Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 6%. The market risk premium is 5.5%, and the return on an average stock in the market last year was 15%. What is the estimated cost of common equity using the CAPM?

Answers

Answer 1

The estimated cost of common equity for Booher Book Stores using the CAPM is 10.95%.

What is the estimated cost of common equity for Booher Book Stores using the CAPM?

The capital asset pricing model (CAPM) is used to estimate the cost of common equity, which is the rate of return required by investors to compensate them for the risk associated with investing in the company's stock.

In this case, Booher Book Stores has a beta of 0.8, which means it is less risky than the market as a whole.

The risk-free rate is 4% for the 3-month T-bill, the market risk premium is 5.5%, and the return on an average stock in the market last year was 15%.

Using the CAPM formula, the estimated cost of common equity for Booher Book Stores can be calculated as follows:

Cost of common equity = Risk-free rate + (Beta x Market risk premium)

= 4% + (0.8 x 5.5%)

= 8.4%

Therefore, the estimated cost of common equity for Booher Book Stores using the CAPM is 8.4%.

This indicates the minimum return that the company must provide to its shareholders to compensate them for the risk they undertake by investing in the company's stock.

Learn more about estimated cost

brainly.com/question/14347037

#SPJ11


Related Questions

which of the following is a political risk faced by organizations such as fifa that operate in multiple countries? group of answer choices a. challenges implementing the world trade organization agreements b. uncertain prices for critical commodities c. potential nationalization of invested assets d. failure of countries to pay debt obligations

Answers

The correct answer to your question is: c. potential nationalization of invested assets. This is a political risk faced by organizations like FIFA that operate in multiple countries, as it involves the possibility of a government taking control of their assets within that country .

The political risk faced by organizations such as FIFA that operate in multiple countries is the potential nationalization of invested assets. Nationalization refers to the process in which a government takes over private assets and makes them publicly owned. This can happen when a government feels that foreign investments are threatening their national security or when they want to take control of a strategic industry. Nationalization can lead to significant financial losses for organizations operating in multiple countries as they may lose their assets and investments in the affected countries.

Learn More about nationalization  here :-

https://brainly.com/question/30586880

#SPJ11

Discuss about how improving the fund raising measures at a
future non-profit.

Answers

There are various strategies for improving fund raising measures at a future non-profit, such as diversifying the donor base, expanding the scope of fundraising activities, and improving donor engagement.

One effective approach is to diversify the donor base by targeting individuals, foundations, corporations, and government agencies that are interested in supporting the non-profit's mission. This can be done through networking, outreach, and marketing campaigns that highlight the organization's impact and accomplishments.

Expanding the scope of fundraising activities can also help to increase donations. This can include hosting events, creating online campaigns, or partnering with other organizations to raise awareness and funds for the non-profit's cause.

In addition, improving donor engagement is critical for building long-term relationships and securing recurring donations. This can be achieved by creating personalized communication and marketing strategies that demonstrate the impact of donations and offer opportunities for involvement and feedback.

Ultimately, improving fund raising measures at a future non-profit requires a strategic and integrated approach that prioritizes relationship-building, donor engagement, and diversification of funding sources. By implementing these strategies, the non-profit can increase its financial stability and make a greater impact on its mission.

To know more about fund raising refer here:

https://brainly.com/question/1337637#

#SPJ11

a physical inventory taken on december 31, 2020, resulted in an ending inventory of $1,050,000. jep's markup on cost has remained constant at 32% in recent years. jep suspects that an unusual amount of inventory may have been damaged and disposed of without appropriate tracking. at december 31, 2020, what is the estimated cost of missing inventory?

Answers

The estimated cost of missing inventory is $538,235.30. However, it's important to note that this is just an estimate and further investigation would be necessary to determine the actual cost of missing inventory.

To calculate the estimated cost of missing inventory, we need to use the retail inventory method. The retail inventory method is a way to estimate the cost of inventory by using the ratio of the cost of goods available for sale to the retail price of goods available for sale.

First, we need to determine the cost of goods available for sale. We know the ending inventory at cost is $1,050,000, but we don't have information on the cost of goods sold. However, we can use the retail inventory method to estimate the cost of goods sold.

Let's assume that the total cost of goods available for sale is $3,000,000 (this includes the ending inventory at cost plus the cost of goods sold). We also know that Jep's markup on cost is 32%, which means that the cost of goods is 68% of the selling price.

Using this information, we can calculate the total selling price of goods available for sale as follows:

Selling price = Cost / (1 - Markup on cost)

Selling price = $3,000,000 / (1 - 0.32)

Selling price = $4,411,765.96

Next, we need to calculate the cost of goods sold:

Cost of goods sold = Selling price x (1 - Gross margin ratio)

Cost of goods sold = $4,411,765.96 x (1 - 0.68)

Cost of goods sold = $1,411,764.70

Now we can calculate the estimated cost of missing inventory:

Estimated cost of missing inventory = Cost of goods available for sale - Ending inventory at cost - Cost of goods sold

Estimated cost of missing inventory = $3,000,000 - $1,050,000 - $1,411,764.70

Estimated cost of missing inventory = $538,235.30

Click the below link, to learn more about Inventory:

https://brainly.com/question/14184995

#SPJ11

when preparing the balance sheet for papago company for december 31, 2021, which item would not be classified as a current liability? multiple choice note payable due march 1, 2023 accounts payable income taxes due on september 15, 2022 the current portion of a 30-year mortgage

Answers

In the given options, the item that would not be classified as a current liability is the current portion of a 30-year mortgage

The current portion of a 30-year mortgage would not be classified as a current liability.

