Carson's estimated WACC is 7.02%. This represents the required return for the company to meet its obligations to both debt and equity holders.
To estimate Carson's weighted average cost of capital (WACC), we need to calculate the costs of debt and equity and then apply weights based on the target capital structure.
Cost of Debt (rd):
Carson can borrow an unlimited amount at a cost of 9% (rd = 0.09).
Cost of Equity (re):
The cost of equity can be estimated using the dividend discount model (DDM):
re = (Dividend / Current Stock Price) + Dividend Growth Rate
Given:
Last common stock dividend = $1.50
Dividend for this year = $1.59
Dividend growth rate = Constant rate
First, we need to calculate the growth rate using the dividend growth formula:
Dividend Growth Rate = (Dividend for this year - Last common stock dividend) / Last common stock dividend
Dividend Growth Rate = ($1.59 - $1.50) / $1.50 = 0.06 or 6%
Next, we can calculate the cost of equity:
re = ($1.59 / $25) + 0.06 = 0.0636 or 6.36%
Weighted Average Cost of Capital (WACC):
Given the target capital structure of 25% debt and 75% common equity, we can calculate the WACC using the formula:
WACC = (Weight of Debt * Cost of Debt) + (Weight of Equity * Cost of Equity)
WACC = (0.25 * 0.09) + (0.75 * 0.0636) = 0.0225 + 0.0477 = 0.0702 or 7.02%
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What position would be the highest in a company's hierarchy?
A). director of finance
B). finance manager
C). accountant
D). finance administrative assistant
Answer: D. Finance administrative assistant
Explanation: search all the answers up to see if it matches CEO or is closet to the CEO job
The bullwhip effect is mainifested by _____________ variation in the supply chain. a. decreasing downstream b. decreasing upstream c. increasing downstream d. increasing upstream
The bullwhip effect is manifested by (d) increasing upstream variation in the supply chain.
What is the bullwhip effect in the supply chain?The bullwhip effect is a phenomenon that occurs in the supply chain when orders to suppliers have a tendency to vary more than sales to buyers, which amplifies the unpredictability of demand upstream. As one advances higher up the supply chain, this contributes to larger inventory swings in reaction to changes in consumer demand. The idea is often referred to as the Forrester effect because it was initially introduced in Jay Forrester's Industrial Dynamics (1961). The tendency for material orders to vary more than demand signals has been noted, and this tendency tends to get worse the further upstream a company is in a supply chain.
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Noel was assigned a group project in class. What benefit will Noel get from working with a team?
A Independence
B Increased creativity
D Easy class credit
C Easy decision making
Answer:
B Increased creativity
Explanation: got test
Disadvantages of choosing a job that is extremely popular or in demand
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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The total of the figures on the left side of a Cash account is$36,700. The total of the figures on the right side is $16,250.The balance of this account:Multiple Choiceis $20,450 and would be recorded on the right side of the account.is $52,950 and would be recorded on the left side of the account.is $20,450 and would be recorded on the left side of the account.is $52,950 and would be recorded on the right side of the account.
The balance of this account is $20,450 and would be recorded on the left side of the account.
A Cash account is an account that shows the cash balance of a business at a specific point in time. The account is divided into two sides: the left side for debit transactions, and the right side for credit transactions. The total figures on the left side of the account represent the total amount of cash that the business has received
In this case, the total of the figures on the left side of the account is $36,700 which represents the total amount of cash that the business has received, and the total of the figures on the right side is $16,250 which represents the total amount of cash that the business has paid out.
The balance of the account is the difference between the total of the figures on the left side and the total of the figures on the right side, which is $36,700 - $16,250 = $20,450. This balance would be recorded on the left side of the account as it represents the cash that the business has received.
Therefore, the correct answer is: is $20,450 and would be recorded on the left side of the account.
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Formulate this problem as a linear programming model to minimize the total production cost. You should formulate the problem algebraically. Clearly define the decision variables and their units. Express the objective function and the constraints as linear functions of the decision variables that you define. You should also identify each constraint by attaching a short descriptive label to it (e.g., Local News, or Local and National News, etc.).
