Calculate the required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future. The real risk-free rate is equal to 3% and the market risk premium is 5%. Mercury has a beta of 2.0, and its realized rate of return has averaged 15% per year over the last 5 years.

Answers

Answer 1

The required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future is 18%.

How to calculate the rate if return?

Real risk free rate = 3%

Inflation Premium = 5%

Nominal risk free rate Rf = Real risk free rate + Inflation Premium = 3% + 5% = 8%

Market risk premium (Rm –Rf) = 5%

Beta = 2

As per CAPM, required rate of return:

= Rf + beta * (Rm – Rf)

= 8% + 2 * 5%

= 8% + 10%

= 18%

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Related Questions

Kylie and her sister started watching an action movie at 10:11 A.M. The movie was 2 hours
and 30 minutes long. After the movie, they played soccer in the backyard for 2 hours and 5
minutes. What time was it when Kylie and her sister finished playing soccer?

Answers

Answer:

2:46 p.m.

Step-by-step explanation:

Answer:

2:46 p.m.

Step-by-step explanation:

Start time: 10:11 a.m.

movie end time: 10:11 a.m. + 2hrs 30 min = 12:41 p.m.

soccer end time: 12:41 p.m. + 2hrs 5 min = 2:46 p.m.

Nine more than six times the number x is 7 less than the number x.

Answers

Answer: 9 + 6(x) = 7 - x

Answer:

→ 9 + (6 × x) = 7 - x

There are about 1,045,000, people living in City A. There are 2.5 times that number of people living in City B. What is the approximate number for people living in City B?

Answers

The approximate number for people living in City B is 2612500 people

What is the approximate number for people living in City B?

The given parameters are

City A = about 1,045,000, people

City B = 2.5 times that number of people living in City B

Substitute City A = about 1,045,000, people in City B = 2.5 times that number of people living in City B

So, we have

City B = 2.5 times 1,045,000, people

Rewrite as

City B = 2.5 * 1,045,000, people

Evaluate the product

So, we have

City B = 2612500 people

Hence, the approximate number for people living in City B is 2612500 people

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PLS HELP 30 POINTS


The graph represents a quadratic function. Write an equation of the function in standard form.

Answers

Answer: [tex]y=x^2 -4x-2[/tex]

Step-by-step explanation:

The equation in vertex form is [tex]y=a(x-2)^2 -6[/tex]. Substituting in the coordinates (5, 3),

[tex]3=a(5-2)^2 -6\\\\3=9a-6\\\\9=9a\\\\a=1[/tex]

So, the equation is [tex]y=(x-2)^2 -6[/tex]. This expands as follows:

[tex](x-2)^2 -6\\\\=x^2 -4x+4-6\\\\=x^2 -4x-2[/tex]

Answer:

f(x) = [tex]x^{2}[/tex] -4x -2

Step-by-step explanation:

A shirt you want to buy is $25.50 but is marked down 30%. What is the sale price? O A. $7.65 O O 8. $17.85 C. $33.15 O D. $21.24​

Answers

The answer is B. $17.85 because
25.50 X 0.30 = 7.65
25.50 - 7.65 = $17.85

Describe how to transform the graph of f into the graph of g.
f(x)=√x and g(x) = √0.2x

Answers

The  f(x) - k shifts the function g(x) by  √0.8x units downwards

Let us consider

f(x) = g(x) + k

g(x) = f(x) - k

where f(x) = √x and

          g(x) = √0.2x

Substituting these values in the above equation

√0.2x = √x - k

-k = -√x + √0.2x

k = √x - √0.2x

k = √0.8x

which means that the f(x) - k shifts the function g(x) by √0.8x units downwards.

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a stadium has 20,000 reserved seats and 25,000 general admission seats. if reserved seats are $17.50 and general admission seats are $10.75

Answers

A stadium has 20,000 reserved seats and 25,000 general admission seats. if reserved seats are $17.50 and general admission seats are $10.75. The total money taken is $618750

a stadium has 20,000 reserved seats

cost of reserved seats are $17.50

total cost of reserved seats are 20000 x $17.50

total cost of reserved seats = $350,000

the stadium has 25,000 general admission seats

cost of general admission seats are $10.75

total cost of general admission seats is 25000 x $10.75

total cost of general admission seats = $268,750

total money taken if tickets of all seats are sold is summation of cost of reserved seats and general seats

= $ 350000 + $268750 = $618750

Therefore the total money taken is $618750

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GUYS HELP I HAVE A MATH THING please tell me if the answers are right or what are the answers PLSS LOOK AT THE PIC>>>

Answers

Answer: day 30 480

4+12 =16 (30)

I don’t understand if it's asking in weeks or in days

What is the distance between –12 and –7 on a number line?

