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11Alexandr11 [23.1K]
2 years ago
6

Which component is more likely to be biased if book values are used in the calculation of wacc rather than market values?

Business
1 answer:
Luden [163]2 years ago
5 0

<u>Common Stock</u> is more likely to be biased if book values are used in the calculation of WACC rather than market values.

<h3><u /></h3><h3><u>How Does Common Stock Work?</u></h3>

Security called common stock serves as a proxy for a company's ownership. Common stockholders decide on corporate policies and elect the board of directors. Usually, long-term returns from this type of stock ownership are higher.

Common shareholders, however, do not have any rights to a company's assets in the case of liquidation until all bondholders, preferred shareholders, and other debt holders have been fully compensated. On a company's balance sheet, common stock is listed under stockholders' equity.

<u>How Do I Cast a Ballot Using Common Stock at Corporate Meetings?</u>

Ordinary common shares typically have one vote per share, giving shareholders the ability to cast a ballot on corporate decisions, which are frequently made at a company's annual meeting of shareholders. If you're unable to vote in person, you can choose to have a representative vote on your behalf if you choose (along with others who cannot attend).

Votes may be taken on matters like whether to merge with or purchase a business, elect board members, or consent to dividends or stock splits.

Learn more about the WACC with the help of the given link:

brainly.com/question/14223809

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Money serves a good store of value unless an economy experiences a period of rapid inflation.
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​Ernst's Electrical has a bond issue outstanding with ten years to maturity. These bonds have a​ $1,000 face​ value, a 5 percent
SVEN [57.7K]

Answer: 5.52%

Explanation:

Given the following :

Face value (f) = $1000

Bond price(p) = 96% of face value = 0.96 × 1000 = $960

Coupon rate = 5% Semi-annually = 0.05/2 = 0.025

Payment per period (C) = 0.025 × 1000 = $25

Period(n) = 10 years = 10 × 2 = 20

Semiannual Yield to maturity = [(((f-p)/n) + C) / (f + p)/2]

Semiannual YTM = [(((1000 - 960) / 20) + 25) / (1000 + 960)/2]

Semiannual Yield to maturity = [(((40 /20) + 25) / 1960/2]

= (2 + 25) / 980

= 27 / 980 = 0.02755 = 2.755% = 2.76%

Pretax cost of debt = Yield to maturity = 2 × Semiannual yield to maturity

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8 0
3 years ago
Compared with individuals working in the private sector, public employees do not have ______. a. more stringent codes of ethical
yawa3891 [41]

Answer:

Option A. More stringent codes of ethical behavior

Option B. Higher levels of education,

and

Option D. A greater commitment toward civic duty,

Explanation:

The public employees have to adhere to stringent codes of ethical behavior because the public employees are professionals and professionals are always highly qualified personal. Their commitment towards the civic duty is high because they are obliged to act in the public interest and not act in a manner that his profession dignity gets affected. The level of experience, education, professionalism, adherence to ethical and company code, results in higher employee compensations.

Hence the Option A, B and D are correct options.

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An important textile industry developed across the islamic world propelled by the staple crop of?
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          The textile industry in the Islamic world rose after the time of Prophet Mohammad in the year 632 A.D.

          Islamic robes were considered to be of very high quality, and they were made in both caliphal and public-run industries. These robes were presented to higher people to honor and respect them.

          With the propelling of the cotton crop, the Islamic textile factory flourished as they got beautiful cotton fabrics to create more amount of products. With cotton, they could also produce canvases for the sails of the ships.

           Another fabric that was used by the Islamic textile industries was linen.

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