Answer:
The correct answer is a) organizational ethics
Explanation:
Organizational ethics refer(s) to the moral values, beliefs, and rules that establish the appropriate way for an organization and its members to deal with each other and with people outside the organization.
Organization ethics show the principles which decide the way that an employee should act at the workplace. It refers to the conduct code of a company.
Answer:
Both A and B are true.
- A. All else held constant, if a company has a beta of 1.2, then the cost of equity for this company will increase if the risk-free rate decreases.
- B. If you assume a company has debt, then an increase in the tax rate will decrease the weighted average cost of capital for the company.
Explanation:
A)
The formula to calculate the cost of equity is:
cost of equity = risk free rate of return + [Beta × (market rate of return – risk free rate of return)]
e.g. market rate 15%, risk free rate 5%:
cost of equity = 5% + [1.2 x (15% - 5%)] = 5% + 12% = 17%
if the risk free rate decreases to 3%:
cost of equity = 3% + [1.2 x (15% - 3%)] = 3% + 14.4% = 17.4%
B)
the WACC formula = (cost of equity x weight of equity) + [cost of debt x weight of debt x (1- tax rate)]
if the tax rate increases, then the WACC will decrease because (1 - tax rate) will be lower.
C. at the end of the accounting period
Cash flow statement
hope this helps
Answer:
$1,260,000
Explanation:
Property Dividend is declared on 25th May, The net effect on this property dividend on retained earning is reduction of $1260000.