The stock in Bowie Enterprises has a beta of 1.10. The expected return on the market is 12.40 percent and the risk-free rate is 3.21 percent. What is the required return on the company's stock

Answers

Answer 1

Based on the beta of Bowie Enterprises stock, the expected return on the market, and the risk free rate, the required return should be 13.32%.

What is the required return?

You can find this using the Capital Asset Pricing Model:

Required return = Risk free rate + Beta x (Market return - risk free rate)

Solving gives:

= 3.21  + 1.10 x (12.40 - 3.21)

= 13.32%

In conclusion, the return is 13.32%.

Find out more on the Capital Asset Pricing Model at https://brainly.com/question/13937576.


Related Questions

Stephens, Inc. is considering dropping a product line. During the prior year, the line had sales of $170,000, variable costs of $86,000 and total fixed expenses of $110,000. Of the fixed expenses, $95,000 are avoidable. If Stephens drops the product line, net operating income will ______.

Answers

Answer:

Increase by $11,000

Explanation:

The company will lose $84,000 in contribution margin ($170,000 - $86,000). If $95,000 of the fixed costs are avoidable, net income will increase by $11,000.

Out of the choices provided above, it can be concluded to state that the operating income will increase by $11,000 if the line had sales of $170,000, variable costs of $86,000 and total fixed expenses of $110,000, and of the fixed expenses, $95,000 are avoidable. Therefore, the option A holds true.

What is the significance of operating income?

Operating income can be referred to or considered as the income that is generated by an organization from the regular course of business operations, and does not include any special heads of income that do not add to the regular income of the firm.

The operating income is the difference between the total fixed costs and the contribution margin of the firm for a particular accounting year.

Operating Income = Avoidable Fixed Costs – Contribution Margin

Operating Income = 95,000 – 84,000

Operating Income = $11,000

Therefore, the option A holds true and states regarding the significance of operating income.

Learn more about operating income here:

https://brainly.com/question/28524695

#SPJ5

Missing choices are added below.

A. Increase by $11,000

B. Decrease by $11,000

C. No Change

D. Decrease by $10,000

Assume that the united states current account balance is zero. If the united states dollar appreciates against the japanese yen, then demand for united states exports will:.

Answers

If the United states dollar appreciates against the Japanese yen, then demand for united states exports will increase.

What is Export?

These are the goods and services produced in a country and sold into another country.

When the currency of United states dollar appreciates against the Japanese yen, there will be lesser cost in the production of such goods which will lead to increase in export demands.

Read more about Export here https://brainly.com/question/24473707

#SPJ1

What are the costs associated with operating a franchise.

Answers

7 Common Costs Associated with Operating a franchise

Exactly how much a franchise costs is different for every franchise company out there, but most of them have similar startup costs. While the franchisor will help you with some of these costs — maybe through deals it has with preferred vendors or by lending you the money — the onus will be on you to come up with the funds on your own. And it’s not just funds to build and open your franchise, you will also need funds to run it until it becomes profitable.

Let’s take a look at some of the most common costs associated with opening a franchise.

Franchise Fee

When opening a franchise, it’s important to remember that you are essentially “renting” the brand from the franchise. That brand comes with a lot of support and recognition, but you still have to pay for the privilege of being associated with it.

Franchise fees can be as little as $20,000 or as much as $50,000 or even more. The amount of the fee usually depends on how much you have to do to get the franchise up and running. Franchises that require you to build a location will be more than a mobile or home-based franchise, for example.

Your fee will usually cover the cost of your training and site selection support, hence why the fee is higher for businesses that require a location. Exactly what the fee covers is different for each franchise. Sometimes it will just act as a licensing fee for the rights to use the brand. When you are doing your initial research, be sure to find out exactly what your franchise fee covers.

Legal and Accounting Fees

These fees are on you, of course, but they are well worth it. Any person who is considering purchasing a franchise should absolutely consult with an attorney who is familiar with franchise law. The attorney you hire can review the franchise disclosure document with you and go through the franchise agreement to make sure it’s fair.

