If the risk-free rate is 5.60 percent and the risk premium is 4.6 percent, what is the required return?

Answers

Answer 1

Answer:

Required return = 10.2 %

Explanation:

Given:

Risk-free rate = 5.6 %

Risk premium = 4.6 %

Find:

Required return

Computation:

Required return = Risk-free rate + Risk premium

Required return = 5.6 % + 4.6 %

Required return = 10.2 %


Related Questions

The following labor standards have been established for a particular product:
Standard labor-hours per unit of output 9.0 hours
Standard labor rate $ 15.10 per hour
-
The following data pertain to operations concerning the product for the last month:
Actual hours worked 8,100 hours
Actual total labor cost $ 119,880
Actual output 800 units
What is the labor rate variance for the month?
11160F
2430F
13320U

Answers

Answer:

$2,430F

Explanation:

The formulae for labor rate variance is given as (Actual rate - Standard rate) × Actual hours worked.

Labor rate variance = (Actual rate - Standard rate) × Actual hours worked

Given that;

Actual rate = Actual total labor cost ÷ Actual hours worked

= $119,880 ÷ 8,100

= $14.8 per hour

Standard rate = $15.10 per hour

Actual hours worked = 8,100

Labor rate variance = ($14.8 - $15.10) × 8,100

Labor rate variance $2,430F

1. Use the first three tools of monetary policv to illustrate how the Federal Reserve would expand production within the economy.

Answers

Djhdndndndnns and piper have to go to heaven

Given the lack of formal structure, how important do you think Gore’s informal structure becomes?

Answers

Answer:

The lack of a formal structure makes Gore's informal structure more important as it creates social bonds among workers, which help to propel productivity in the workplace.

Explanation:

Gore's informal structure encourages the creation of rapport among workers outside the workplace.  The social relationships that are developed by the workers enable them to tackle challenges and ensure the smooth running of the organization.  Workers' morale is boosted through social relationships.  Cohesion is created with social bonding and understanding.  This helps the workers to work together to achieve organizational goals without the benefit of any formal structure.

The lack of formal structure makes Gore's informal structure more important for organizational processes, as it narrows social and professional relationships within a company.

Some advantages of the informal structure:

Greater organizational communication.Faster decision making.Increased motivation.Conflict reduction.Increased innovation and creativity.

Therefore, the informal structure makes an organization more flexible, where employees feel more motivated to carry out innovative and productive work with the internal environment more focused on employee development.

Learn more here:

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Continuous innovation products are the most typical forms of innovation we see among new products every year. The primary reason a brand manager would support innovation investment in such products is:_______

a. Wholesalers more likely to stock larger inventory levels
b. Greater profit per unit
c. All are valid options
d. Longer product life cycle
e. Lower investment cost

Answers

Answer:

d. Longer product life cycle

Explanation:

Continuous innovation products are the most typical forms of innovation we see among new products every year. The primary reason a brand manager would support innovation investment in such products is Longer product life cycle. In this case of continuous product innovation, the product life cycle is longer in comparison to the existing ones and this is based on the factor that it possess additional factors or attributes that will contribute towards the same.

EZCUBE Corp. is 55% financed with long-term bonds and 45% with common equity. The debt securities have a beta of .20. The company’s equity beta is 1.20. What is EZCUBE’s asset beta?

Answers

Answer:

Asset Beta is 0.65

Explanation:

The formula for asset beta is given below:

Asset beta=Bd*(D/V)+Be*(E/V)

Bd=debt beta=0.20

D/V=debt value=55%

Be=equity beta=1.20

E/V=equity value=45%

Asset Beta=(0.20*55%)+(1.20*45%)

Asset Beta=0.11 +0.54

Asset Beta=0.65

Suppose that the coupon rate for a TIPS is 4%. Suppose further that an investor purchases $50,000 of par value initial principal) of this issue today.
(1) What is the dollar coupon interest that will be paid in cash at the end of the first six months if the current rate of inflation is 3.25%?
(2) What is the dollar coupon interest that will be paid in cash at the end of the first year if the rate of inflation increases to 3.75% six month later?

