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Serggg [28]
1 year ago
13

According to the tort doctrine of ________, any time an employee is liable for tortious acts in the scope of employment, the emp

loyer is also liable. Group of answer choices nolo contendere respondeat superior promissory estoppel novation frolic and detour
Business
1 answer:
My name is Ann [436]1 year ago
7 0

According to the tort doctrine of <u>respondeat superior</u> , any time an employee is liable for tortious acts in the scope of employment,

<h3>What is tortious acts?</h3>

Tortious acts is an act that occur when a person is harm as a result of another action which inturn lead to legal liability for the person who committed the act.

Hence, Respondeat superior stated that an when an employee is liable for committing  tortious acts the employer is as well liable for the same act.

Learn more about Tortious acts here:

brainly.com/question/15570864

#SPJ1

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Answer:

$16,440

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Trendsetters has a cost of equity of 14.6 percent. the market risk premium is 8.4 percent and the risk-free rate is 3.9 percent.
BabaBlast [244]
Given:
<span>cost of equity of 14.6 percent
</span><span>market risk premium is 8.4 percent
</span><span>risk-free rate is 3.9 percent
</span><span>increase company's beta to 1.4 after purchase.

We will use the CAPM or Capital Asset Pricing Model formula to solve the new cost of equity.

</span>

Re = rf + (rm – rf) * β 

Where:

<span>Re = the required rate of return on equity
<span>rf = the risk free rate
</span><span>rm – rf = the market risk premium
</span>β = beta coefficient = unsystematic risk</span><span>

</span>We need to solve for the original beta coefficient using the given cost of equity, market risk premium and risk free rate.

Re = rf + (rm – rf) * β<span> 
14.6% = 3.9% + 8.4% * </span>β
14.6% - 3.9% = 8.4% * β
10.7% / 8.4% = β
1.27 = β
<span>
The initial beta coefficient is 1.27. 

Using the same risk free rate, market risk premium, and a new beta coefficient of 1.4, we need to solve the cost of equity.

</span>Re = 3.9% + 8.4% * 1.4
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Re = 15.66% 

The new cost of equity after purchasing a company is 15.66%. It increase from 14.6% by 1.06%.

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