The risk-free rate of return is 5.5%, the expected rate of return on the market portfolio is 13%, and the stock of xyrong corporation has a beta coefficient of 2.9. xyrong pays out 45% of its earnings in dividends, and the latest earnings announced were $8.00 per share. dividends were just paid and are expected to be paid annually. you expect that xyrong will earn an roe of 15% per year on all reinvested earnings forever.

Prairie, inc. produces one single product. it has an annual capacity of 10,000 units, but currently uses only 80% of it. each unit is sold for $50 and requires direct material worth $30 and direct labor worth $5. manufacturing overhead cost is $10 per unit of which 70% is variable. should a special order to sell 1,000 units at $44 be accepted? yes no

Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less

He interest rate effect is the change in real gdp caused by the federal reserve adjusting target interest rates. is the change in consumer and investment spending due to changes in interest rates resulting from changes in the aggregate price level. is the change in exports and imports, resulting from changes in the interest rate caused by changes in the aggregate price level. is the change in investment spending and government purchases caused by changes in money demand. is the change in interest rates, caused by changes to government purchases.