The market rate of return is 11 per cent and the risk-free rate of return is 3 per cent. Lexant NV has 3 per cent less systematic risk than the market and has an actual return of 12 per cent. This equity:

Answers

Answer 1

Answer:

underpriced

Explanation:

Without mincing words, let us dive straight into the solution to the solution to the question. From the above problem, the following data or information are given:

=> market rate of return = 11 per cent, risk-free rate of return = 3 per cent,  Lexant NV = 3 per cent less systematic risk than the market, actual return = 12 per cent.

The expected return = [ 11% - 3%] × 0.97 + 3%  = 10.76%.

We are given the actual return to be 12% which is greater than the expected return which is 10.76%.

The equity is overpriced.


Related Questions

Suppose 10-year t-bonds have a yield of 5.30% and 10-year corporate bonds yield 6.75%. Also corporate bonds have a 0.25% liquidity premium versus 0 liquidity premium for T-bonds and the maturity risk premium on both treasury and corporate 10-year bonds is 1.15%. What is the default risk premium on corporate bonds?

Answers

Answer:

1.20%

Explanation:

Calculation for What is the default risk premium on corporate bonds

Using this formula

Default risk premium=Corporate yield-T-bond yield-LP, corporate bond only

Let plug in the formula

Default risk premium=6.75%-5.30%-0.25%

Default risk premium=1.20%

Therefore the default risk premium on corporate bonds is 1.20%

When a strong unity of command is present, employes are assigned to more than one manager.
True
False

Answers

Answer:

The correct option is;

False

Explanation:

Unity of command is the organizational arrangement, whereby all employee assigned to a particular department answer to their line manager, and vice, versa, the line manager directs the activities of all employees within his department to perform the tasks of the organizational engagement or projects for which the department is in responsible.

What does the functional organizational structure organize employees by?

Select one:
a. specialty
b. product
c. profit
d. age

Answers

Answer:

D

Explanation:

I hope this is correct and have a great day

Dante worked 10 hours per week at a grocery store last school year, earning minimum wage. His parents claim him as a dependent on their taxes, and he realizes he doesn't legally have to file a federal tax return for the year. Why might he want to do so anyway?

Answers

Answer:

Dante might want to get a refund.

Explanation:

Assuming that Dante earned $72.50 per week x 50 weeks = $3,625 total yearly income. Maybe his employer deducted $500 as federal income tax withholding during the year. The only way that Dante can recover the $500 withheld is to file taxes and request a refund. Since he earns a very low salary, Dante doesn't need to pay income taxes.

The minimum wage rate is 72.50 dollars per week of labor given. and the schools are open for say 10 months. Assuming the above calculations Dante has earned approximately 3200 dollars during the last school year.

To escape from paying unnecessary taxes as his income rate is still low, he wants to claim the refund that his employer must have deducted which can range from 500 dollars in total.

Dante's parents have claimed to be dependent on them for saving his taxes as his income slab is low and the taxes eat up a big chunk of his salary. It will not increase the liability of his parents taxation by a big margin.

Dante also might have plans to study further and the refund thus claimed will be useful in paying the school fees and will sponsor his education and his expenses on his own.

Further, if Dante files his returns for this year under no tax liabilities he will have an option to smartly claim an amount in the coming years and will save taxes from both the years.

Hence, Dante's parents claimed him to be dependent on them for smart tax saving purposes.

To know more about taxation, kindly refer the below link.

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Give a least two reseons why u think your product and country would be a good idea

Answers

Answer:

my Product and Country Would be a good idea because instead of charging taxes I would make sure everyone is not at the same level but to a point to where no one is homeless or in need of help my product would be something that could make food for free and anytime food is not hard to come by but the wealthy buys so much food that they don't need and discard that those who do need the food cannot retrieve the food because it is already gone being wealthy is nice but if I was wealthy I would try to at least let those around me either become wealthy or make sure they never need something to the point they could die for it.

Explanation:

Need help answer this question please help me

Answers

Answer:

 b). 4 and 14 units

Explanation:

The equilibrium point is the intersection of demand and supply curves. It is a condition of no excess or shortage in supply or demand in the market. At equilibrium, the quantity demand matches the quantity supplied.