Each attorney will charge differently for this and it will largely depend on how much time your attorney has to spend on the documents, but you’ll probably have to budget between $1,500 and $5,000 for this.

It’s also a good idea to start working with a qualified accounting firm as soon as you decide to purchase a franchise. An accountant can help you set up your books and records for the company and can also help you determine how much working capital you’ll require to get your business set up and have it run until it becomes profitable.

Working Capital

Speaking of working capital, this is the amount of cash that is available to a given business on a day-to-day basis. It’s crucial to have enough working capital to cover a given length of time. This could be just a few months, or it could be a few years. It depends on how much time the business will need to start bringing in enough revenue for it to run.

Franchisors do generally provide an estimate of how much working capital you’ll require, but you should back this up with your own research and do your own calculations with the help of your accountant. Talk to other franchisees in the system about how much they needed.

Build-Out Costs

Build-out costs include constructing the building and purchasing all the furniture, fixtures, equipment, signage and anything else related to the building such as architectural drawings, zoning compliance fees, contractor fees, decor, security, deposits, insurance and landscaping. Your franchisor will give you an estimate of build-out costs, which vary widely between franchises.

If you choose a home-based franchise, obviously there will not be any buildout costs associated with it, but there may be other expenses like vehicles.

Supplies

These are all the things you require to run your franchise. Restaurants will need food, of course, but they also need plates, cutlery and napkins. Other franchises will need different things to offer their services. Your franchisor can give you a list or estimate of what you will need to run your franchise.

Inventory

If you are purchasing a retail franchise or some other kind of franchise that sells products, you will need inventory. This is another cost that will vary widely between franchises, but your franchisor should be able to help you with estimates. You might have to purchase between $20,000 and $150,000 worth of inventory depending on the business.

Travel and Living Expenses During Training

Franchisors will provide training for franchisees and often the franchisee’s management team. While the training itself is usually covered by the franchise fee, the travelling and living expenses to go to a franchise’s headquarters for that training may not be covered. Often, training runs from a few days to a week or so and is followed up with more training back at the franchisee’s location.

You’ll want to determine whether travel and accommodation are covered by your franchisor and, if not, work out how much the training related expenses will cost you.

Under a licensing agreement, a licensor grants intangible property rights to the licensee. This would include

Answers

A licensor grants intangible property rights to the licensee such as the copyright

Copy Right

Copyright is a type of intellectual that shows that an individual as a legal right over an intangible property such as music, poem. other types of property right are :

Trade markPatent

Learn more about Copy Right here:

https://brainly.com/question/1410153

The first Pepsi yields Craig 18 units of utility and the second yield him an additional 12 units of utility. His total utility from three Pepsis is 38 units of utility. The marginal utility of the third Pepsi is Group of answer choices

Answers

Answer:

the moon has an orbital period of 63.3 days. Calculate the average distance from the earth

Explanation:

calculate the escape velocity of a rocket fired from the earth surface, take (R=6400km)

When the money supply decreases a.interest rates fall and so aggregate demand shifts right. b.interest rates rise and so aggregate demand shifts right. c.interest rates fall and so aggregate demand shifts left. d.interest rates rise and so aggregate demand shifts left.

Answers

Interest rates rise when the money supply falls, shifting aggregate demand to the left.

That is Option D.

When the money supply is reduced, what happens?

When the money supply is restricted, the interest rate rises, discouraging lending and investment. People save more when interest rates are higher, which affects private consumption.

A decline in aggregate demand growth results from lower consumption and investment. The money supply and interest rates are inversely proportional. A higher money supply lowers market interest rates, making borrowing more affordable for consumers.

A Smaller money supply, on the other hand, tends to raise market interest rates, making borrowing more expensive for consumers.

For more information about money supply refer to the link:

https://brainly.com/question/24249291

#SPJ1

When a marketing manager sets prices for all items in a product line, seeking to produce a profit for the entire line but not necessarily each product, it is known as Blank______.

