Nagel equipment has a beta of 0.88 and an expected dividend growth rate of 4.00% per year. the t-bill rate is 4.00%, and the t-bond rate is 5.25%. the annual return on the stock market during the past 4 years was 10.25%. investors expect the average annual future return on the market to be 14.75%. using the sml, what is the firm's required rate of return? do not round your intermediate calculations.

13.61%

Step-by-step explanation:

Data provided in the question:

Beta = 0.88

Dividend growth rate = 4.00% per year

T-bill rate = 4.00%

T-bond rate = 5.25%

Annual return on the stock market = 10.25%

Average annual future return on the market = 14.75%

Now,

Required rate of return

= Risk free rate + [ Beta × ( Market rate - Risk free rate ) ]

or

Required rate = 5.25% + [ 0.88 × (14.75% - 5.25% ) ]

or

Required rate = 5.25% + [ 0.88 × 9.5% ]

or

Required rate = 5.25% + 8.36%

or

Required rate = 13.61%

all group life insurance is term insurance. actually it is annual renewable term and it is rated on the average age and claims experience of the entire group, which is called "experience rating." remember, this type of insurance has a 31-day grace period and is convertible to whole life upon leaving employment. a contributory group plan requires that both the employer and the employees pay part of the premium. at least 75% of those eligible must participate, so the group is sure to get most of the healthy employees as well as those that are sick.

step-by-step explanation:

an = 22 + (n-1) *6

110 seats

step-by-step explanation:

an=a1+(n-1)(d)

a1 = 22   this is the first item in the sequence

d =6   this is how the sequence goes up

a)   an = 22 + (n-1) *6

b) a12 = 22 + (12-1) *6

    a12 = 22+11*6

  a12 = 22 +88

  a12 = 110