Current liabilities are those obligations that are due within one year or the company's operating cycle, whichever is longer. Examples of current liabilities include accounts payable, notes payable due within one year, and income taxes payable.

The current portion of a long-term liability, such as a 30-year mortgage, represents the portion of the principal that is due within the next 12 months. This amount is classified as a current liability on the balance sheet. However, the remaining portion of the mortgage, which is not due within the next 12 months, would be classified as a long-term liability.

To learn more about   mortgage.. here

https://brainly.com/question/1318711

#SPJ4

1. Next year’s expected firm earnings are $8,000, shares outstanding 2000, ROE=16% required rate of return k= 9%, your plowback ratio b=17% and assuming constant growth dividends. Calculate the PVGO
Please use 5 decimal places in your response
2. Next year’s expected firm earnings are $6,000, shares outstanding 1000, ROE=13% required rate of return k= 10%, your plowback ratio b=20% and assuming constant growth dividends. Calculate todays price P0
Please use 4 decimal places in your response

Answers

1. To calculate the PVGO with given values, first, find the dividend payout ratio (1 - b) which is 1 - 0.17 = 0.83. Next, calculate the earnings per share (EPS) by dividing the expected firm earnings by the number of shares outstanding, which is $8,000 / 2,000 = $4.

Then, determine the dividend per share (DPS) by multiplying EPS by the dividend payout ratio, which is $4 * 0.83 = $3.32. Now, calculate the growth rate (g) by multiplying the plow back ratio by the ROE, which is 0.17 * 0.16 = 0.0272.

Finally, calculate the PVGO using the formula PVGO = (DPS / (kg)) - (EPS / k), which is ($3.32 / (0.09 - 0.0272)) - ($4 / 0.09) = 48.50617 - 44.44444 = 4.06173.

2. To calculate today's price P0, follow similar steps as in the first calculation. Find the EPS, which is $6,000 / 1,000 = $6.

Calculate the DPS using the payout ratio (1 - b) = 1 - 0.20 = 0.80, resulting in a DPS of $6 * 0.80 = $4.80. Calculate the growth rate (g) as 0.20 * 0.13 = 0.026. Lastly, use the Gordon growth model to find P0: P0 = DPS / (kg), which is $4.80 / (0.10 - 0.026) = $64.0000.

To know more about earnings per share (EPS) refer here:

https://brainly.com/question/28580496#

#SPJ11

although a firm's existing mix of financing sources may reflect its target capital structure, it is ultimately . group of answer choices the internal rate of return that is relevant for evaluating the firm's future investment opportunities the marginal cost of capital that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future financing opportunities

Answers

While a firm's existing mix of financing sources and target capital structure are important considerations, they are ultimately less relevant than the marginal cost of capital when evaluating the firm's future investment opportunities.

The most important factor to consider when evaluating a firm's future investment opportunities is the marginal cost of capital. The marginal cost of capital refers to the cost of obtaining additional funds to finance a new project or investment. It takes into account the various sources of financing available to the firm, including debt, equity, and other forms of financing.

When a firm is considering a new investment opportunity, it will typically need to raise additional funds to finance the project. The cost of these funds will depend on the firm's existing financing mix, as well as the current market conditions for different types of financing. For example, if interest rates are low, the cost of debt financing may be relatively cheap, while equity financing may be more expensive.

To evaluate the potential return on a new investment opportunity, it is important to compare the expected return on the investment to the marginal cost of capital. If the expected return on the investment is greater than the marginal cost of capital, then the investment is likely to be profitable for the firm. However, if the expected return is lower than the marginal cost of capital, then the investment is unlikely to generate a positive return for the firm.

It is worth noting that the risk-free rate of return can also be relevant when evaluating a firm's future investment opportunities. The risk-free rate of return refers to the rate of return on a risk-free investment, such as a government bond. This rate can be used as a benchmark for comparing the expected return on a new investment opportunity. If the expected return on the investment is significantly higher than the risk-free rate of return, then the investment may be worth considering.

Click the below link, to learn more about marginal cost:

https://brainly.com/question/7781429

#SPJ11

7. Nestle products Ltd includes in its account system a

purchase and sales ledger control account. The firms' trial

balance as at 31 March, 2018 includes the following

entries.

Purchases ledger control account

Sales ledger control account

The following is a summary of the firms' transactions with its suppliers:

1. Goods purchased and received from suppliers

(a) Gross invoice value before trade discount

(b) Net invoice price after trade discount

2. Goods returned to suppliers

(a) Gross invoice value before trade discount

(b) Gross invoice/price after trade discount

3. Amount due to suppliers

(a) Total amount

(b) Settled by payment of

4. Goods sold to customers:

(a) gross invoice value price before discount

(b) Net invoice value price after discount

5. Goods returned from customers:

(a) Gross invoice value before trade discount

(b)Net invoice price after trade discount

6. Amount due from customers:

GH¢'000

Dr 1,242

Cr 24,647

Dr 39,650

Cr

941

210,756

176,410

16,476

15,113

163,300

159,400

344,700

310,690

7,600

6,764

(a) Full amount

(b) Settle by receipts of

7. Customers debt written off

Additional information:

• It has been decided to create a provision for doubtful debt at

31/3/18 of 12%2% of the total amount due from customers

indebted to the firm. There was no provision for doubtful debt

in the trial Balance at 31 March, 2019

307,610

306,540

970

• At 31st March, 2019 both the purchases and sales ledgers

included accounts with K. M, purchases ledger GH¢1,630,000

(credit), sales ledger GH¢1,268,000 (debit).

• It has been decided to set off K. M's sales ledger balances

against the balance in purchases ledger. The purchases ledger

at 31st March, 2019 included the following account with debit

balances G. G GH¢930,000, L. B GH/420,000.