Answers

Answer:

product line pricing

Explanation:

a managers challenge when marketing multiple products is

Please read instructions all the way through, brainiest will be given and 50 pts. Explain the logistics of product delivery. Describe the ins-and-outs of importing and exporting your products. What are the most critical components of delivery and importing/exporting? (i know for a fact that you have to do research on latest distribution trends and i can give you a link to a possibly helpful website if you need, i mainly need pointers for starting off and maybe a little bit of guidance in creating a 2 page response)

Answers

Answer:

The logistics of product delivery could be described as all that's entailed in ensuring a goods or product gets to a customer's destination after it has been purchased from a particular destination.

Explanation:

The logistics of product delivery could be described as all that's entailed in ensuring a goods or product gets to a customer's destination after it has been purchased from a particular destination. It might include shipment or freight if the goods is coming from outside the desired clients location.

Ins-and-outs of importation;

- You'd have to decide the country you're buying from

- The next is to search for suppliers, those who sell the item in that particular country you've searched.

- You'll then need to search what their duty and taxes are, which you'd have to consider in the cost

- Finally, you'll need to find a reliable freight forwarder and customs broker who would handle the clearing of the goods when they get to your country.

Export has the same but there some changes as this time you'd have searched those who need your product and considered all that's needed to ship in your country and how it'll be cleared over your customers destination

am kandy but pls don't friends me...thank me or comment on this q anymore cz this is my school acc.

Process explanations follow a _________ pattern of organization. specific thorough chronological detailed

Answers

Process explanations follow a chronological pattern of organization. A chronological pattern organizes information according to the sequence of time. Chronological order is the order in which the events occurred, from first to last.

Organizational patterns

There are six key patterns for details,

simple listing, order of importance, chronological order, spatial development, cause and effect, comparison and contrast

Therefore, the answer to the question is option C. chronological

learn more about organizational patterns: https://brainly.com/question/26819522

Caribou Coffee and Tata Global Beverage have together formed TATA Caribou Limited in order to bring Caribou to India. The global market entry strategy is known as

Answers

The global market entry strategy used by Caribou Coffee and Tata Global Beverage to bring Caribou to India is known as a Joint venture strategy.

What is a Joint venture?

This means a business agreement where companies make a decision to work together with an aim of achieving a specific set of goals.

As Caribou Coffee and Tata Global Beverage formed together to form the TATA Caribou Limited which operate in India, such business strategy is known as a Joint venture.

Read more about Joint venture

brainly.com/question/4467038

The two ways that a corporation can be classified by purpose are.

Answers

Answer:

profit and not-for-profit.

Explanation:

During a depression or recession, which of the following is most likely to
happen to interest rates?
A. Interest rates will likely rise as the Federal Reserve board
decreases inflation rates.
B. Interest rates will likely decrease as the Federal Reserve Board
increases inflation rates.
C. The Federal Reserve Board will likely lower interest rates.
D. The Federal Reserve Board will likely raise interest rates.

Answers

The Federal Reserve will more than likely decrease interest rates to encourage spending. When interest rates are low, individuals wish to spend money as it costs less for them to borrow. This increases economic activity to get themselves out of a depression/recession.

Taste of the Tropics is a manufacturer of fruit juice products. It recently reduced the amount of its premium juice line from 64-ounce containers to 52-ounce containers but kept the price the same. This is an example of

Answers

Taste of the Tropics is a company that makes fruit juices. It recently lowered the size of its premium juice brand from 64 to 52 ounce containers while maintaining the same pricing is the example of Marginal revenue.

What is marginal revenue?

Marginal revenue is the increase in income that results from the sale of one additional unit of output.

The law of diminishing returns states that while marginal revenue can remain constant for a particular quantity of output, it will eventually slow down as the output level grows.

Thus, it is an example of Marginal revenue.

For further details about the marginal revenue, click here:

https://brainly.com/question/13383966

#SPJ1

The __________ helps measure a company's ability to meet its obligations, pay dividends, expand operations, and obtain financing. It is computed by taking cash flow from operations divided by average total assets.

