Answer:
The company's cost of capital will be "13%".
Explanation:
The given values are:
Risk free rate
= 5
Beta
= 1.25
Market risk premium
= 8
Now,
⇒ 
On substituting the estimated values, we get
⇒ 
⇒ 
The total value will be:
= 
= $
As we know,
⇒ 
⇒ 
⇒ 
⇒ 
Note: % = percent
Answer:
The banking industry is one of the fast growing industry globally.
The major liability of the bank is the total deposit made by various individual, household, and firms.
The basic assets of a bank is the loan it lend out to its customers and the reserve it keeps with the the central bank. For instance, in Nigeria, all commercial banks are expected to be #25 billion naira with the central bank of Nigeria.
Banks are profit maximize, each banks constitutes its management with well-trained finance practitioners who specializes in wealth maximization. The bank keeps minimum reserve for profit maximization.
Explanation:
Answer: On the job training
Explanation:
They ate required to learn as they are employed by a superior then they are assigned a machine which in due time would make them superior too after they become skilled. This cycle continues so even though one may not have much prior knowledge they can learn on the job.
Answer:
$9.40
Explanation:
First we have to calculate the future value of the stock when it starts to pay the $1.40 using the perpetuity formula:
stock price in 7 years = $1.40 / 10.7% = $13.08
Now we have to find the present value of both next year's dividend and the perpetuity:
stock price = ($3.30 / 1.107) + ($13.08 / 1.107⁷) = $2.98 + $6.42 = $9.40
