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Kazeer [188]
2 years ago
15

A stock has a geometric average return of 14.6 percent and an arithmetic average return of 15.5 percent based on the last 15 yea

rs. What is the estimated average rate of return for the next six years based on Blume's formula?
Business
1 answer:
Bad White [126]2 years ago
7 0

Answer:

15.18%

Explanation:

this problem is solved applying directly te Blume´s formula, which is the next:

R_{t}=\frac{T-1}{N-1}*GeometricAverage+\frac{N-T}{N-1} *ArithmeticAverage

where R is the return, T numbers of years to estimate and N is the observed number of years. So with given data, we have:

R_{t}=\frac{6-1}{15-1}*0.146+\frac{15-6}{15-1} *0.155

R_{t}=15.18%

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Production Processes Manufacturers use several different production processes to create goods and services. This activity is imp
iragen [17]

Answer:

Refining crude oil into gasoline requires the use of chemicals, pressure, and heat to change the chemical makeup of the crude oil into a finished product of gasoline. PROCESS MANUFACTURING: deals with formulas and manufacturing recipes.  

A production plant that serves as a point where workers and robotics bring together all of the components that create automobiles. ASSEMBLY PROCESS: manufactured units follow an assembly line.  

Making steel is a process that cannot be easily stopped and restarted. CONTINUOUS PROCESS: the manufacturing process cannot be easily stopped.  

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8 0
2 years ago
In​ 2014, Amazon considered raising the annual price of its Amazon Prime shipping and​ streaming-video service from​ $79 to​ $99
Alexeev081 [22]

Answer: (c) C-B

Explanation:

8 0
2 years ago
Gabriella strongly prefers a specific brand of gourmet coffee. Since there is only one store in her area that sells her brand, s
omeli [17]

Answer:

A. True

Explanation:

For her it is a specialty good because it not sold everywhere, therefore she makes the extra effort.

7 0
2 years ago
Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of
3241004551 [841]

Answer:

TurnBull's Weighted Average cost of capital is higher by 1.07% if the used common Equity to raised the capital.

Explanation:

First, using the WACC formula and using Retained earnings cost of Capital. we get the following outcome.

WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital

WACC = 45% x 8.33% + 4% x 12.20% + 51% x 14.70% =

WACC = 3.75% + 0.49% + 7.50% = 11.73%

Second, using the WACC formula and using common equity cost of Capital. we get the following outcome.

WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital

WACC = 45% x 8.33% + 4% x 12.20% + 51% x 16.80% =

WACC = 3.75% + 0.49% + 8.57% = 12.80%

Increase Cost using common equity over Retained earnings is (12.80% - 11.73% ) = 1.07%

4 0
2 years ago
Read 2 more answers
Which individual would deserve credit for the success of american imperialist policies?
Leviafan [203]

Answer:

American imperialism

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is a term that refers to the economic,military and cultural influence of the United States on other countries.

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