At the equilibrium situation, buyers are willing to purchase the quantity supplied at the stated price. It implies both suppliers and buyers are happy with the current supply and price.

write and explain any five relation between market and entrepreneurship skills​

Answers

Answer:

A great entrepreneur must be able to effectively communicate, sell, focus, learn, and strategize.

An ability to continuously learn is not just a key entrepreneurial skill, but also a very valuable life skill.

Growing a business requires a sound strategy based on inherent business sense and skills.

if i were own a liquor store. how would supply and demand effect the way i run the store.

Answers

Answer:

Wait, why did my answer get deleted? I put a fair amount of detail into it, didnt I?

If people want beer and you only have a supply of wine they aren’t going to you’ll see less customers because you aren’t supplying what they want

Demand for a good will MOST likely decrease when
A
there are many substitutes for it.
B
the price of it decreases.
C
consumer income rises by ten percent.
D
retailers sell out of the product.

Answers

Answer:

A. There are many substitutes for it.
I’d Definitely say A.

Jordan deposits $100 into a savings account that pays him with a compound interest rate of 3%. Justin deposits $100 into an accountthat pays him simple interest at the rate of 3%. Who will see a greater return if they withdraw all of their money after 3 years?

Answers

Answer:

Jordan

Explanation:

Given that :

JORDAN :

Principal (P) = $100

Compound interest rate (r) = 3%

AMOUNT AFTER 3 YEARS:

A = P(1 + r/n)^nt

n = number of times interest is applied per period

t = time ; A = final amount

A = 100(1 + 0.03)^3

A = 100(1.03)^3

A = 100(1.092727)

A = $109.2727

JUSTIN :

Principal = $100

SIMPLE INTEREST interest rate = 3%

A = P(1 + rt)

A = 100(1 +(0.03 * 3))

A = 100(1 + 0.09)

A = 100(1.09)

A = 1.09 * 100

A = final amount after 3 years = $109

What does a good credit history do for consumers?
A. It helps them reduce their housing costs.
B. It allows them to get debit cards,
C. It makes it easier for them to get loans.
D. It keeps prices low.
SUBMIT

Answers

Answer:

C. It makes it easier for them to get loans.

Explanation:

Credit history shows how reliable a borrower is in repaying loans. A good credit history indicates that a person pays their debts on time.  A customer with a good credit history manages their income and debts properly and is considered a low-risk borrower.

Lenders are always willing to offer credit facilities to customers with a good credit history. They view them as less likely to default on their debts.

You have data showing demand for plumbing services rising for each of the last five years. This would best be displayed on a:


a) Line graph
b) Scatter plot
c) Pie chart

Answers

Answer:

Line gray

Explanation:

Each of the last five years has shown an increase in demand for plumbing services, according to the data. A line graph would be the best way to show this.

Option A is the best option that displays the best about the rising plumbing demands.

Why do line graphs display the best?

Line graphs are used to track changes across time, both short and long.

When there are fewer changes, line graphs are preferable over bar graphs.

Line graphs can also be used to compare changes for multiple groups over the same time period.
Line graphs are valuable because they clearly display data variables and patterns, and they can aid in making predictions about the outcomes of data that has not yet been recorded.

For more information about line graphs, refer below

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The chart indicates the education or training histories of three employees in the Agriculture, Food, and Natural Resources career cluster. A 2-column table with 3 rows. Column 1 is labeled Employee with entries Prisha, Amos, Deliah. Column 2 is labeled Education and Training with entries High school degree, bachelor's degree, master's degree; High school degree, bachelor's degree; High school degree, on-the-job training. Based on the degrees usually required by Agriculture, Food, and Natural Resources, what are most likely the jobs held by these three employees? Prisha is a Food Scientist, Amos is a Veterinarian, and Deliah is a Floral Designer. Prisha is a Parts Salesperson, Amos is an Environmental Compliance Inspector, and Deliah is a Greenhouse Manager. Prisha is a Park Worker, Amos is an Environmental Engineer, Deliah is a Zoologist. Prisha is a Farm and Management Advisor, Amos is a Forester, and Deliah is an Equipment Operator.