Implement the above formulation in an Excel spreadsheet and solve it using Excel Solver. Submit the Excel file with an answer report generated and reported.
The problem of minimizing total production cost can be formulated as a linear programming model with decision variables representing the quantities of different production inputs. The objective is to minimize the total cost, and the constraints define the limitations and requirements of the production process.
How can we define the decision variables, objective function, and constraints in the linear programming model?Decision Variables: Let's denote the decision variables as \(x_1, x_2, \ldots, x_n\), where each \(x_i\) represents the quantity of a specific production input (e.g., raw materials, labor, machines) measured in appropriate units (e.g., kilograms, hours, units).
Objective Function: The objective is to minimize the total production cost, which can be expressed as a linear function of the decision variables. Let's assume that the cost coefficient for each production input is \(c_1, c_2, \ldots, c_n\) respectively. The objective function can be written as:
\(\[\text{Minimize: } Z = c_1x_1 + c_2x_2 + \ldots + c_nx_n\]\)
Constraints: The constraints represent the limitations and requirements of the production process.
These can include restrictions on the availability of production inputs, production capacity, quality standards, or demand. Let's assume we have \(m\) constraints, which can be expressed as linear functions of the decision variables. Each constraint is labeled as \(C_1, C_2, \ldots, C_m\) respectively. The general form of a constraint is:
\(\[C_i: a_{i1}x_1 + a_{i2}x_2 + \ldots + a_{in}x_n \leq b_i\]\)
where \(a_{ij}\) represents the coefficient of decision variable \(x_j\) in constraint \(C_i\), and \(b_i\) is the constant on the right-hand side of the inequality.
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in what ways might managers make use of maslow's hierarchy of needs in motivating employees?
Managers can make use of Maslow's Hierarchy of Needs in motivating employees by understanding and addressing their fundamental needs.
Here are a few ways managers can apply this theory:
Physiological needs: Managers can ensure employees have a safe and comfortable work environment, access to basic amenities, and fair compensation to fulfill their physiological needs.Safety needs: Managers can provide job security, clear policies and procedures, and a safe working environment to address employees' safety needs and reduce anxiety.Social needs: Managers can encourage team building activities, foster a positive work culture, and promote collaboration to fulfill employees' social needs for belongingness and affiliation.Esteem needs: Managers can recognize and appreciate employees' contributions, provide opportunities for skill development, and offer promotions or advancement to fulfill esteem needs and enhance self-worth.Self-actualization needs: Managers can support employees' personal growth and development, provide challenging tasks, and encourage autonomy and creativity to help employees reach their full potential.To know more about employees refer to-
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What type of loan uses real estate for security?
A point of sale
A line of credit
. A disclaimer (it’s not disclaimer)
A second mortgage
Answer:
A second mortgage loan uses real estate for security
A 20-unit apartment building sells for $5 million. The property can bring in $400,000 in annual gross income. What is the gross income multiplier (GIM)
The gross income multiplier (GIM) is 12.5.
Gross income multiplier (GIM)Using this formula
Gross income multiplier (GIM)=Sales price/Annual gross income
Where:
Sales price=$5million
Annual gross income=$400,000
Let plug in the formula
Gross income multiplier (GIM)=$5 million/$400,000
Gross income multiplier (GIM)=12.5
Inconclusion the gross income multiplier (GIM) is 12.5.
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What is the hazard? Chris works for a city public works department. One hot afternoon the temperature outside reached 92 degrees. While Chris was shoveling dirt in a vacant lot, he started to feel dizzy and disoriented. He fainted due to the heat.
Answer: dehydration
Explanation:
Answer:
dehydration and heat exhaustion.
Explanation:
I hope this helps! :)
george has a gross estate valued at $1.8 million. his estate consists almost entirely of publicly held stock owned solely by him. he owes no debts. george's only living relative is a nephew whom he hasn't seen or heard from in 30 years. george has not executed a valid will. if george were to die in the current year without change in any of the related facts, which one of the following is a disadvantage of the probate process for george? a) it will not allow distribution of his estate without incurring considerable cost in attempting to locate his nephew. b) it will not allow george's estate to claim a marital deduction to reduce the taxable estate. c) it will not allow payment of a personal representative's fee to reduce his estate tax so that it can be covered by the allowable unified credit. d) it will not allow george's estate to be subject to court supervision regarding payment of claims and distribution.