Answers

The answer is 5 yeahhhhhhhhh

Latoya got a prepaid debit card with $30 on it. For her first purchase with the card, she bought some bulk ribbon at a craft store. The price of the ribbon was 13-
cents per yard. If after that purchase there was $24.67 left on the card, how many yards of ribbon did Latoya buy?
yards

Answers

Answer:

.8976 per yard

Step-by-step explanation:

30-24.67=5.33

13÷5.33= 2.43 yards

You are comparing two savings accounts based on the interest you would earn and the fees they charge. Assuming you have a savings account with an average balance of $500, which combination of interest rates and fees are a better deal? (Hint: Using a one year period, determine the balance that you would have at Bank A and Bank B).

Answers

Using simple interest, the better deal is given by Bank B.

What is the missing information?

The options are missing, but they are given as follows:

Bank A: An account with 10% annual interest rate and $5/month in fees.Bank B: An account with 2% annual interest rate and no fees.

Simple Interest

Simple interest is used when there is a single compounding per time period.

The amount of money after t years in is modeled by:

A(t) = A(0)(1 + rt)

In which:

A(0) is the initial amount.r is the interest rate, as a decimal.

For Bank A, the balance, without the fee, will be given by:

A(1) = 500(1 + 0.1) = $550.

Removing the fee:

550 - 12 x 5 = $490.

For Bank B, the balance is given by:

A(1) = 500(1 + 0.02) = $510.

No fee, 510 > 490, hence Bank B offers the better deal.

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What is 62 less than the product 22 and 3?

i need it in number sentence

Answers

Answer:

(22 × 3) - 62

Step-by-step explanation:

(22 × 3)-62

66 - 62

The answer is therefore 4

Midtown Antiques collects 2% sales tax on all sales. If total sales including tax are
$1591.62, find the portion that is the tax amount.

Answers

Answer:.05*1493.47 = $74.67 also

Step-by-step explanation:

Translate the following into a math expression:
twenty less than the product of five and a number

A: (x+5) - 20

B: 20-5x

C: 5x-20

D: 5/x - 20

Answers

Answer:

[tex]5x - 20[/tex]

Step-by-step explanation:

Product means the result of the multiplication of two numbers. A part of our expression will include the product of five and a number. We don't know what number it is, therefore, we'll call it [tex]x[/tex]. The product of those two numbers can be algebraically expressed as [tex]5x[/tex] (we usually eliminate the multiplication sign between numbers and variables).

We are then asked to express the number that is 20 less than the product we found earlier. To find this expression, we should subtract 20 from the product, giving us [tex]5x - 20[/tex].

Question 8 of 10 What is the domain of the function graphed below ​

Answers

Answer:

Step-by-step explanation:

Answer:

domain of the given function is i don't know sorry

Step-by-step explanation:

4. Two cities are 400 miles apart. A high-speed train can get from one to the other in two hours.
What is its speed?

Answers

Answer:

200 MPH

Step-by-step explanation:

You basically have to divide 400 miles by two hours, since you need the miles per hour.

*Please mark brainliest answer

Harriet's Flowers is having a sale on petunias for $0.25 each with the purchase of any $12 item. The Premiere
Garden Shop is selling them for $0.15 each with the purchase of any $15 item. What number of petunias would
cost the same at either shop?
Premiere

Answers

Answer:

30 petunias

Step-by-step explanation:

p=petunias

0.25p +12 = 0.15p + 15

-0.15p          -0.15 p                 Subtract 0.25 with 0.15

0.10p + 12 = 15

           -12    -12                       Subtract 15 with 12

0.10p = 3                                 Divide 0.10p with 3

p=30

A person at the mall purchased 4 shirts at an average price of $14. How much did the 5th shirt cost if the average after the 5th shirt was purchased changed to $16 per shirt?

GIVING BRAINLIEST AND THANKS

Answers

Answer:  $24

Step-by-step explanation:

14+14+14+14=56

56+24=80

80/5

16

The 5th shirt cost $24 if the average after the 5th shirt was purchased changed to $16 per shirt.

