The Delta Co owns retail stores that market home building supplies. Largo, Inc builds single family homes in residential developments. Delta has a beta of 1.22 and Largo has a beta of 1.34
The risk-free rate of return is 4 percent and the market risk premium is 6.5 percent. What should Delta use as their cost of equity if they decide to purchase some land and create a new residential community?
A) 11.93 percent
B) 12.32 percent
C) 12.43 percent
D) 12.57 percent
E) 12.71 percent
E
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Patrick J. Robinson and his associates have identified eight stages in the business buying-decision process. This model is called the ________ framework
A) buygrid B) buying/selling C) seller-centered D) commercial E) buy-analysis
The northwest-corner rule's biggest flaw is that:
A) it ignores costs. B) it cannot generate feasible solutions. C) it never generates ideal solutions. D) it ignores shipping time. E) it does not have a visualization capability.
The point at which marginal revenue equals marginal cost is the breakeven point.
Answer the following statement true (T) or false (F)
To induce Big Boss car dealership to sell Edward a car on credit, Edward's Uncle Joe orally promises that he will pay for his nephew's car if he defaults on the 24 month loan. Six months later Edward stopped making payments. Big Boss sues Joe. Who wins?
a. Big Boss wins because Joe promised to pay for Edward's default. b. Big Boss wins because an oral contract is enforceable. c. Joe wins because an oral contract to pay for the debt of another is not enforceable. d. Joe wins because the contract could not have been performed within one year.