It will not allow distribution of his estate without incurring considerable cost in attempting to locate his nephew.
Which are the disadvantage of the probate process?
1. Cost: The probate process can be time consuming and expensive. Probate fees and costs can add up quickly, and the process can be delayed due to paperwork and other issues.
2. Time: The probate process can take a long time to complete, often lasting for months or even years in some cases.
3. Complexity: The probate process can be complex and confusing, especially for those unfamiliar with the process.
4. Exposure: During the probate process, the estate will be exposed to creditors and other claims, which can reduce the amount of money available to heirs and beneficiaries.
5. Privacy: The probate process is a matter of public record, meaning that the details of the estate and the proceedings are a matter of public knowledge.
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Compare and contrast the elements of centralization and formalization within the Arab Alliance and the IDF. Explain how those inherent differences may have affected the outcome of the war.
The correct answer to this open question is the following.
The elements of centralization and formalization within the Arab Alliance and the IDF were key to understand the Israeli victory over the Arab army. Without a doubt, those inherent differences affected the outcome of the war.
The Arab Alliance was formed by soldiers from different Arab states such as Jordan, Syria, Saudi Arabia, Tunisia, Algeria, Morocco, and Egypt. The alliance had strong numbers, good supplies and weapons, machines, tanks, and the support of the Soviet Union.
However, the Israeli al Defense Force (IDF) won the war by capturing the Gaza Strip, the West Bank, and the Sinai Peninsula. And the Israelis could do that because they had better training, a different mentality, and a modern strategic approach.
Israel not only recruited loyal soldiers, as was the main cause for the Arabs. Israel recruited the best talent for each military position and trained until they became the best. Lack of this kind of recruiting and training was notorious in the Arab alliance.
Another factor that favored Israel was the Structure of Command and Control, emphasizing combat aspects such as strategy, swiftness, agility, improvisation, flexibility, and decision making on the move. Totally different from the bureaucratic Arab approach in the line of command.
That is why Israel won the Six-Day War that was fought from June 5-10, 1967.
PROFIT/LOSS = TOTAL REVENUE - TOTAL COSTS
lan set up a taxi firm one month ago. He has calculated that his total monthly revenue was £2400.
He has added his costs together for the first month and they came to £2800. However, he spent
£1000 on a car for the business that he will not need to spend again.
1) What was his profit/loss for the month?
For the month it was €
1
2) Next month, what will his profit/loss be?
3) List 2 things that could happen that would increase his costs?
Answer:
What's the question? :) I'm an econ major btw.
Explanation:
Most corporations in the S&P 500 index buy back their own stock, and, as a whole, S&P500 corporations return more cash to the market via stock buy backs than via dividend distributions.
a. true
b. false
The answer to this question is "a. true". In recent years, stock buybacks have become a popular way for companies to return cash to their shareholders. The S&P 500 is a market-capitalization-weighted index that includes 500 large-cap American companies.
Many of these companies have been using their profits to buy back their own stock, which reduces the number of outstanding shares and increases the value of the remaining shares. According to data from S&P Dow Jones Indices, S&P 500 companies spent a record $806 billion on stock buybacks in 2018. This amount was more than double the $384 billion they paid out in dividends.There are several reasons why companies choose to buy back their own stock rather than paying out dividends. One reason is that buybacks can be more tax-efficient for shareholders, especially if the company has a high dividend tax rate. Another reason is that buybacks can signal to investors that the company has confidence in its future earnings and growth prospects. However, some critics argue that buybacks can be short-sighted and can divert resources away from long-term investments and employee compensation. Overall, it is important for investors to consider a company's buyback history and strategy before making investment decisions.
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pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15 % 32 % Bond fund (B) 9 % 23 % The correlation between the fund returns is 0.15. Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The standard deviation of the portfolio is 7.09%.