Answers

Answer: D

Explanation:

Answer:

D

hope this helps!!!!11

Explanation:

Lee Ray bought 250 shares of a mutual fund with a NAV of $13.85. This fund also has a load charge of 7%.



a. What is the offer price? (Round your intermediate and final answer to the nearest cent.)



b. What did Lee pay for his investment? (Round your intermediate and final answer to the nearest cent.)


Answers

Answer: a. $14.9

b. $3725

Explanation:

a. What is the offer price?

This will be calculated as:

= NAV / (1 - load charge %)

= 13.85 / (1 - 7%)

= 13.85 / (1 - 0.07)

= 13.85 / (0.93)

= $14.9

B. What did Lee pay for his investment?

This will be:

= Number of shares bought × Offer price

= 250 × $14.9

= $3725

Jared notices a charge for tires in last month's checking account statement. However, Jared does not own a car. Which course of action should Jared take?

Answers

Answer:

he should do the course od iit

Answer: He should contact his bank immediately.

Police: 911, what’s your emergency
Me: omae wa mou shindeiru ✨nani?!?✨
Police: *ded*

Answers

TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ vTeeHee ✨ vTeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ vvTeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ vTeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ TeeHee ✨ vvTeeHee ✨ TeeHee ✨ vvv teehee

It’s in the picture pleaseee I need this today

Answers

Answer:

Can you please post a clearer picture

Explanation:

If you can I might be able to help.

After asking coworkers to review a project plan, you receive feedback. Your coworker thinks there is a better way to display the data in the business report.You should add a
title
reference
abstract
table

Answers

Answer:

table

Explanation:

Even an economically sound economy will have problems managing risk and with solving investment issues. As these are resolved, it is most crucial to maintain _____. Liquidity in the market low transaction costs areas of high risk in the securities market new opportunities for savings and investment

Answers

Answer:

liquidity in the market

Explanation:

In business, market liquidity can be regarded as the trade off that exist between the price one want to sell an asset and how it can be sold out on time. It is a feature in which a particular firm as well as individuals can sell out any asset without serious change in the price of the asset. It should be noted that Even an economically sound economy will have problems managing risk and with solving investment issues. As these are resolved, it is most crucial to maintain Liquidity in the market

The demand for gas in a country becomes price-inelastic.
What will happen as a result?
A. Gas workers will be less likely to be successful in obtaining wage increases.
B. Gas workers will be more likely to be successful in obtaining wage increases.
C. Total expenditure on gas by consumers will fall when its price rises.
D. Total expenditure on gas by consumers will rise when its price falls.

Answers

IS A the wage increases

The demand for gas in a country becomes price-inelastic as a result, as workers will be less likely to be successful in obtaining wage increases. Thus, option A is correct.

What is the demand?

The quantity of a good that consumers are willing and able to buy at different prices during a specific time is known as demand. The demand curve is another name for the relationship between price and quantity demand.

Demand stimulates the economy and drives profits. It's a crucial idea as a result. Supply and demand are closely related ideas. Suppliers seek to maximize profits, while consumers strive to pay the lowest costs possible for goods and services.

As a result, a nation's demand for gas becomes price-inelastic because workers are less likely to be successful in getting raises.

Therefore, option A is correct.

Learn more about the demand, refer to:

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Which education and qualifications would a high-level National Security Officer most likely need? Check all that apply.

design skills
customer-service skills
leadership skills
bachelor’s degree
discipline
high school degree

Answers

The education and qualifications that a high-level National Security Officer would most likely need are :

leadership skillsbachelor’s degreediscipline

Becoming a National Security Officer

Through a competitive, national, merit-based annual competition, successful applicants distinguish themselves as highly motivated in their academic and career goals and in their strong commitment to public service. In return for support, award recipients agree to work in qualifying national security positions for at least one year.

Thus, the education and qualifications that a high-level National Security Officer would most likely need are :

leadership skillsbachelor’s degreediscipline

Learn more on National Security Officer here- brainly.com/question/13823394

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Answer:here's the answer for this question

Explanation:edge2023

Before we dig into Home Safety... Why is home safety important to learn about? In what ways can being educated in
home safety help you as you begin to purchase a home, move into a new home, and observe new homes that you visited?

