Answer:
The multiple choices are:
9.98 percent
10.04 percent
10.79 percent
10.37 percent
10.45 percent
The third option of 10.79% is correct
Explanation:
The cost of equity according to Miller and Modgiliani capital asset pricing model is given below:
Ke=Rf+beta*(Mrp-Rf)
Rf is the risk free rate which is the return on government security is 2.7%
beta is 1.14
Mrp is the market risk premium is 7.1% which is given in the formula as (Mrp-Rf)
Ke=2.7%+1.14*7.1%
Ke=2.7%+8.09%
Ke=10.79%
Hence the correct option out of the options given above is the third option
It is expected that any shareholder that invests in the shares of Southern Home Cooking would get return of 10.79%
Answer:
Corporation
Explanation:
This is a corporation since it is separate from business owners. The operations of an organisation are generally controlled by the people who are called shareholders. If one business owner or entrepreneur suddenly dies, it will not affect the operations of the corporation, and the company will stay and operate. In the case of the shareholder, the shares will be transferred to a family member.
Answer:
E) No, because there is no diversity of citizenship federal jurisdiction.
Explanation:
All the parties involved in this case are citizens of Vermont, so Susan cannot sue Will and Frank's Furniture in a federal district court, she should sue them at a state court.
Diversity of jurisdiction applies to cases over $75,000 and that involve citizens of two or more different states. In this case the case is for more than $75,000 ($80,000) but the parties involved are all from the same state.
Answer:
A firm is deciding how much of its equipment to sell so that it can reduce its monthly loan payments for equipment.
Answer:
True
Explanation:
because it gives mor information