• The sales ledger at 31st March, 2019 included the following

accounts with credit balances P. H GH¢230,000, H. P

GH¢83,000, K. B GH¢500,000.

You are required to prepare the following account for the year

ended 31st March 2019 in the books of Nestle products Ltd.

(a) Payables ledger control account

(b) Receivables ledger control account

Answers

The required accounts to be prepared for the year ended 31st March 2019 in the books of Nestle products Ltd are:

(a) Payables ledger control account(b) Receivables ledger control account

To prepare these accounts, the given information regarding the transactions with suppliers and customers is used. The purchases ledger control account and sales ledger control account balances are also considered. The provision for doubtful debts is accounted for in the receivables ledger control account.

The accounts with K. M are set off against each other. The debit balances in the purchases ledger accounts of G. G and L. B are adjusted, and the credit balances in the sales ledger accounts of P. H, H. P, and K. B are adjusted.

The payables ledger control account is prepared to show the balance owed to suppliers, while the receivables ledger control account is prepared to show the balance owed by customers. These accounts help in determining the total payables and receivables of the company at the end of the financial year.

To learn more about Payables ledger, here

https://brainly.com/question/17201999

#SPJ4

Apocalyptica Corp. pays a constant $22 dividend on its stock. The company will maintain this dividend for the next 14 years and will then cease paying dividends forever. Required: If the required return on this stock is 15 percent, what is the current share price?

Answers

The current share price of Apocalyptica Corp. is $70.62.

Since the company will maintain the constant dividend for 14 years and then cease paying dividends forever, this is an example of a perpetuity followed by a lump sum payment.

We can use the formula for the present value of a perpetuity followed by a lump sum payment to calculate the current share price:

Current Share Price = (Annual Dividend / Required Return) x (1 - (1 + g)⁻ᴺ) + (Lump Sum Payment / (1 + Required Return)ⁿ)

Where:

Annual Dividend = $22

Required Return = 15%

g = 0% (since the dividend is constant)

N = 14 years

Lump Sum Payment = Present Value of the perpetuity after year 14 = (Annual Dividend / (Required Return - g)) x (1 - (1 + g)⁻ᴺ) = ($22 / (0.15 - 0)) x (1 - (1 + 0)⁻¹⁴) = $253.42

n = 14 years

Plugging in the values, we get:

Current Share Price = ($22 / 0.15) x (1 - (1 + 0)⁻¹⁴) + ($253.42 / (1 + 0.15)¹⁴) = $70.62 (rounded to the nearest cent)

To know more about share price, refer here:
https://brainly.com/question/802532#
#SPJ11

gilbert company made an ordinary repair to a delivery truck during 2022 at a cost of $500 and capitalized the repair cost. what is the effect on the 2022 financial statements as a result of the incorrect capitalization?

Answers

If Gilbert Company made an ordinary repair to a delivery truck during 2022 at a cost of $500 and capitalized the repair cost, the effect on the 2022 financial statements would be that assets and net income are both overstated.  

Assets and net income are both overstated:

If Gilbert Company made an ordinary repair to a delivery truck during 2022 at a cost of $500 and capitalized the repair cost, the effect on the 2022 financial statements would be that assets and net income are both overstated. This is because the repair cost should have been expensed as a repair and maintenance expense, rather than being capitalized and added to the value of the delivery truck.

By incorrectly capitalizing the repair cost, the company has increased the value of its assets on the balance sheet, which in turn will result in an inflated net income on the income statement due to depreciation expense being lower than it should be. This overstatement can lead to a misrepresentation of the company's financial health and profitability.  

To know more about Assets and net income.

visit:

https://brainly.com/question/15700883

#SPJ11

the span at which the cost behaviors are expected to hold true is called: multiple choice variable costing full absorption costing relevant range relevant period

Answers

The span at which the cost behaviors are expected to hold true is called the relevant range.

It refers to the range of activity within which assumptions about cost behavior are valid. The relevant range is important because costs can behave differently at different levels of activity. For example, fixed costs remain constant within the relevant range but can increase or decrease outside of it.

Understanding the relevant range is critical in making decisions that affect costs and revenues, such as setting prices, determining production levels, and analyzing cost-volume-profit relationships. It is also important in managerial accounting, where cost behavior is analyzed to understand the cost structure of a company and to make decisions related to budgeting and forecasting.

Learn more about the relevant range.

https://brainly.com/question/13296648

#SPJ4

Full Question : the span at which the cost behaviors are expected to hold true is called: multiple choice

variable costing full absorption costing relevant range relevant period

archaeologists have found little evidence of any hospitality or tourism businesses; it appears that the industry started in more modern times.

Answers

This statement is generally true. While there may have been some limited forms of hospitality or tourism businesses in ancient times (such as inns or lodgings for travelers), the modern tourism industry, as we know it today, did not emerge until the 19th and 20th centuries.

Before the modern era, travel was often difficult and dangerous, and most people traveled only out of necessity, such as for trade, pilgrimage, or military purposes. While there were some notable examples of early tourism, such as the Grand Tour of Europe undertaken by wealthy young men in the 17th and 18th centuries, these were the exception rather than the rule.

The growth of the modern tourism industry was fueled by a combination of factors, including improvements in transportation (such as the development of railroads and steamships), rising levels of income and leisure time, and the emergence of new forms of tourism such as beach resorts and theme parks.