Answers

Answer:

1. $1,016.25

2. $1,035.30

Explanation:

Dollar coupon interest = Par value * (1+inflation/2)*coupon rate/2

1. Dollar coupon interest = 50000* (1+3.25%/2)*4%/2

Dollar coupon interest = 50,000*(1+3.25%/2)*4%/2

Dollar coupon interest = 50,000*1.01625*0.02

Dollar coupon interest = $1,016.25

2. Dollar coupon interest = 50,000*(1+3.25%/2)*(1+3.75%/2)*4%/2

Dollar coupon interest = 50,000*1.01625*1.01875*0.02

Dollar coupon interest = 1035.3046875

Dollar coupon interest = $1,035.30

A restructuring of operations that ____ the difference between a foreign currency's inflows and outflows may ____ economic exposure.
A. reduces; increase
B. increases; reduce
C. reduces; reduce
D. reduces; increase AND increases; reduce

Answers

Answer:

C. reduces; reduce

Explanation:

When there are an inflow and outflow of capital with respect to the foreign as an in and out of an economy so this represents a major and important aspect of the globalization. Simultaneously these type of inflows and outflows important impact the depreciation and the appreciation of the currency of the country in terms of foreign exchange reserves that directly impacted

Therefore the correct option is c.

State with brief reason whether the following statements are true, false, or uncertain:a. In the presence of heteroscedasticity OLS estimators are biased as well as inefficient.b. If heteroscedasticity is present, the conventional t and F tests are invalid.c. In the presence of heteroscedasticity the usual OLS method always overestimates the standard errors of estimators.d. If residuals estimated from an OLS regression exhibit a systematic pattern, it means heteroscedasticity is present in the data.e. There is no general test of heteroscedasticity that is free of any assumption about which variable the error term is correlated with.f. If a regression model is mis-specified (e.g., an important variable is omitted), the OLS residuals will show a distinct pattern.g. If a regressor that has nonconstant variance is (incorrectly) omitted from a model, the (OLS) residuals will be heteroscedastic.

Answers

Answer:

Explanation:Djrjjrjrhe

In the presence of heteroscedasticity OLS estimators are biased as well as inefficient is a FALSE statment.

What is heteroscedasticity?

If every variable in a sequential manner has the same finite variance, the succession is homoscedastic. Another name for this is the homogeneity of volatility. Heteroscedasticity is the equivalent concept. Along these used forms include homoskedasticity as well as heteroskedasticity.

b. If heteroscedasticity is present, the conventional t and F tests are invalid in a TRUE statment.

c. In the presence of heteroscedasticity the usual OLS method always overestimates the standard errors of estimators as a FALSE statment.

D. If residuals estimated from an OLS regression exhibit a systematic pattern, it means heteroscedasticity is present in the data  is a FALSE statment.

e. "There is no general test of heteroscedasticity that is free of any assumption about which variable the error term is correlated with.f. If a regression model is misspecified (e.g., an important variable is omitted), the OLS residuals will show a distinct pattern.g. If a regressor that has nonconstant variance is (incorrectly) omitted from a model, the (OLS) residuals will be heteroscedastic" is a TRUE statment

Learn more about heteroscedasticity, Here:

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According to most large company CFOs, SOX has

Answers

Answer: increased investor confidence

Explanation: accounting

Why is it important to understand that the amount cash paid for taxes is different than the amount of income tax expense?

Answers

Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

Explanation:

Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.

While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.

The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

Solomon Services Company has 69 employees, 29 of whom are assigned to Division A and 40 to Division B. Solomon incurred $413,310 of fringe benefits cost during 2018. Required: Determine the amount of the fringe benefits cost to be allocated to Division A and to Division B.

Answers

Answer:

Division A - $173,710Division B - $239,600

Explanation:

First determine the fringe benefits per employee for the whole company;

= 413,310 / 69

= $5,990 per employee

Division A has 29 employees so the fringe benefit cost is;

= 29 * 5,990

= $173,710

Division B has 40 employees so the fringe benefit cost is;

= 40 * 5,990

= $239,600

How long do financial records remain on your credit report?

Answers

Answer:   Approximately seven years

HOPE U HAD A GREAT THANKSGIVING <3

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld?
federal tax of $92
Social Security tax that is 6.2% of his gross pay
Medicare tax that is 1.45% of his gross pay
state tax that is 22% of his federal tax
a.
$82.66
b.
$129.13
c.
$164.01
d.
$174.66


Please select the best answer from the choices provided

Answers

Answer:

$174.66 which is d on edge

Explanation:

i studied very hard and i made a 100

The gross profit method is most commonly used to:_______ a. estimate the cost of inventory from incomplete records. b. determine the exact cost of inventory. c. develop a sales budget. d. replace the year-end physical inventory.

Answers

Answer:

a. estimate the cost of inventory from incomplete records.

Explanation:

The gross profit method is used to estimate the cost of inventory from incomplete records. This is done by determining the amount of gross profit using the Sales Revenue and the Gross Profit Margin. Then finding the difference between the Cost of Goods available for sale and this Gross Profit to reach to the estimated cost of inventory.