What is the proportion of stock in minimum risky portfolio?= [(0.23)² - (0.32*0.23*0.15)] / [(0.32)² + (0.23)² - (2*0.32*0.23*0.15)]
= 0.31421708452
= 31.42%
What is proportion of bond fund in minimum risky portfolio?= 1 - 0.31421708452
= 0.68578291548
= 68.58%
What is the expected return of minimum risky portfolio?= 0.3142*15% + 0.6858*9%
= 0.04713 + 0.061722
= 0.108852
What is the standard deviation of your portfolio?= ((0.6858)² * (0.23)² * (0.3142)² * (0.33)²) + ((2 * 0.6858 * 0.3142 * 0.32 * 0.23 * 0.15))^0.5
= (0.00026747972 + 0.00475776218)^0.5
= 0.0050252419^0.5
= 0.0708889406
= 7.09%
Therefore, the standard deviation of the portfolio is 7.09%.
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Integration is summation operation performed on discrete random variables
The options available are:
A. No
B. Yes
C. None of the options
D. Both A and B
Answer:
Yes
Explanation:
Given that, integration involves integral calculus to give numbers processes such that it defines characteristics like area, sizes, volumes, length, and other similar concepts that have a measurable number of practical values by summing together smaller data.
Integration is one of the two fundamental operations of calculus. The other one is differentiation which operates inversely.
Hence, the statement is correct.
what is the law of demand and supply
Answer:The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines what effect the relationship between the availability of a particular product and the desire (or demand) for that product has on its price.
Explanation:
A business proposition that joins firms in completely unrelated industries is called a(n) _________________________________________.
A joint venture between companies in entirely different areas is referred to as a Conglomerate Mergers.
A conglomerate merger occurs when two companies merge and are engaged in completely unrelated commercial endeavors. These mergers often include businesses from several industries or from various geographical regions.
Conglomerate mergers can be either pure or mixed. Companies operating in different markets and with no connection to one another are included in a pure conglomerate merger. Companies wanting to extend their product ranges or target markets are included in mixed conglomerate mergers.
For Example: The merger of the Walt Disney Company with the American Broadcasting Company is one example of a conglomerate merger.
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a company purchased bonds on july 1, 2024, for $274,885. this price represents a market rate of 6% on bonds that have a face amount of $250,000, have a stated rate of 8%, pay semiannual interest, and mature in 6 years. what is the amortized cost of the bonds as of december 31, 2024?
The amortized cost of the bonds as of December 31, 2024, is $202,460.90.
The face amount of the bonds is $250,000 and the stated rate is 8%, which means that the annual interest payment is $20,000 (8% of $250,000). Since the bonds pay semiannual interest, the semiannual interest payment is $10,000 ($20,000 / 2).
The bonds were purchased on July 1, 2024, which means that one semiannual interest payment has already been made. Therefore, the number of semiannual periods remaining until maturity is 11 (6 years x 2 semiannual periods per year - 1 semiannual period already elapsed).
To calculate the amortized cost of the bonds as of December 31, 2024, we can use the following formula:
Amortized Cost = Purchase Price + (Semiannual Interest Payment - Effective Interest) x Number of Periods
Where:
Purchase Price = the price paid for the bondsEffective Interest = the interest rate that produces the semiannual interest expense that equals the semiannual interest payment based on the carrying amount of the bondsNumber of Periods = the number of semiannual periods remaining until maturityFirst, we need to calculate the effective interest rate. We can use the following formula to calculate the effective interest rate:
Effective Interest = Carrying Amount x Market Interest Rate
Where:
Carrying Amount = Purchase Price + Accumulated Amortization
The market interest rate is 6%, as given in the question. The carrying amount as of July 1, 2024, is the same as the purchase price, which is $274,885. Therefore, the effective interest is:
Effective Interest = $274,885 x 6% = $16,493.10
Using this effective interest rate and the other information calculated above, we can calculate the amortized cost of the bonds as of December 31, 2024, as follows:
Amortized Cost = $274,885 + ($10,000 - $16,493.10) x 11
Amortized Cost = $274,885 - $72,424.10
Amortized Cost = $202,460.90
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If Yes, why is making a profit a good thing?