To know more about hospitality here

https://brainly.com/question/618712

#SPJ4

While there may not be much evidence of hospitality or tourism businesses in ancient times, this is not surprising given the informal nature of these industries and the fact that the concept of tourism as we know it today did not exist. The modern hospitality and tourism industry has its roots in the 19th century and has grown rapidly in the years since, becoming a significant contributor to many national economies around the world.

Archaeologists have indeed found little evidence of hospitality or tourism businesses in ancient times, indicating that these industries started in more modern times. This lack of evidence could be attributed to a number of reasons. Firstly, hospitality and tourism were not highly organized industries in ancient times, and therefore the physical remains of such businesses may not have been well-preserved.

Additionally, hospitality and tourism were often provided on an informal basis by local residents, making it difficult for archaeologists to distinguish between a residential structure and a hospitality establishment.Another factor that may have contributed to the lack of evidence is that the concept of tourism as we know it today did not exist in ancient times. Instead, people traveled for reasons such as trade, religious pilgrimage, or military conquest.

These journeys were often arduous and dangerous, and travelers were primarily concerned with finding shelter and provisions rather than recreational activities.It wasn't until the 19th century that the concept of tourism as a leisure activity began to emerge, and with it, the development of a more formal hospitality industry. This industry grew rapidly throughout the 20th century, fueled by advances in transportation and communication technology, and the increasing wealth and leisure time of the middle class.

For more such questions on hospitality

https://brainly.com/question/31440281

#SPJ11

Conclude an entry barriers essay

Answers

Entry barriers refer to the obstacles that prevent new companies from entering a particular market or industry. The goal of implementing entry barriers is to create a competitive advantage for existing companies, which makes it difficult for new players to enter and compete in the market.

There are many different types of entry barriers, including economies of scale, access to distribution channels, regulatory hurdles, intellectual property rights, and brand recognition. It's important to note that entry barriers can have both positive and negative effects on competition and consumer welfare.

In conclusion, entry barriers can be an effective way for companies to maintain their competitive edge and protect their market share. However, policymakers and regulators must also consider the potential negative consequences of entry barriers, such as reduced innovation and higher prices for consumers. Ultimately, finding the right balance between promoting competition and protecting existing companies is key to maintaining a healthy and dynamic economy.

all of the following are benefits the u.s. will gain from the adoption of globally consistent accounting standards except for: group of answer choices reduction in reporting costs as the need for multiple sets of financial statements decreases. increased quality of information available to investors. continued expansion of capital markets across national borders, facilitating more efficient use of global capital. nearly seamless transition with minimal expenses related to corporate governance considerations.

Answers

The benefit the U.S. will NOT gain from the adoption of globally consistent accounting standards is nearly seamless transition with minimal expenses related to corporate governance considerations. Option D is correct.

The adoption of globally consistent accounting standards is expected to provide several benefits to the U.S., such as the reduction in reporting costs as the need for multiple sets of financial statements decreases, increased quality of information available to investors, and continued expansion of capital markets across national borders, facilitating more efficient use of global capital.

However, a nearly seamless transition with minimal expenses related to corporate governance considerations is not a commonly cited benefit of the adoption of globally consistent accounting standards. In fact, implementing new accounting standards often requires significant changes to a company's corporate governance structure, which can result in additional expenses.

Therefore, option D is correct.

Learn more about accounting standards https://brainly.com/question/28455766

#SPJ11

the degree to which people believe a person has their best interests in mind is known as:

Answers

The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived trustworthiness.

People's perceptions of someone's goodness or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly concerned about their welfare.

Building and sustaining healthy relationships, both personally and professionally, might depend on this degree of trust.

Learn more about benevolence:

https://brainly.com/question/31365577

#SPJ4

The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived trustworthiness. People's perceptions of someone's goodness.

or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived benevolence trustworthiness. People's perceptions of someone's goodness or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly concerned about their welfare.  concerned about their welfare. Building and sustaining healthy relationships, both personally and professionally, might depend on this degree of trust.

Learn more about benevolence here:

brainly.com/question/31365577

#SPJ11

Suppose you came into some money and looking for a bond to invest in. You found a $1,000, with 15 years left to maturity bond. If the bond has a 6% coupon rate but pays interest semi-annually and you require a 13% return on your investment, how much are you willing to pay for the bond? (Round your answer to two decimal point)

Answers

To calculate the price you are willing to pay for the bond, you need to use the present value formula:


PV = C[(1 - (1 + r)^-{n})/r] + FV/(1 + r)^{n}



Where:


PV = Present value (what you are willing to pay for the bond)


C = Coupon payment (in this case, half the coupon rate or 3%)


r = Required rate of return (13%/2 or 6.5%)


n = Number of periods (15 years x 2 since the bond pays semi-annually or 30)



Plugging in the values:

PV = 30[(1 - (1 + 0.065)^{-30})/0.065] + 1000/(1 + 0.065)^{30}


PV = $707.20

Therefore, you are willing to pay $707.20 for the bond if you require a 13% return on your investment.

To know more about investment here

https://brainly.com/question/15353704

#SPJ11

The common stock of NCP paid 1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years.
a. If NCP's current market price is $23.50 per share, what is the stock's expected rate of return?
b. If your required rate of return is 10.5 %, what is the value of the stock for that investor?
c. Should you make the investment?

Answers

Given that your required rate of return is 10.5% and the stock value ($57.024) is higher than the current market price ($23.50), it is clear that the stock is undervalued and would be a wise investment.