Suppose you win a small lottery and you are given the following choice: You can receive (1)an immediate payment of $10,000 or (2)two annual payments,each in the amount of $5,200,with the first payment coming one year from now,and the second payment coming two years from now.You would choose to take the immediate payment of $10,000 if the interest rate is:________.
A) 2 percent,but not if the interest rate is 1 percent.
B) 3 percent,but not if the interest rate is 2 percent.
C) 4 percent,but not if the interest rate is 3 percent.
D) 5 percent,but not if the interest rate is 4 percent.

Answers

Answer: B) 3 percent, but not if the interest rate is 2 percent.

Explanation:

Assuming the interest rate is 1%, the present value of the two year payments is;

= (5,200 / ( 1 + 1%)) +  (5,200 / ( 1 + 1%)²)

= $10,246.05

Assuming rate is 2%.

= (5,200 / ( 1 + 2%)) +  (5,200 / ( 1 + 2%)²)

= $10,096.12

Assuming rate is 3%

= (5,200 / ( 1 + 3%)) +  (5,200 / ( 1 + 3%)²)

= $9,950.04

At 3%, the present value of the annual payment is less than the value you could be paid today so you would take the $10,000 instead.

At 2% however, the present value of the annual payments is more than the value you could collect today so you would not take the $10,000.

benefits are an important aspect of employee compensation and they involve the direct financial payments employees receive for remaining with an employer.

true or false

Answers

True I think
If not lemme know :)

The balance in the prepaid rent account before adjustment at the end of the year is $16,212, which represents 6 months' rent paid on December 1. The adjusting entry required on December 31 is to:____.a. debit Rent Expense, $12,000; credit Prepaid Rent $12,000.b. debit Prepaid Rent, $6,000; credit Rent Expense, $6,000.c. debit Rent Expense, $6,000; credit Prepaid Rent, $6,000. d. debit Prepaid Rent, $12,000; credit Rent Expense, $12,000.e. none of these answers are correct.

Answers

Answer: e. none of these answers are correct.

Explanation:

Going by the accrual basis in Accounting, expenses should be recorded only when incurred.

Rent expense for the year therefore will be the rent incurred for the year which is for the month of December alone in this question as the rent was paid on December 1.

The rent for December will be deducted from the Prepaid expense account.

Rent per month is;

= 16,212/6

= $2,702 per month

Correct entry will be;

Date               Details                                                     Debit               Credit

Dec. 31           Rent Expense                                        $2,702

                       Prepaid Rent                                                                   $2,702

Discuss the FOUR (4) P’s of marketing by Alibaba.

Answers

Answer:

product, price, place, promotion

Explanation:

which product do your customers need

the price of the product

the place

the promotion for performance

As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches, any mention of the country makes people think of sun and sand. This is an example of ________.
A) collectivism
B) target market impact
C) ethnocentric thinking
D) country-of-origin effect
E) cognitive dissonance

Answers

D) country-of-origin effect I hope this helps

You are being actively recruited by a banking institution with a reputation for a weak corporate culture. What aspect of this bank's culture would most STRONGLY impact your decision to accept or reject an offer from this company?A. The company has revered traditions, values, and behavioral norms that mobilize commitment to executing the chosen strategy. B. The company is unreceptive to change, and people who champion new ways of doing things do not last long on the job. C. There is virtually no employee support for the company's strategic vision and strategy. D. The company has a dearth of intellectual capital and shows inattention to building core competencies. E. There is no code of ethics, and the company has little regard for high ethical standards.

Answers

Answer: E. There is no code of ethics, and the company has little regard for high ethical standards.

Explanation:

While all the options are good enough to impart one's decision to avoid this company, ethics is simply non-negotiable. This is a banking institution which means that they handle people's money. If they engage in unethical ways and show little regard for high ethical standards, people will be hurt directly.

In order not to be complicit in this, it is best to avoid the company because banking institutions without codes of ethics or adherence to high ethical standards never last long.

If an investor purchases a bond when its current yield is higher than the coupon rate, then the bond's price will be expected to::_______

a. increase over time, reaching par value at maturity
b. exceed the face value at maturity
c. be less than the face value at maturity
d. decline over time, reaching par value at maturity

Answers

Answer:

a. increase over time, reaching par value at maturity

Explanation:

If current yield is more than coupon rate, it means that the bond price is less than par value, as time to maturity decreases bond value amortizes to par value. Thus, If an investor purchases a bond when its current yield is higher than the coupon rate, then the bond's price will be expected to increase over time, reaching par value at maturity.