Let's consider the total cost of the first 4 shirts:

Total cost of first 4 shirts = 4 shirts * $14/shirt = $56

Now, let's assume the cost of the 5th shirt is "x" dollars. After purchasing the 5th shirt, the total cost of all 5 shirts would be:

Total cost of all 5 shirts = $56 + x

Given that the average price after the 5th shirt was purchased is $16, we can set up an equation using the average formula:

Average price = Total cost / Number of shirts

$16 = ($56 + x) / 5

Solving for x:

$16 * 5 = $56 + x

$80 = $56 + x

x = $80 - $56

x = $24

So, the cost of the 5th shirt (x) is $24. This means that the person purchased the 5th shirt for $24 in order to bring the average price of all 5 shirts to $16 per shirt.

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Consider the event of a coin being flipped eight times. If that event is repeated 10000 different times. it is expected that the event would result in 8 heads about __times

Answers

If the event of a coin is being flipped eight times. If that event is repeated 10000 different times. it is expected that the event would result in 8 heads about 39.06times

Probability

The probability of flipping heads onetime= 1/2

Hence,

Probability of flipping heads 8  times in a row is:

Probability= (1/2)^8

Probability=0.00390625

Now let determine the expected times

Number of times=0.00390625×10,000

Number of times=39.06 times

Therefore If the event of a coin is being flipped eight times. If that event is repeated 10000 different times. it is expected that the event would result in 8 heads about 39.06 times

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Choose the definition for the function.
A.
C.
√4x - if x < 0
3
2x + 2
if x ≥ 0
2x - 2
--4
if x ≤ 0
if x > 0
B.
D.
2x + 2
x + 4
x + 4
2x + 2
if x ≤ 0
if x > 0
if x ≤ 0
if x > 0

Answers

Answer:

B

Step-by-step explanation:

we need to look at the y-intercept (the y value when x=0).

we need equating with +2 and +4 at the end.

that eliminates A and C, leaving B and D as potential right answer.

but then we see that the y-intercept "+2" must be in an equation for x <= 0, because that line with +2 intercept only covers negative x.

so, B is correct.

3×+(8×-16) what is the simplified form of this equation

Answers

Answer:

11x - 16

Step-by-step explanation:

3x + (8x-16)

3x + 8x-16

11x - 16

which option could complete the sequence in question 25

25. 27, 3, 24, 7 .......... 11, 18

a. 16

b. 14

c.28

d. 21​

Answers

The right option which completes the sequence is option d.

21.

Given, the series is 27, 3 , 24 , 7,......11, 18

There are 2 series in the given series,

1st series = 27 , 24 , ? , 18

2 nd series = 3 , 7 , 11

In the first series, the next term gets subtracted by 3.

27 - 3 = 24

24 - 3 = 21

21 - 3 = 18

In the second series, the next term gets added by 4.

3 + 4 = 7

7 + 4 = 11

hence the series is completed:

27,3,24,7,21,11,18

Therefore the sequence is completed.

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50 POINTS!!!! PLEASE HELP
Examine this figure.

What postulate or theorem is used to prove∠3≅∠7?
Responses

alternate exterior angle theorem
same-side interior angle theorem
corresponding angle postulate
same-side interior angle theorem

Answers

Corresponding angle postulate

Corresponding angles:

When two parallel lines are intersected by a transversal, the corresponding angles have the same relative position.

Here we need to prove ∠3 ≅ ∠7

From the properties of the two parallel line cut by the transversal line, these angle is corresponding angles.

i.e., ∠3 ≅ ∠7 (by the properties of the corresponding angles)

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Which property is illustrated by the equation below?
(7 + 6) + 4 = 7 + (6 + 4)
A. Distributive property
B. Identity property
C. Associative property
D. Commutative property

Answers

[tex]\textsf{Hi Brainy User, I'm Here to Help you!}[/tex]

- - - - - - - - - - - - - - - - - - -

[tex]\textsf{The illustrated property is the associative property, which states that you}\\\textsf{can change the grouping of the numbers, but the result will be the same.}\\\textsf{In other words,}\\\textsf{(a+b)+c=a+(b+c)}[/tex]

[tex]\Large\overbrace{\underbrace{\boldsymbol{\rm{Reflection - RoSe}}}}^\star_\star[/tex]

Which explanation could be used to verify whether the functions are inverses?

Neither of the lines is parallel to the line y = x; therefore, the functions are inverses of each other.
Neither of the lines is parallel to the line y = x; therefore, the functions are not inverses of each other.
The point of intersection of the two functions is not on the line y = x; therefore, the functions are inverses of each other.
The point of intersection of the two functions is not on the line y = x; therefore, the functions are not inverses of each other.