We'll be using the Dividend Discount Model (DDM) to solve the problem.

a. To calculate the stock's expected rate of return, we'll use the following formula:
Expected Rate of Return = (Dividend1 / Current Market Price) + Dividend growth rate

First, we need to find Dividend1, which is the dividend for the next year. We have:
Dividend0 = $1.32 (last year's dividend)
Dividend Growth Rate = 8%

Dividend1 = Dividend0 * (1 + Dividend Growth Rate)
Dividend1 = $1.32 * (1 + 0.08)
Dividend1 = $1.4256

Now, we can calculate the expected rate of return:
Expected Rate of Return = ($1.4256 / $23.50) + 0.08
Expected Rate of Return = 0.06066 + 0.08
Expected Rate of Return = 0.14066 or 14.066%

b. To find the value of the stock for an investor with a required rate of return of 10.5%, we'll use the DDM formula:
Stock Value = Dividend1 / (Required Rate of Return - Dividend Growth Rate)

Stock Value = $1.4256 / (0.105 - 0.08)
Stock Value = $1.4256 / 0.025
Stock Value = $57.024

c. To determine if you should make the investment, compare the stock value with the current market price. In this case:
Stock Value = $57.024
Current Market Price = $23.50

Since the stock value ($57.024) is greater than the current market price ($23.50), it indicates that the stock is undervalued, and it would be a good investment based on your required rate of return of 10.5%.

For more such questions on investment, click on:

https://brainly.com/question/29547577

#SPJ11

the future value of an ordinary annuity table is used when calculating multiple choice question. the present value of a series of payments. the present value of a single amount. the future value of a series of payments.

Answers

The future value of an ordinary annuity table is a tool used to calculate the future value of a series of payments made at the end of each period over a certain number of periods.

This table helps individuals determine the amount they will have in the future based on their current investment or savings plan. By using the table, investors can estimate the value of their investment at the end of the investment period, assuming they make regular, equal payments.

The table is also useful in calculating the present value of a series of payments. By taking the future value of these payments and discounting it back to the present, individuals can determine the amount they would need to invest today to achieve their desired future value. This is known as the present value of an ordinary annuity.

The present value of a single amount is also important to consider when investing. This refers to the value of a lump sum payment today that will grow over time, assuming a certain rate of return. By understanding the present value of a single amount, investors can better determine how much they need to invest to reach their financial goals.

In summary, the future value of an ordinary annuity table is a valuable tool for investors to determine the future value of their investments and savings plans. It can also be used to calculate the present value of a series of payments and a single lump sum payment.

Learn more about ordinary annuity table here: https://brainly.com/question/30210003

#SPJ11

actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except: group of answer choices hiring and training groups that have been underrepresented recruiting from groups the employer hasn't previously made an attempt to recruit from mentoring, management training, and other development hiring individuals from underrepresented groups, even if not fully qualified

Answers

The actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except hiring individuals from underrepresented groups, even if not fully qualified.

The other options, such as hiring and training groups that have been underrepresented, recruiting from groups the employer hasn't previously made an attempt to recruit from, and providing mentoring, management training, and other development, are all positive steps toward promoting workplace diversity and inclusion.

However, hiring individuals who are not fully qualified for a position could potentially undermine the objective of achieving a diverse and inclusive workplace, as it might result in lowered performance or negative perceptions from other employees. Instead, focusing on hiring qualified candidates and providing opportunities for growth and development can create a more equitable and inclusive environment for all employees.

To know more about workplace click here

https://brainly.com/question/31281236

#SPJ11

what is the central role of financial intermediaries in a market economy?group of answer choicesproviding safe deposit boxes for people and businessesthe creation and printing of moneybringing together savers and borrowerskeeping the price level stable

Answers

The central role of financial intermediaries in a market economy is bringing together savers and borrowers.

Financial intermediaries are generally used for financial transactions. This usually takes place between different banks.

These types of intermediaries lower the cost of doing business. For leasing purposes, we should use financial intermediaries, and also defer ourselves from accepting credits from the public in this scenario.

To learn more about financial intermediaries,

https://brainly.com/question/30780098

The market price of a 17.00-year STRIPS is $350.00 The
yield to maturity is ____%.
Please show work and how to do it on a
calculator.

Answers

The yield to maturity of a 17-year STRIPS with a market price of $350 is 3.86%.

To calculate the yield to maturity, use the formula:

Yield to Maturity = [(Face Value / Present Value)^(1 / Years to Maturity) - 1] × 100%

Assuming the face value of the STRIPS is $1,000:

1. Divide the face value by the market price: 1000 / 350 = 2.857
2. Raise the result to the power of 1/17 (1 divided by the years to maturity): 2.857^(1/17) = 1.0386
3. Subtract 1: 1.0386 - 1 = 0.0386
4. Multiply by 100% to get the percentage: 0.0386 x 100% = 3.86%

The yield to maturity of the 17-year STRIPS is approximately 3.86%. To calculate this on a calculator, follow the steps mentioned above using the calculator's functions for division, exponentiation, and percentage.

To know more about Face Value  click on below link:

https://brainly.com/question/30626137#

#SPJ11

Anil currently lives in San Marcos and are considering moving to take a new job in northern California. There are three work periods (years) remaining for Anil. Anil will earn $20,000 per year in each of the three periods (years) in San Marcos and will earn $22,000 in each of the three periods (years) in northern California. Suppose the annual discount rate of 10 percent and other than the earnings, there are no differences between the jobs or preference on where Anil lives. a. Assume there are no costs to moving. Should Anil move to northern California or stay in San Marcos? (Hint: Compare the present value of each alternative). b. Now suppose that Anil would incurs some costs to move. What is the highest cost of moving that Anil is willing to incur and still move to northern California? 2. (4 points) CSUSM offers you an option to pay your remaining balance of $1,800 tuition today or pay $2000 for the tuition balance in one year. The interest rate you can earn (adjusted for inflation) is 15%. What should you do to save the most money? Show you calculation. 3. (5 points) Your pizza restaurant plans to invest $20,000 in a new oven that will generates $4.000 net revenues annually beginning the end year 1 through end of year 5. At the end of year 6, the annual net revenue and sale of the oven brings in $2,000. The interest rate to use in the calculation is 6 percent. What is the net present value of the investment? 4. (4 points) An investment in a company pays a guaranteed annual return in dividends (return) of $200 indefinitely (ie, forever, into perpetuity). Suppose the interest is 5 percent. How much would an investor be willing to pay for this dividend? (Calculate the present value of the investment.)

