Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
Answer:
C) 0.0 percent
Explanation:
The net return on any investment is what we receive from the investment in addition to the purchase price paid.
In the given instance the investor pays $22.50 per share as an investment cost, to acquire such shares. Number of shares purchased = 500
Now at the end of the period the shares are sold for $21 each
Also the dividend per share received is $1.50
Thus, total return = $21 + $1.50 = $22.50 per share.
This is exact same as that of the investment price.
Thus net return = Total benefits - Cost = $22.50 - $22.50 = $0
Since net return is $0 the value of return in percentage shall also be $0.
Land, labor, capital, and entrepreneurship
Answer:
A.
Explanation:
The issues management process is a systematic process companies use when responding to public issues that are of greatest importance to the business.
Answer:
PV= $124,867.78
Explanation:
Giving the following information:
Cash flow= $37,250
Discount rate= 15%
Number of periods= 5 years
<u>To calculate the present value, we need to use the following formula:</u>
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
PV= 37,250*{(1/0.15) - 1/[0.15*(1.15^5)]}
PV= $124,867.78