Studies on a machine that forges cylinder barrels for Volkswagen aftermarket performance engines indicate that when it is forging 103 mm diameter cylinders, the process standard deviation is 0.20 mm. The cylinders have a specification of 103 mm plus 0.75 mm or minus 1.25 mm. What is the minimum process capability index (Cpk)? a. 1.25 b. 1 c. 0.75 d. 0.67 e. 2.08

Answers

Answer:

a. 1.25

Explanation:

Calculation for the minimum process capability index (Cpk)

First step is to calculate the USL which is Upper Specification limit

Upper Specification limit=103+0.75

Upper Specification limit= 103.75

Second Step is to calculate the LSL which is Lower Specification limit

Lower Specification limit = 103-1.75

Lower Specification limit= 101.25

Last step is to calculate the minimum process capability index (Cpk) using this formula

Minimum Process capability index= [(M-LSL)/3sd; (USL-M)/3sd]

Where,

Actual Mean = M=103

Standard deviation= sd= 0.2

Hence,

Minimum Process capability index= 1.25

Therefore the minimum process capability index (Cpk) will be 1.25

NoreCorp wants to meet a moral minimum of ethical behavior

Answers

The company could offer higher-quality products to customers for lower cost, positively impacting customers.

Precision Tool requires a 15 percent rate of return and uses straight-line depreciation to a zero book value over the life of its equipment. A Machine it is using has an initial cost of $892,000, annual operating cash flow (OCF) of - $26,300, and a 4-year life. The machine will be replaced at the end of its useful life. What is the EAC of the machine? A- $338,737 B- $355,702 C- $376,907 D- $436,864

Answers

Answer:

A -$338,737

Explanation:

initial outlay = -$892,000

cash flows year 1 - 4 = -$26,300

first we must determine the present value of the machine and its associated cash flows

PV = -$892,000 - $26,300/1.15 - $26,300/1.15² - $26,300/1.15³ - $26,300/1.15⁴ = -$967,085.93

equivalent annual cost (EAC) = (NPV x i) / [1 - (1 + i)⁻ⁿ] = (-$967,085.93 x 15%) / [1 - (1 + 15%)⁻⁴] = -$338,736.69 ≈ -$338,737

Economic profit is:_______.
a. always larger than accounting profit.
b. equal to the difference between accounting profit and implicit costs.
c. the sum of accounting profit and implicit costs.
d. equal to the difference between total revenue and implicit costs.

Answers

Answer:

b. equal to the difference between accounting profit and implicit costs.

Explanation:

Economic profit is equal to the difference between accounting profit and implicit costs.

Accounting profit = Total Revenue- Explicit Cost

Economic profit = Accounting profit - Implicit cost

Economic profit will be less than or equal to the accounting profit.

According to the IRR decision rule, you accept a project if:_________
a) the IRR is greater than or equal to 1.0.
b) the IRR is greater than or equal to the required return (i.e., cost of capital).
c) None of these are correct.
d) the IRR is less than the required return (i.e., cost of capital).
e) the IRR is greater than or equal to 0%.

Answers

Answer:

(d ) .the IRR is less than the required return.

A fixed asset with a cost of $31,588 and accumulated depreciation of $28,429.20 is sold for $5369.96. What is the amount of gain or loss on disposal of the fixed asset

Answers

Answer:

$2,238.16

Explanation:

In the disposal of assets, gain or loss will be a comparison between the book value and the selling price.

Book value is the asset costs minus accumulated depreciation.

in this case, the book value will be

= Asset cost - Depreciation

= $31,588- $28,429.20

=$3,158.8 is the book value.

Gain or loss = selling price- book value

=$5,369.96 - $3,158.8

=$2,238.16

A gain of$2,238.16 will be gain from that sale.

Endogenous growth theory rejects the assumption of exogenous:_________.a. population growth rates. b. production functions. c. rates of depreciation. d. technological change.

Answers

Answer:

d. technological change.

Explanation:

Endogenous growth theory can be defined as a theory which states that the growth of a company is directly related to its internal factors such as number of employees, policies, etc and not external factors.

Endogenous growth theory rejects the assumption of exogenous technological change.

What is the term used to describe the linking of key product or service requirements to process capabilities?

Answers

Answer:

Product or service profiling.

Explanation:

Product or service profiling is the term used to describe the linking of key product or service requirements to process capabilities.

Generally, most organizations and business owners use the product or service profiling strategy to enhance consistency through the identification of their key services or product line and as such are avail the opportunity to select the appropriate process, procedures and techniques to achieve their goals and objectives successfully.

WILL MARK THE BRAINIEST!!!

Think about how human resources are handled at the company you work for, or one you have worked for in the past. Must write seven sentences and answer all three questions completely !!!

1. What steps of the human resources cycle does the company handle well? Why?

2. What steps of the human resources cycle are handled poorly? Why?

3. How is culture impacted by the Human Resources department?

Answers

Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work.
and that is all!!
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