Answers

The explanation that could be used to verify whether the functions are inverses is; The point of intersection of the two functions is not on the line y = x; therefore, the functions are not inverses of each other.

How to Interpret Function Inverses?

If we assume that (a, b) is a point that lies on both the graph y = f(x) and the graph y = f⁻¹(x), then from the second condition, it follows that the point (b, a) lies on the graph of f.

So, we’re looking for a function whose graph includes two points (a, b) and (b, a) and we want a ≠ b. An example is;

f(x) = -1/x³

So that the inverse function is f⁻¹(x) = 1/x^(1/3)

Thus, applying that concept to this question and we can conclude that the point of intersection of the two functions is not on the line y = x; therefore, the functions are not inverses of each other.

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Rewrite in simplest terms: 6k - 7(-k - 7)

Answers

Answer:

13k + 49

Step-by-step explanation:

Hello!

Simplify6k - 7(-k - 7)

Distribute -7 to -k and -7

6k -7(-k) - 7(-7)6k + 7k + 49

Combine like terms (6k and 7k)

13k + 49

The simplified form is 13k + 49.


Tinsley, Incorporated, wishes to maintain a growth rate of 14 percent per year and a debt-equity ratio of .5. The profit margin is 4.6
percent, and total asset turnover is constant at 1.16.
a. What is the dividend payout ratio?
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer
as a percent rounded to 2 decimal places, e.g.. 32.16.

Answers

The dividend payout ratio is -53.43% when a growth rate of 14 percent per year and a debt-equity ratio of .5. The profit margin is 4.6

percent, and total asset turnover is constant at 1.16.

To calculate the ROE we would have to use the following formula:

ROE=Profit margin x Total asset turnover x Equity multiplier

ROE=0.046 x 1.16 x (1 +0.5)

ROE=0.08004

Therefore, dividend payout ratio would be calculated as follows:

0.14 = (0.08004 x dividend payout ratio) / [ 1 - (0.08004 x dividend payout ratio))

0.14 = 0.08004 x dividend payout ratio / (1 - 0.08004 dividend payout ratio)

0.14 - 0.0112056 dividend payout ratio = 0.08004 dividend payout ratio

0.14 = 0.0912456 dividend payout ratio

dividend payout ratio=1.53432

Therefore, dividend payout ratio=1-1.53432

dividend payout ratio=-53.43%

The dividend payout ratio is -53.43% when a growth rate of 14 percent per year and a debt-equity ratio of .5. The profit margin is 4.6

percent, and total asset turnover is constant at 1.16.

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Is it correct ?
Answer please………..

Answers

Answer:

yes, your answer is correct

Answer:

3 + 7 - (-10)

Step-by-step explanation:

> Option 1)

[tex]3 - 7 + (-10)\\\to 3 - 7 - 10\\\to -14[/tex]

> Option 2)
[tex]3 + 7 - (-10)\\\to 3 + 7 + 10\\\to 20[/tex]

> Option 3)

[tex]3 - 7 - (-10)\\\to 3 - 7 + 10\\\to 6[/tex]

> Option 4)

[tex]3 + 7 + (-10)\\\to 3 + 7 - 10\\\to 0[/tex]

Find the average of the numbers:

4 2/5,3/38, 2 3/4
Express your answer as a mixed number or a fraction in lowest terms.

Answers

The average of the numbers expressed as a mixed number is  2⁴⁶⁷/₁₁₄₀

What is the average of numbers?

The average of a given set of numbers is given by X = ∑x/N where

x = individual values of the numbers and N = total number of values

How to find the average of the given numbers?

Since we are given the numbers

x₁ = 4²/₅,x₂ = ³/₃₈, and x₃ = 2³/₄. Since we have three numbers N = 3.

So,the average is X = ∑x/N

= (x₁ + x₂ + x₃)/N

= (4²/₅ + ³/₃₈ + 2³/₄)/3

= (22/5 + 3/38 + 11/4)/3

Taking the L.C.M of the numbers in the bracket. So, the L.C.M of the nunbers in the bracket is 380. So, simplifying, we have

= (1672 + 30 + 1045)/380 ÷ 3

= 2747/(380 × 3)

= 2747/1140

= 2⁴⁶⁷/₁₁₄₀

So, the average of the numbers expressed as a mixed number is  2⁴⁶⁷/₁₁₄₀

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Expand and simplify (2x + 5)2

Answers

Answer:             4x +10

Step-by-step explanation:

Distribute the 2 to both terms

2*2x + 2*5

4x + 10

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