Colt's Fanwear Inc. is a publicly traded company that is planning on issuing new common shares to raise $10 million for expansion of the business. The company currently pays dividends of $2 per share, which represents a 3.5% yield on a market value basis. The pension plan of a local university is considering an investment in the new shares and the investment officers need to develop a required rate of return on such an investment using the CAPM. They believe the current risk free (Treasury Bill) rate is 1.0 % and that the market rate is 6%. Required:
Beta for Colt's Fanwear is 1.6 per a reliable outside source. Using the CAPM what is the estimated required rate of return?

At the beginning of 2014, winston corporation issued 10% bonds with a face value of $2,000,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,852,800 to yield 12%. winston uses a calendar-year reporting period. using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (round your answer to the nearest dollar.)

What could cause a production possibilities curve to move down and to the left? a.) a nation loses land after being defeated in a war. b.) an increase in the use of computer technology speeds up production c.) a baby boom 20 years ago results in a large number of young adults in the population today. d.) thousands of investors from overseas invest money in a nations economy.

Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. long-run economic growth is unlikely to be sustainable because of finite natural resources. in the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. finding alternatives to natural resources will be very important to long-term economic growth. in the modern economy, human and physical capital are generally less important in productivity than natural resources. in the 19th century, countries with the highest per capita gdp were nearly always abundant in minerals and productive farming land.