Assume that investors have recently become more risk averse, so the market risk premium has increased. also, assume that the risk-free rate and expected inflation have not changed. which of the following is most likely to occur? a. the required rate of return on the market, rm, will not change as a result of these changes. b. the required rate of return will decline for stocks whose betas are less than 1.0. c. the required rate of return for an average stock will increase by an amount equal to the increase in the market risk premium. d. the required rate of return on a riskless bond will decline.

What is the equity method balance in the investment in lindman account at the end of 2018?

Your sister is thinking about starting a new business. the company would require $375,000 of assets, and it would be financed entirely with common stock. she will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an roe of 13.5%. how much net income must be expected to warrant starting the business? a. $41,234b. $43,405c. $45,689d. $48,094e. $50,625

Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 20 years. assume you purchase a bond that costs $25. a. what is the exact rate of return you would earn if you held the bond for 20 years until it doubled in value? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. if you purchased the bond for $25 in 2017 at the then current interest rate of .27 percent year, how much would the bond be worth in 2027? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. in 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2037. what annual rate of return will you earn over the last 10 years? (do not