Answer: Absolute reference
Explanation:
When working on the computer system using Microsoft Excel and the operator wants to fix the position of a chosen cell in any formula in order for there not to be a change in value whenever the cell is changed or when the formula is copied to other sheets or cells, ABSOLUTE REFERENCE is used.
To use absolute reference, the dollar (“$”) sign is placed before and after the name of the column of the chosen cell. It can also be done by typing F4 key as this will cover the column name with the dollar sign. Since Ellen's monthly income is thesame, she can use an absolute reference.
Answer:
CCC's new required rate of return is 16.5%
Explanation:
in the first we need to determine the risk free rate using the Capital Asset Pricing Model formula of Miller and Modgiliani as shown below
required return=Rf+beta*(average market return-Rf)
Rf is the risk free rate that is unknown
Beta is 1.5
average market return is 10%
required rate of return is 12%
Rf?
12%=Rf+1.5*(10%-Rf)
12%=Rf+15%-1.5Rf
1.5Rf-Rf=15%-12%
0.5Rf=3%
Rf=3%/0.5
Rf=6%
Average rate of 10% has now increased by 30% i.e 10%*(1+30%)=13%
Required rate of return=6%+1.5*(13%-6%)
=6%+1.5*7%
=6%+10.5%=16.5%