Answers

cash flow on total assets

The cash flow on total assets helps measure a company's ability to meet its obligations, pay dividends, expand operations, and obtain financing. It is computed by taking cash flow from operations divided by average total assets.

In the early 2000s, laws requiring banks and mortgage brokers to disclose the terms of home loans failed to prevent many Americans from entering into irresponsible mortgage agreements. This could have been the result of

Answers

Due to information overload in the early 2000s, laws requiring banks and mortgage brokers failed to prevent Americans from entering into irresponsible mortgage agreements.

What do you mean by mortgage?

A mortgage refers to the process of giving something up as a guarantee or collateral against a loan. A person may encounter a term when seeking a secure loan.

Thus, due to information overload in the early 2000s, laws requiring banks and mortgage brokers failed to prevent Americans from entering into irresponsible mortgage agreements.

Learn more about Mortgage here:

https://brainly.com/question/1318711

#SPJ1

According to clinton, what is the benefit of a global economy? more jobs and better living conditions protection of the environment forces of integration

Answers

President Clinton asserted that the benefit of a global economy is the creation of more jobs and better living conditions.

What is a global economy?

Its means the interconnected worldwide economic activities that occurs between multiple countries across the world.

The global economy is what enable the importation and exportation from one country to others and creates international trade.

The President believed that benefit of a global economy is the creation of more jobs and better living conditions.

Therefore, the Option A is correct.

Read more about global economy

brainly.com/question/1311866

#SPJ4

Answer: more jobs and better living conditions.

Select the correct answer.
What economic concept is applied in this statement?
By earning higher levels of education, students learn skills and are more likely to be employed. In their jobs, they use their skills to provide goods
and services to others.

Answers

The economic concept that is applied in the statement is D. positive externality.

What is a positive externality?

Positive externality refers to the production and consumption of a good or service that benefits some other third parties, who are not directly involved in the transaction.

Some examples of activities that create positive externality include:

EducationVaccinationLocal investmentsBuilding of infrastructure.

Thus, the economic concept that is applied in the statement is D. positive externality.

Learn more about positive externalities at https://brainly.com/question/477170

#SPJ1

Select the correct answer. based on your knowledge of word parts, complete the sentence with the correct word. sam had to mix __________ parts of the two chemicals for the experiment. a. equaled b. equitably c. equal d. equate e. equation

Answers

Sam had to mix equal parts of two chemicals to do the research. When we say equality, it is the same in value or value.

How will you describe the word Equal as?

In English, the equal word is noun, verb, and adjective. As a noun, it means the same thing in sight, as a condition. As a verb, we mean the same thing in reality, as a mathematical equation.

If equal, working equally or equally with everyone. If it is an equation, a complex situation, or an issue.

Hence, the correct answer is that Sam had to mix equal parts of the two chemicals for the experiment.

To learn more about the word Equal, refer:

https://brainly.com/question/1680887

Answer:

its C : equal

Explanation:

just took the test

An economic carrot, or incentive, is –. An economic stick, or punishment, is –.

Answers

An economic carrot, or incentive, corresponds to foreign aid. An economic stick, or punishment, corresponds to sanctions.

What is an economic carrot?

It is a metaphorical expression used to designate a reward, that is, an aid that an economy can receive from another nation in a moment of crisis, for example.

Therefore, the expressions carrot and economic stick are metaphors that represent positive or negative causes and consequences on a country's economy.

Find out more about economy here:

https://brainly.com/question/1106682

#SPJ1

A federal budget deficit occurs when _____ Group of answer choices aggregate supply is greater than aggregate demand. aggregate demand is greater than aggregate supply. there is deflation. federal government purchases exceed net taxes. there is inflation.

Answers

A federal budget deficit occurs when federal government purchases exceed net taxes. Option C is correct.

What is federal budget?

The federal budget is the budget of the United States. It comprises the federal government's spending and revenues.

The budget is the monetary or medium of exchange expression of the  priorities of the government and showing the past conflicts and conflicting economic views.