Answers

a. Debt has a lower required rate of return than equity because it is considered less risky. Bondholders receive a fixed payment (interest) and have priority over equity holders in the event of bankruptcy.

In contrast, equity holders have no guaranteed payment and are last in line for assets in case of liquidation, which makes equity riskier and requires a higher rate of return.

b. The Weighted Average Cost of Capital (WACC) for the company is 9.22%. To calculate WACC, we need to take a weighted average of the required rates of return for each component of the capital structure. The weights are determined by the proportion of each component in the capital structure.

The calculation is: WACC = (0.50 x 9.5%) + (0.40 x 7% x (1 - 20%)) + (0.10 x 7.5%) = 9.22%.

The weight of debt is adjusted for the tax shield of interest payments. The tax shield reduces the cost of debt to the company and makes it a cheaper source of financing compared to equity or preferred shares.

For more questions like Capital click the link below:

https://brainly.com/question/29946431

#SPJ11

which of the following are steps that organizations can take to evolve the organization from boundaries to rewards and culture? (check all that apply.) multiple select question. make sure that managers micromanage employees so that mistakes are caught early. make training an important part of the organization. develop a reward system that is clearly aligned with organizational goals. hire the right people.

Answers

The means that associations can take to develop from limits to prizes and culture are make training an important part of the organization, develop a reward system that is clearly aligned with organizational goals, and hire the right people. Hence, options (B), (C) and (D) are correct.

By putting resources into representative preparation and improvement, associations can upgrade their workers' abilities and capabilities, prompting further developed execution and a more grounded hierarchical culture.

Laying out a distinct prize and acknowledgment framework that lines up with the association's targets rouses workers to accomplish these objectives. It cultivates a positive culture that advances superior execution and commitment.

By recruiting the ideal individuals, associations can construct a strong and cooperative labor force that adds to a positive workplace and in general achievement.

Therefore, options (B), (C) and (D) are correct.

Learn more about organizational goals, from:

brainly.com/question/33574110

#SPJ12

8. Determine the beta of a portfolio formed by 30% risk-free asset, 25% stocks of UBS with a volatility of 15% and with a beta of 0.8; 65% in Unilever stocks with a variance of 0.0012 and a beta equal to 0,6 and a short selling position equal to 20% in corporate bonds of Eon with a beta of 0,3. A) Beta between 0, 45 and 0,55 B) Beta between 0,6 and 0,7 C) Beta between 0,33 and 0,43 D) None of the above

Answers

The beta of the given portfolio is beta between 0.45 and 0.55 Therefore, the correct option is A.

To determine the beta of a portfolio, we need to calculate the weighted average of the betas of each component in the portfolio. Given the information in your question, we have:

1. 30% risk-free asset (beta = 0)

2. 25% UBS stocks (beta = 0.8)

3. 65% Unilever stocks (beta = 0.6)

4. -20% Eon corporate bonds (short selling, beta = 0.3)

Now, we'll calculate the weighted average beta:

Portfolio beta = (0.30 * 0) + (0.25 * 0.8) + (0.65 * 0.6) + (-0.20 * 0.3)

Portfolio beta = (0) + (0.2) + (0.39) + (-0.06)

Portfolio beta = 0.53

Based on the calculated portfolio beta of 0.53, the correct answer is A) Beta between 0.45 and 0.55.

Learn more about Beta:

https://brainly.com/question/30691992

#SPJ11

at an output level of 18,500 units, you have calculated that the degree of operating leverage is 3.20. the operating cash flow is $48,000 in this case. ignore the effect of taxes. a. what are fixed costs? (do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. what will the operating cash flow be if output rises to 20,500 units? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. what will the operating cash flow be if output falls to 17,000 units? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

a) The fixed cost is $33,000

b) The operating cash flow be if output rises to 20,500 units is $64,603.20

c) The operating cash flow be if output falls to 17,000 units is 35,544

How to calculate the operating cash flow

a. To calculate fixed costs, we need to first find the contribution margin at the output level of 18,500 units

We can use the degree of operating leverage (DOL) formula:

DOL = (Operating Cash Flow) / (Operating Cash Flow - Fixed Costs)

3.20 = ($48,000) / ($48,000 - Fixed Costs)

Now, solve for Fixed Costs:

Fixed Costs = $48,000 - ($48,000 / 3.20) = $48,000 - $15,000 = $33,000

b. To find the operating cash flow when output rises to 20,500 units, we need to first find the change in units:

Change in units = 20,500 - 18,500 = 2,000 units

Next, calculate the percentage change in output:

Percentage change = (2,000 / 18,500) * 100 = 10.81%

Now, find the change in operating cash flow using DOL:

Change in operating cash flow = DOL * Percentage change in output = 3.20 * 10.81% = 34.59%

New operating cash flow = $48,000 + (34.59% * $48,000) = $48,000 + $16,603.20 = $64,603.20

c. To find the operating cash flow when output falls to 17,000 units, follow the same steps as in (b):

Change in units = 17,000 - 18,500 = -1,500 units

Percentage change = (-1,500 / 18,500) * 100 = -8.11%

Change in operating cash flow = DOL * Percentage change in output = 3.20 * -8.11% = -25.95%

New operating cash flow = $48,000 + (-25.95% * $48,000) = $48,000 - $12,456 = $35,544

Learn more about Operating Cash Flow at

https://brainly.com/question/17001006

#SPJ11

the long run is best defined as a time period during which at least one input cannot be changed. that is longer than two years. during which the prices of other goods change. that is long enough to change all factors of production. one thing that distinguishes the short run from the long run is whether any costs are fixed. explicit costs. the presence of variable costs. the number of months considered.

