Required Rate of Return As an equity analyst you are concerned with what will happen to the required return to Universal Toddler' stock as market conditions change. Suppose rRF = 4%, rM = 8%, and bUT = 2.2. Under current conditions, what is rUT, the required rate of return on UT Stock?
Round your answer to two decimal places. 12.8 %
Now suppose rRF increases to 5%. The slope of the SML remains constant. How would this affect rM and rUT?

I. rM will increase by 1% and rUT will remain the same.
II. Both rM and rUT will decrease by 1%.
III. Both rM and rUT will remain the same.
IV. Both rM and rUT will increase by 1%.
V. rM will remain the same and rUT will increase by 1%.

The management at a pesticide manufacturing company has observed a decline in quality measures. the managers ask robin, the firm's hr manager, to investigate whether training might solve the problem. robin conducts needs assessment and recommends a training plan. which of the following conditions would most likely have been an observation during robin's person analysis?

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.

Salt corporation's contribution margin ratio is 78% and its fixed monthly expenses are $30,000. assume that the company's sales for may are expected to be $89,000. required: estimate the company's net operating income for may, assuming that the fixed monthly expenses do not change.