A federal budget deficit occurs when government spending exceeds revenue, which is the money collected from, fees, taxes and investments. Deficits add to the national debt, or debt owed by the federal government.

Therefore, option C is correct.

Learn more about the federal budget, refer to:

https://brainly.com/question/15374043

#SPJ1

Assume that the public holds part of its money in cash and the rest in checking accounts. If the central bank lowers the reserve requirement from 16 percent to 8 percent, the money supply will

Answers

If the public holds part of money in cash and rest in checking accounts, change in the reserve requirement from 16 percent to 8 percent, the money supply will increase by less than double.

What do you mean by money supply?

Money supply refers to the total of cash coins and bank account balances in circulation. Through monetary policy, money supply is determined by the central bank.

Reserve requirements refer to the amount that must be hold by commercial banks for ensuring that it must be able to meet the liabilities in case of sudden withdrawals.

Therefore, lowering the reserve requirement ratio from 16 percent to 8 percent by central bank, the money supply will increase by less than double.

Learn more about money supply here:
https://brainly.com/question/24249291

#SPJ1

ASAP
Please help!!!!
nationwide furniture stores sells selectional sofa set but contracts with local delivery companies to provide furniture delivery for customer this is an example of commission, delegation, consignment, assignment

Answers

ANSWER: Consignment: a batch of goods destined for or delivered to someone

Explanation:

It is not commission because that is order granting the power to perform various acts or duties

it is not delegation because the act or process of delegating or being delegated

The profit-maximizing rule leaves room for cases where it is both possible and reasonable for a firm to operate at a loss over the long run.

Answers

It is a false statement that profit-maximizing rule leaves room for cases where it is both possible and reasonable for a firm to operate at a loss over the long run.

What is a profit-maximizing rule?

The rule of profit maximization says that MC = MR where the MC means marginal costs and MR means marginal revenue.

As all costs are variable in the long run, then, a firm must always set its profit to zero by ceasing operation.

Therefore, It is false that profit-maximizing rule leaves room for those cases.

Read more about profit-maximizing rule

brainly.com/question/16737525

Which of the following is not a disadvantage to cash advances on a credit card? a. cash advances are similar to loans in that they need to be paid back with interest. b. cash advances require a lot of paperwork and are generally difficult to get. c. cash advances are often the last thing to be paid when paying off your credit card. d. cash advances often come with an interest rate much higher than your credit card. please select the best answer from the choices provided. a b c d

Answers

It is not a disadvantage that a. cash advances are similar to loans in that they need to be paid back with interest.

What is cash advance on a credit card?

A cash advance on credit card is can be described as a short-term cash loan secured by the credit line on your credit card.

In addition, cash advances, like loans, must be repaid with interest, which is not a disadvantage.

Most credit card including charge card providers will give their customers a cash advance if they ask for one, and this is going to be their credit limit.

Learn more about cash advance here: https://brainly.com/question/13012797.

#SPJ1

What piece of legislation, one of the most complex areas of federal civil law, was established in 1974 mainly to protect the employee pension system from employer fraud

Answers

Employee Retirement Income Security Act is established in 1974 mainly to protect the employee pension system from employer fraud.

What is Employee Retirement Income Security Act?

The Employee Retirement Income Security Act serves as an act of 1974 that contains rules on the federal income tax to favor employees.

This act, provides employee with benefit plans and a protection against wicked employers.

Learn more about Employee Retirement Income Security Act at;

https://brainly.com/question/1083892

Energy-efficient jobs are growing! One job includes being a conservation scientist, which is part of the STEM job cluster. What is the best definition for a conservation scientist?

Answers

Answer: manage improve, and protect natural resources to maximize their use without damaging the environment.

Explanation:

hope its right

What percentage of each dollar of sales affected net income given Sales of $120,000; Cost of Goods Sold of $70,000; Operating Expenses of $10,000; Interest Expense of $5,000; Income Tax Expense of $5,000; and Net Income of $30,000

Answers

Answer: 25%

Explanation:

________ is a term associated with an advertisement has been seen or heard so many times that it irritates consumers.

Answers

Advertising wearout is a term used to describe the wear of an advertising campaign that can even irritate consumers.