Answers

Answer:

so you cant die

Explanation:

How is product placement different from a commercial?

business sucks!

Answers

Answer:

Product placements in music videos range from 3-5 minutes whereas product placement in movies can range in 12 minutes-1.5 hours or more in length. A commercial is specifically geared specifically toward interrupted television with a 5-30 sec ad placed in between TV shows.

Product Placement is when a trademark is seamlessly incorporated into the story and plot, of video production.

What is Product Placement?

The significant kinds of product placement are either visual, verbal, signage, or usefulness.

Product placements in theme videos vary from 3-to 5 minutes whereas product placement in movies can meander from 12 minutes-1.5 hours or more in length.

A commercial is geared especially toward interrupted television with a 5-30 sec ad established in between TV shows.

A commercial is especially geared toward interrupted television with a 5-30 sec ad established in between TV exhibitions.

The expenditures of each of these can vary which depend on the reach, demographics of viewership, target markets, time of day, and more additional variables.

Find more information about Product Placement here:

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Economies experience sacracity because:

Answers


Scarcity helps people make more informed choices about how to use the resources that are available. The concept of scarcity works in business in the following ways: Scarcity is essential to the study of economics. A fundamental aspect of scarcity is the mismatch between supply and demand.

41. You own 25% of Unique Vacations, Inc. You have decided to retire and want to sell your shares in this closely held, all equity firm. The other shareholders have agreed to have the firm borrow $1.5 million to purchase your 1,000 shares of stock. What is the total value of this firm today if you ignore taxes? A. $4.8 million b. $5.1 million c. $5.4 million d. $5.7 million e. $6.0 million

Answers

Answer:

e. $6.0 million

Explanation:

The computation of the total value of the firm is shown below:

The Value of the firm is

= Amount borrowed ÷ ownership percentage

= $1,500,000 ÷ 0.25

= $6,000,000

Hence, the total value of the firm is $6,000,000

Therefore the correct option is e.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

A power point can only strengthen your presentation.
True or False

Answers

Answer:

True

Explanation:

because it gives mor information

True because making a PowerPoint presentation makes you look more professional when talking about a topic

A cube has a side length (s) of 5 centimeters. The expression 6s2 gives the surface area of the cube and the expression s3 gives the volume. What is the volume and surface area of the cube?

Answers

Answer:

The volume and surface area of the cube is 125 cm³ and 150 cm² respectively.

Explanation:

The expression for the surface area of the cube :

A = 6s²

s is the side of the cube

The expression for the volume of the cube is :

V = s³

We need to find the volume and surface area of the cube.

For surface area : S = 6(5)² = 150 cm²

For volume : V = (5)³ = 125 cm³

Hence, the volume and surface area of the cube is 125 cm³ and 150 cm² respectively.

What are three negative effects of conflict when it is not handled well?

Answers

Answer:

Low moraleAbsenteeism, Turnover and termination.

Explanation:

Conflicts are unresolved differences between two or more parties. They are intense disagreements caused by parallel thoughts, ideology, action, or plans. When unchecked, conflicts may result in violent behavior. Other negative effects of conflict include

1. Low morale: Conflicts create a tense working environment.  Employees can not focus on their duties. Teams do not perform as cohesive units, which demoralizes employee morale. Productivity per worker reduces, which affects the overall business performance.

2. Absenteeism: Conflict in the workplaces make a section of staff feel not appreciated. They feel their ideas and efforts are not given due consideration. Staff members with such feelings will look for excuses to miss work.

3. High employee turnover :Conflicts make employees seek opportunities elsewhere.

We have this project in my business class, we have to come up with a store/business. I choose a candy store but I can’t think of any fine names. Can someone help me come with a name please?

Answers

Answer:

Candy Crush

Explanation:

Its catchy

Answer:

The Sweete Shoppe

The Lolly Pop

50 Shades of Candy

Explanation:

_ 5. Which of the following is an example of terminal punctuation?
A. Comma.
B. Question mark.
C. Quotation mark.
D. Colon.​

Answers

B. question mark
terminal punctuation refers to punctuation marks used to identify the end of a portion of text.
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