Bell Computers is a computer hardware company with an equity beta of 1.5, whereas Macrosoft is a software company with an equity beta of 1.2. Assume that both firms are all-equity financed. Suppose that Macrosoft wants to invest in a project to build computer hardware, like Bell. What is the appropriate discount rate for this project? Assume that the CAPM holds. The risk-free rate is 1% and the market risk premium is 6%.

answer; ///the correct answer is (ftc) federal trade commission;

answer; common market;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; experimentation;