Answer:
Yes
Explanation:
Making profit is a good thing because Profit equals a company's revenues minus expenses. Earning a profit is important to a small business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business. Companies cannot remain in business without turning a profit.
what effect will a low economic growth have on the country
Answer:
it can lead to national poverty and economy crisis
How does change in cost of energy and raw materials, borrowing and premises affect a house building company
Answer:
A shift in the cost of electricity and raw materials may have a major influence on a home construction firm. For example, if the cost of electricity and raw materials rises, the corporation may have to spend more on these items, resulting in higher production expenses. This rise in manufacturing costs may eventually result in lower profit margins or an increase in the final price of the houses, making them less competitive in the market.
Likewise, changes in borrowing costs might have an influence on the company's profitability. If interest rates rise, the cost of borrowing money to invest in the firm rises, resulting in greater debt-service expenses. This may limit the company's capacity to invest in growth possibilities, which can be negative on long term profitability impact.
Likewise, changes in borrowing costs might have an influence on the company's profitability. If interest rates rise, the cost of borrowing money to invest in the firm rises, resulting in greater debt-service expenses. This may limit the company's capacity to invest in growth possibilities, which might harm long-term profitability.
Changes in facility expenses might also have an impact on the company's profitability. For example, increasing the cost of rent or mortgage payments for the company's offices or facilities may result in increased overheads and lower profitability. Furthermore, if the firm decides to grow or relocate, it may incur considerable upfront expenses, which may have an impact on short-term profitability.
Who do YOU like more
Joseph Biden or Donald Trump?
Please answer with you honest opinion.
Answer:
Explanation:
Joseph biden
Q9. WE Company has completed all operating budgets other than the income statement for 2024. Selected data from these budgets follow.
Sales: $350,000
Purchases of raw materials: $145,000
Ending inventory of raw materials: $15,000
Direct labor: $40,000; Manufacturing overhead: $73,000, including $3,000 of depreciation expense
Selling and administrative expenses: $36,000 including depreciation expense of $1,000; Interest expense: $1,000
Principal payment on note: $2,000; Dividends declared: $2,000 and Income tax rate: 30%
Other information:
Assume that the number of units produced equals the number sold.
Year-end accounts receivable: 4% of 2024 sales.
Year-end accounts payable: 50% of ending inventory of raw materials.
Interest, direct labor, manufacturing overhead, and selling and administrative expenses other than depreciation are paid as incurred.
Dividends declared and income taxes for 2014 will not be paid until 2015.
Instructions
(a) Calculate budgeted cost of goods sold.
(b) Prepare a budgeted income statement for the year ending December 31, 2014.
(c) Prepare a budgeted balance sheet as of December 31, 2014
Answer:
(a) To calculate the budgeted cost of goods sold, we need to use the following formula:
Beginning Inventory of Raw Materials + Purchases of Raw Materials - Ending Inventory of Raw Materials + Direct Labor + Manufacturing Overhead = Total Manufacturing Costs
$0 (assuming no beginning inventory of raw materials) + $145,000 - $15,000 + $40,000 + $73,000 = $243,000
Then, we can use the following formula to calculate the budgeted cost of goods sold:
Total Manufacturing Costs + Beginning Finished Goods Inventory - Ending Finished Goods Inventory = Cost of Goods Sold
$243,000 + $0 - $0 = $243,000
Therefore, the budgeted cost of goods sold is $243,000.