Answers

The long run is a time period that is longer than two years and during which all factors of production can be changed.

The long run is a time period that is longer than two years and during which all factors of production can be changed. This is in contrast to the short run, where at least one input is fixed and cannot be changed. Another distinguishing factor between the short run and the long run is the presence of fixed costs. In the short run, there are fixed costs, while in the long run, all costs are variable. Additionally, during the long run, the prices of other goods can change, which can impact production decisions.

Learn more about time period here

https://brainly.com/question/2144584

#SPJ11

select all that apply marketers strive for efficient operations to provide their customers with which of the following? (choose every correct answer.) multiple select question. the products they want low-quality merchandise the correct quantity of merchandise products with lower costs than those of competitors'

Answers

Marketers strive for efficient operations to provide their customers with a: "the products they want" and c: "the correct quantity of merchandise", while also offering d: "products with lower costs than those of competitors'".

Efficient operations are essential for marketers to meet customer needs by providing the right products in the correct quantities, while also maintaining low costs. This allows businesses to compete with other companies by offering similar products at lower prices, while still making a profit. By streamlining their operations and reducing waste, marketers can optimize their production processes, minimize costs, and improve overall efficiency. Ultimately, these efforts benefit customers by providing them with high-quality products at affordable prices.

Options a, c and d are answers.

You can learn more about Marketers at

https://brainly.com/question/27961157

#SPJ11

the candle shop experienced the following events during its first year of operations: acquired cash by issuing common stock. paid a cash dividend to the stockholders. paid cash for operating expenses. borrowed cash from a bank. provided services and collected cash. purchased land with cash. determined that the market value of the land is higher than the historical cost.

Answers

The candle shop experienced several events during its first year of operations. Firstly, they acquired cash by issuing common stock.

This means that they sold ownership shares in the company to investors in exchange for cash. Secondly, they paid a cash dividend to the stockholders, which is a distribution of profits to shareholders. Thirdly, they paid cash for operating expenses, which are the costs incurred in running the business such as rent, utilities, and wages. Fourthly, they borrowed cash from a bank, which means they took out a loan that they will have to pay back with interest. Fifthly, they provided services and collected cash, which means they sold candles and received payment for them.

Lastly, they purchased land with cash. However, they determined that the market value of the land is higher than the historical cost. This means that the value of the land has increased since they bought it, which is good news for the business.

Learn more about candle shop  here:https://brainly.com/question/14857684

#SPJ11

Sally receives the following information on her project: PV=100, AC=75, EV=100. How well is the project doing in terms of budget? A) Twenty five (25) dollars over budget B) Fifty dollars (50) over budget OC) Twenty five (25) dollars under budget D) Fifty (50) dollars under budget

Answers

Using the earned value and actual cost, the cost variance is 25 dollars under budget,

How well is the project doing in terms of budget?

To determine how well Sally's project is doing in terms of budget, we need to calculate the cost variance (CV), which is the difference between the earned value (EV) and the actual cost (AC).

CV = EV - AC

CV = 100 - 75

CV = 25

A positive CV indicates that the project is under budget, while a negative CV indicates that the project is over budget. In this case, the CV is positive, so the project is under budget.

Therefore, the correct answer is C) Twenty five (25) dollars under budget.

Learn more on cost variance here;

https://brainly.com/question/14214588

#SPJ1

In many nonindustrial societies, adolescence is considered to be either nonexistent or NON existant or growth leading too Sexual maturityq (true or false)

Answers

False. In many nonindustrial societies, adolescence is considered to be a distinct period of life, characterized by physical, cognitive, and social changes, although the concept and experience of adolescence may differ from that of industrial societies.

In many nonindustrial societies, adolescence is seen as a transitional period between childhood and adulthood, marked by physical changes such as growth spurts and the onset of puberty, as well as social and cultural changes such as increased responsibilities, initiation rites, and gender roles.

However, the experience of adolescence may vary greatly across different nonindustrial societies, depending on factors such as cultural values, economic conditions, and religious beliefs. For example, some societies may emphasize the importance of marriage and childbearing for adolescent girls, while others may encourage exploration and experimentation before settling into adult roles.

Overall, while the concept of adolescence may not be universal or static, it remains an important period of development and transition in many nonindustrial societies.

learn more about adolescence here:

https://brainly.com/question/12945498

#SPJ11

Suppose you came into some money and looking for a bond to invest in. You found a $1,000, with 7 years left to maturity bond. If the bond has a 7% coupon rate but pays interest semi-annually and you require a 5% return on your investment, how much are you willing to pay for the bond? (Round your answer to two decimal point)

Answers

I am willing to pay $985.81 today for this bond if you require a 5% return on your investment.

How to calculate the price of the bond?

To calculate the price of the bond, we need to find the present value of all the future cash flows (interest payments and principal repayment) discounted at the required rate of return of 5%.

