Answer: Ke = D1/Po + g
Ke = $3.50/$50 + 0.06
Ke = 0.07 + 0.06
Ke = 0.13 = 13%
Explanation: Cost of equity is a function of dividend in 1 year's time divided by the current market price plus growth rate. D1 represents dividend in 1 year's time, Po denotes the current market price and g is the growth rate.
Answer:
The correct answer is letter "A": conservatives; liberals.
Explanation:
Two main approaches define how societies could achieve economic and political prosperity. Conservatives are in favor of little government intervention since individuals must be empowered to take responsibility for their own wellness. They are in favor of <em>market economies</em> -<em>price driven by supply and demand.
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Liberals, on the other hand, propose the government must intervene to ensure individuals have equal opportunities. Liberals prefer<em> mixed economies </em>which are mixtures of market economies and command economies -<em>the government is the central planner.</em>
Answer:
C. Private companies can go public by choosing to sell stock to attract permanent financing through equity ownership of the company.
Explanation:
Private companies could go to the general public by selecting to sale the stocks in order to attract permanent financing via equity ownership of the company because they can sale the shares easily on the primary market in order to increased the finance also it will be help for raising the firm for the long period as the equity financing is considered for the long term financing
Hence, the option c is correct
An economic theory holding that the constant gradual expansion of the money supply is the key to a nation's economic health is monetarism. Those who believe in and use the economic theory monetarism believe that if you have too much cash and credit in circulation then too much inflation will be the result. They want the government to control the money that is supplied in hopes to encourage economic growth and keep inflation down.
If a country has the capacity to produce 3 million cars and 100 million tons of ion ore, but is only able to produce 2 million cars and 75 million tones of ire one, the country is underutilizing it's natural resources and productivity.
In business terms, the country has the capacity to produce over 1 million more cars and 25 million tones of more iron ore. The country is losing out on billions of dollars of revenue.