What is advertising wearout?

It is the loss of effectiveness in the memory of the message or the feeling of irritability before an advertisement by increasing the level of exposure.

It is a consequence of the constant maintenance of the advertisement in the medium that consumers become saturated of seeing the same commercial repeatedly.

Therefore, we can conclude that advertising wearout is a term used to describe the wear of an advertising campaign that can even irritate consumers.

Learn more about advertising here: https://brainly.com/question/13069627

The perfection obtained by filing a financing statement lasts for ______. A. five (5) years, and is renewable. B. five (5) years, and is non-renewable. C. ten (10) years, and is renewable. D. ten (10) years, and is non-renewable.

Answers

The perfection obtained by filing a financing statement lasts for A. five (5) years, and is renewable.

What is a perfection in a financing statement?

When the term perfection comes to play in the financing statement, what it means is that the secured party would not have to file a financing statement.

When this is the case, they would not not need to have a collateral or have much control.

Read more on financial statements here: https://brainly.com/question/26240841 #SPJ1

In the context of expanding one's professional network, ________ is an effective technique for learning about ideal jobs or careers that involves reaching out to and asking people about their own careers and jobs.

Answers

Peer mentoring is an effective technique for learning about ideal jobs or careers that involves reaching out to and asking people about their own careers and jobs.

What is Peer mentoring?

Peer mentoring refers to a one-on-one relationship or experienced within a group. It is a relationship between people who are at the same career stage or age.

The peer mentoring is specifically more effective in expanding the professional network. Peer mentoring involves learning by reaching out to more experienced individuals in an organization.

Hence, Peer mentoring is an effective technique for learning about ideal jobs or careers that involves reaching out to and asking people about their own careers and jobs.

Learn more about Peer mentoring here: https://brainly.com/question/14680255

Other Questions
Explain what the acronym PEMDAS means and how you use it when evaluating expressions. For all x, (2x + 1)^2= ? The cumberland gap is located in what mountain range?. How much energy must the shock absorbers of a 1200-kg car dissipate in order to damp a bounce that initially has a velocity of 0. 800 m/s at the equilibrium position Which of the following is a good way to start the writing process? Select one: a. Writing a draft b. Outlining c. Writing the introduction d. Writing the title I need help with this Im confused Find the length of the arc.1206ft If the solution to a linear system of equations is x=6 and y= 2 and you graphed the two equations, where would the two lines intersect? How do you know? How does justice Black support dissenting opinion Of which of the following nutrients do infants require extra servings?A carbohydratesB. dietary sugarsC. vitamin AD. fatty acids What is the length of the missing leg? If necessary, round to the nearest tenth Need help with system of equation 3 variable. Direction:find the volume of each solid figure below. Why were the American troops killed in the Brett bombing station in Lebanon The composition of a star is determined from... Group of answer choices the amount of shift in the spectral lines in the spectrum. the pattern of spectral lines in its spectrum. the depth of spectral lines in the spectrum. the red or blue shift of spectral lines in a spectrum the width of the spectral lines in the spectrum During the Classical period therebegan to be a demand forA. slower, more tedious music.B. tuneful, elegant music.C. unpolished, unstructured music. 5 Four children are measuring their height.Aisha1.39 metresTeddy1.37 metresScott1.4 metresKim1.43 metresOrder the children from tallest to shortest. How do I do number 9? What does it mean if people are lactose intolerant?O A.They dislike the taste of dairy. B.They refuse to consume any animal products.O c.They cook with milk butdo not consume it plain.O D. They cannot digest milk and other dairy products. Which of the following is true regarding the materials science field?Most colleges and universities offer a bachelors degree in materials science.Most materials scientists are required to have a masters degree to perform scientific research.Most colleges and universities require work studies and internships for materials science students.Most materials scientists have a bachelors degree in chemistry, physics, or engineering.