(b) Using the information above, we can prepare a budgeted income statement for the year ending December 31, 2014 as follows:
WE Company
Budgeted Income Statement
For the Year Ending December 31, 2014
Sales $350,000
Cost of Goods Sold $243,000
Gross Profit $107,000
Selling and Administrative Expenses $36,000
Depreciation $1,000
Interest Expense $1,000
Income before Taxes $69,000
Income Tax Expense $20,700
Net Income $48,300
(c) Using the information above, we can prepare a budgeted balance sheet as of December 31, 2014 as follows:
WE Company
Budgeted Balance Sheet
As of December 31, 2014
Assets
Cash TBD
Accounts Receivable TBD
Inventory of Raw Materials $15,000
Finished Goods Inventory TBD
Total Assets TBD
Liabilities and Stockholders' Equity
Accounts Payable TBD
Note Payable TBD
Stockholders' Equity TBD
Total Liabilities and Stockholders' Equity TBD
To complete the budgeted balance sheet, we need additional information such as the amount of cash, accounts receivable, finished goods inventory, note payable, and stockholders' equity.
years will be to the
On a timeline, a goal that will be achieved in
right of one that will be achieved in
years.
A. 16; 12
B. 8; 16
C. 12; 16
D. 8; 12
This question is a bit disorganized and incomplete; here is the complete and organized question:
On a timeline, a goal that will be achieved in _____ years will be to the right of one that will be achieved in _____ years
A. 16; 12
B. 8; 16
C. 12; 16
D. 8; 12
The correct answer is A. 16; 12
Explanation:
The purpose of a timeline is to represent a set of events during time by placing these on chronological order from left to right. This means in the case of goals, these will be organized from the goal that is closest in the future to the one that will take the most time. For example, if one of the goals is to buy a house in 10 years, this should be placed to the right of goals such as getting a degree in 2 years or buying a car in 3 years. Thus, a goal that takes 16 years should be placed to the right of a goal that takes 12 years in a timeline.
Answer: 14;10
Explanation:
A p e x
Match the level of unemployment with the condition of the overall economy. Unemployment equals the natural rate. Cyclical unemployment equals zero. Unemployment is below the natural rate. Unemployment is above the natural rate. Actual GDP is below potential GDP. Actual GDP is equal to potential GDP. Actual GDP is above potential GDP.
Answer:
Note: The organized question is attached as picture
1. Actual GDP is below potential GDP
Level of unemployment: Unemployment is above the natural rate
2. Actual GDP is equal to potential GDP
Level of unemployment: Unemployment equals the natural rate
3. Actual GDP is above potential GDP
Level of unemployment: Unemployment is below the natural rate
Which of these is an example of innovation?
Answer:
The innovations include technological inventions such as wind turbines, photovoltaic cells, concentrated solar power, geothermal energy, ocean wave power and many other emerging innovations.
Explanation:
Trux Inc. is a Wisconsin-based manufacturer of engineered wood building products such as beams and panels. They source wood from a local supplier and ships products to customers all over the United States. In the given scenario, the local supplier is a(n)
Answer:
Stakeholder
Explanation:
The stakeholder refers to the person who has an interest in the company performance except for stock related. It could be employees, suppliers, customers, etc
In the given situation, since it is mentioned that the Trux inc building the products like beams and panels and they take it from a local supplier and sold to a customer so here local supplier is the stakeholder
1. Based on the CAPM, you have found that the required rate of return on Microsoft Inc. stock is 17.74%.
The stock has a beta of 0.6.
If the market risk premium is 6.05%, what is the implied risk-free rate of return?
Can you solve it by using a calculator step by step so I can study it.
The implied risk-free rate of return is approximately 14.11%.
certainly! i can guide you through the steps to solve this problem step by step. to find the implied risk-free rate of return using the capital asset pricing model (capm), you can use the following formula:
required rate of return = risk-free rate + beta * market risk premium
given:
required rate of return = 17.74%
beta = 0.6
market risk premium = 6.05%
let's denote the risk-free rate as "r."
step 1: rearrange the formula to solve for the risk-free rate:
risk-free rate = (required rate of return - beta * market risk premium)
step 2: substitute the given values into the formula:
risk-free rate = (17.74% - 0.6 * 6.05%)
step 3: calculate the expression inside the parentheses:
risk-free rate = (17.74% - 0.6 * 6.05%)
= (17.74% - 3.63%)
step 4: perform the calculation:
risk-free rate = 14.11%
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Before ordering used parts for a repair, a technician
should get
approval from the ____.