16

7 0
2 years ago
A credit card issuer charges an APR of 19.56%, and its billing cycle is 30 days long. What is its periodic interest rate?
Gelneren [198K]
<span> 1.60657%. this is the answer </span>
8 0
2 years ago
Read 2 more answers
Julie ling worked as a customer service representative in the billing department of novell, inc. when questions arose about ling
Alexxandr [17]
<span>The court should rule in favor of the company, given clearly outlined policies and a counseling session. Documentation and expectations were stated, and the behavior continued beyond the counseling session. Monitoring her behavior as indicated seemed within the company's discretion.</span>
8 0
2 years ago
Other questions:
  • Free contract is the _____.rivalry among sellers to attract customers while lowering costs concept that people may decide what a
    11·2 answers
  • Rayya Co. purchases a machine for $105,000 on January 1, 2019. Straight-line depreciation is taken each year for four years assu
    15·1 answer
  • A deculturation strategy of merging two corporate cultures should be applied:A. when employees at the acquired company willingly
    12·1 answer
  • The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $ 77,800 Accounts receivable 55,000 I
    14·1 answer
  • Use your knowledge of the different concepts related to the communication process to classify the following statement or situati
    7·1 answer
  • Which tasks are done by both historians and detectives? Check all that apply.
    6·2 answers
  • Juan purchased shares in ABC company for​ $5,000 three years ago. During these three years he received​ $600 in dividends. He ju
    7·1 answer
  • The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses i
    10·1 answer
  • Woodland Lake Manufacturing has a new project that requires $652,000 of equipment. What is the depreciation in Year 5 of this pr
    14·1 answer
  • In a sell or process further decision, which of the following costs is relevant?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!