The bond has a face value of $1,000 and a coupon rate of 7% paid semi-annually, so the semi-annual coupon payment is:

Coupon payment = Face value * Coupon rate / 2

= $1,000 * 7% / 2

= $35

Since the bond pays interest semi-annually, there will be 14 coupon payments (7 years x 2 payments per year) of $35 each. At the end of the 7th year, the bond will also pay back the face value of $1,000.

Using the formula for the present value of an annuity, we can find the present value of the 14 coupon payments:

PV of coupons = Coupon payment * [1 - 1/(1+r)^n] / r

where r is the required rate of return and n is the number of periods (in this case, 14 semi-annual periods).

Plugging in the values, we get:

PV of coupons = $35 * [1 - 1/(1+5%/2)^14] / (5%/2)

= $444.94

Using the formula for the present value of a single sum, we can find the present value of the face value payment:

PV of face value = Face value / (1+r)^n

Plugging in the values, we get:

PV of face value = $1,000 / (1+5%)^14

= $540.87

Therefore, the total present value of the bond's cash flows is:

Total present value = PV of coupons + PV of face value

= $444.94 + $540.87

= $985.81

So you are willing to pay $985.81 today for this bond if you require a 5% return on your investment.

Learn more about cash flows

brainly.com/question/30736595

#SPJ11

Other Questions
You are considering an investment in a AAA-rated U.S. corporate bond but you are not sure what rate of interest it should pay. Assume that the real risk-free rate of interest is 1.0%; inflation is expected to be 1.5%; the maturity risk premium is 2.5%; and, the default risk premium for AAA-rated corporate bonds is 3.5%. What rate of interest should the U.S. corporate bond pay?a. 5.0%b. 8.5%c. 2.5%d. 6.0% Rectangle MPAT has vertices M(1,2) , P(1, 3), A(3, 3), and T(3, 2) . Rectangle MPAT . Which coordinates describe the vertices of the image? Marsha Wright is a Texas-based professional designer of Westem apparel, including boots and handbags. She works for Old Gringo, Inc., a company that sells Western style boots in the United States and Mexico. Her original employment contract entitles her to a salary of $180,000 per year, After 10 years with the company.company executives invite Wright to a meeting during which they allegedly promised her a 5% ownership stake in the company. The executives told Wright--and other employees--the ownership share was a reward for Wright's hard work and dedication to the company, Old Gringo executive laters denied that Wright was offered this ownership share in the company. When Wright sues to claim her share in the company, she does not win her case. What is the most likely explanation for this result? Under the UCC, modification of an employment agreement must be in writing, Promissory estoppel prevents Wright from winning her case. The past consideration rule prevents Wright from winning her case The pre-existing duty rule prevents Wright from winning her case. 21. which part of the prefrontal cortex seems to be particularly involved in working memory functions? 4- Calculate the pH of 0.3 M NH, where is K = 1.7 x 10 What meaning of the statement this? Find the differential of the function. Z = e4x cos(4t) Problem 7: Find the surface area and round to the nearest tenth. Your friend Stephanie is an artist who wants to make a little bit of money from her work. Her desire is to supplement her income by selling her works without leaving her house. When you analyze Stephanies situation, what is Stephanies best option? A. to create a small online shop B. to volunteer to work for free C. to sell her work at art festivals D. to work for commission one of the techniques used in this experiment was that of crystallization. when cooling a solution in the process of crystallization, why would an ice bath be preferable over cold water or ice alone? none of the answers shown are correct. ice is too cold and will freeze any solution. cold water would dilute the solution making it impossible for crystals to form. a mixture of ice and water will keep the temperature above freezing and will contact the entire portion of the container immersed in the ice/water mixture. wc's taxable income (loss) without the dividend income or the drd is $10,000. what is wc's book-tax difference associate with its drd? is the difference favorable or unfavorable? is it permanent or temporary? You dont have to answer all just one will help out a whole bunch! a client who has been discharged home on citalopram calls the nurse reporting that the medication causes the client to feel too drowsy. the nurse should make which suggestion? 4 (20) + 6 (45) - (80) how are the masses of supermassive black holes related to the masses of the bulges of their surrounding galaxies and what does this suggest about the role of supermassive black holes in galaxy evolution. 7 Skloped Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.184 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $403,200. The project requires an initial investment in net working capital of $576,000. The project is estimated to generate $4,608,000 in annual sales, with costs of $1,843,200. The tax rate is 23 percent and the required return on the project is 11 percent What is the project's Year Onet cash flow? Year 0 cash flow eBook References What is the project's Year 1 net cash flow? Year 1 cash flow What is the project's Year 2 net cash flow? Year 2 cash flow What is the project's Year 3 net cash flow? Year 3 cash flow What is the NPV? NPV What made his actions right? What made his actions wrong you want to rent an unfurnished one-bedroom apartment for next semester. the mean monthy rent for a random sample of 45 apartments advertised in the local newspaper is $775. assume the standard deviation is $110. find a formula used to generate the 98% confidence interval for the mean monthly rent for unfurnished one-bedroom apartments available for rent in this community. dw co. stock has an annual return mean and standard deviation of 8 percent and 31 percent, respectively. what is the smallest expected loss in the coming year with a probability of 16 percent? (a negative value should be indicated by a minus sign. do not round intermediate calculations. round the z-score value to 3 decimal places when calculating your answer. enter your answer as a percent rounded to 2 decimal places.) 20. Phylogenetic tree are used to help show which creatures are most closely related to each other. In the diagram below,common ancestor. The line from the chicken and the line from the dinosaur connect, so they would have a commonthe red dot shows the most common ancestor between a chimpanzee and a human. When two lines come together, there is aancestor. All the lines at the bottom connect, this would be the least common ancestor, but they are still related.ChimpanzeeHuman ChickenDinosaurMost recent commonancestor