Answer:
The difference between A and B Required Rate of Return is 3.38%
Explanation:
As we know that required rate of return we use CAPM formula that is
Required rate of return = Rf + (Rm - Rf) x Beta
Stock A Return = 4.25% + (11% - 4.25% ) x 0.70
Stock A return = 8.98%
Stock B Return = 4.25% + (11% - 4.25%) x 1.20
Stock B Return = 12.35%
Difference between Return = Stock B Return - Stock A Return
Difference between Return = 12.35% - 8.98%
Difference between Return = 3.38%
Answer:
d. return on a perpetuity
Explanation:
Two types of stock are common and preferred. Preferred stockholders do not have voting rights but they have a higher claim to earnings and assets as compared to the common stockholders. In the case of preferred stock, a fixed annual dividend is obtained forever. So, the cost of preferred stock is computed the same as the return on a perpetuity
Entrepreneurship encourages healthy competition. It
also improves economy by being able to partner with big companies in the other
countries. Bheki Kunene, a young entrepreneur of South Africa, was able to
partner with numerous companies across the world. And lastly, it encourages
healthy competition.
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The tendency is easily explained. As price goes up, the quantity that consumers demand goes down. This is a common correlation between the price of goods and the willingness of the customers to buy products. All businesses today have to build demand in order to know how much do the customers want in order for them to increase their purchase ability.
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The answer to this is D. Core Values