Answer:
The company's cost of equity capital is 0.056
Explanation:
cost of equity capital
= risk free rate + beta*(expected return on market - risk free rate)
= 0.01 + 0.92*(0.06 - 0.01)
= 0.056
Therefore, The company's cost of equity capital is 0.056
Answer:
Ccredibility from being associated with the investor.
Contacts for potential customers or employees.
Contacts with investment bankers, accountants, lawyers and other professionals.
Marketplace knowledge and strategies used in similar companiess.
Explanation:
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C) Equity
Equity is usually a subjective matter aka fairness
Answer:
The cash proceeds is $224,540
Explanation:
The implication is that the bonds were issued at a premium. A bond issued at a premium is issued above its par value. This means that investors pay more than the face value for investing in the bonds. They are usually compensated with higher interest rates.
Bonds can also be issued at a discount. This happens when the issue price is less than the par value. The par value is the face value or nominal value. Bonds can be issued at a discount when the interest rate is lower than the yield rate.