Business, 12.11.2019 04:31 Jazmineboo5818

Which of the following statements is correct? (assume that the risk-free rate is a constant.)a. if the market risk premium increases by 1%, then the required return will increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0.b. the effect of a change in the market risk premium depends on the level of the risk-free rate. c. the effect of a change in the market risk premium depends on the slope of the yield curve. d. if the market risk premium increases by 1%, then the required return on all stocks will rise by 1%.e. if the market risk premium increases by 1%, then the required return will increase by 1% for a stock that has a beta of 1.0.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 12:50

You own 2,200 shares of deltona hardware. the company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. your required rate of return on this security is 16 percent. ignoring taxes, what is the value of one share of this stock to you today?

Answers: 1

Answer

Business, 22.06.2019 20:10

Your sister is thinking about starting a new business. the company would require $375,000 of assets, and it would be financed entirely with common stock. she will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an roe of 13.5%. how much net income must be expected to warrant starting the business? a. $41,234b. $43,405c. $45,689d. $48,094e. $50,625

Answers: 3

Answer

Business, 22.06.2019 22:50

Amonopolist’s inverse demand function is p = 150 – 3q. the company produces output at two facilities; the marginal cost of producing at facility 1 is mc1(q1) = 6q1, and the marginal cost of producing at facility 2 is mc2(q2) = 2q2.a. provide the equation for the monopolist’s marginal revenue function. (hint: recall that q1 + q2 = q.)mr(q) = 150 - 6 q1 - 3 q2b. determine the profit-maximizing level of output for each facility.output for facility 1: output for facility 2: c. determine the profit-maximizing price.$

Answers: 3

Answer

Business, 23.06.2019 02:40

The mayflower, a seafood restaurant, had the following liabilities by the end of 2015: accounts payable $60,000 wages payable $100,000 unearned revenue $125,000 (60% will be earned in 2016) notes payable $140,000 ($45,000 payable in 2016) what is the amount that the mayflower should report as total current liability on its balance sheet as of december 31, 2015?

Answers: 2

Answer

You know the right answer?

Which of the following statements is correct? (assume that the risk-free rate is a constant.)a. if...

Questions