Alpha Inc.'s beta is 1.2, the risk-free rate is 10 percent, and the market risk premium is 5 percent. Which of the following is Alpha's cost of retained earnings using the capital asset pricing model (CAPM) approach??
A. ?8 percent
B. ?10 percent
C. ?12 percent
D. ?14 percent
E. ?16 percent
Answer: E
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The essence of entrepreneurship is to capture most of the existing markets from less aggressive and innovative competitors.
Answer the following statement true (T) or false (F)
The United States falls high on Assertiveness and high on Performance Orientation. How does this affect one’s employment in the U.S. workforce?
What will be an ideal response?
On July 1 . Crimson Corporation had 200,000 shares of $10 par common stock outstanding. The market price of the stock was $12 per share. On the same date, Crimson declared a 1-for-2 reverse stock split. The par value of the stock was increased from $10 to $20, and one new $20 par share was issued for each two $10 par shares outstanding. Immediately before the 1-for-2 reverse stock split,
Crimson's additional paid-in capital was $650,000 . What should be the balance in Crimson's additional paid-in capital account immediately after the reverse stock split? a. $450,000 b. $650,000 c. $850,000 d. $1,050,000
At the beginning of the year, the Prepaid Insurance account had a $1,200 balance which represented an insurance policy that will expire in two years. On July 1, a 3-year, $1,800 policy on a newly constructed building was purchased. The December 31 year-end, adjusting entry will be:
a. Insurance Expense, debit, $3,000; Prepaid Insurance, credit, $3,000. b. Insurance Expense, debit, $1,200; Prepaid Insurance, credit, $1,200. c. Insurance Expense, debit, $1,000; Prepaid Insurance, credit, $1,000. d. Insurance Expense, debit, $ 900; Prepaid Insurance, credit, $900. e. none of the above.