Answer:
the formula used to calculate the cost of equity (required rate of return) based on the bond yield plus risk premium is fairly simple:
cost of equity (Re) = yield of debt (bonds) + firm's risk premium = 11.52% + 3.55% = 15.07%
I'm not sure if the question was copied correctly or not, so I looked for similar questions and it included different numbers.
<em>The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Harrison's bonds yield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Harrison's cost of Internal equity is: = 10.28% + 4.95% = 15.23%</em>
<em>Another question: </em>
<em>The Kennedy Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Kennedy's bonds yield 11.52%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Kennedy's cost of internal equity is: = 11.52% + 4.95% = 16.47%</em>
Answer:
$3,220.90
Explanation:
Expected Return = $517 * 12 months * 20.8 years
Expected Return = $129,043.20
Exclusion Percentage = $62,000/ $129,043.20
Exclusion Percentage = 0.4804593
Exclusion Percentage = 48.05%
Exclusion amount = $6,200 * 48.05%
Exclusion amount = $2,979.1
Amount included in Income = $6,200 - $2,979.1
Amount included in Income = $3,220.90
Answer:
How to achieve improved outcomes for groups that have specific set of objectives focusing on how the concepts can be used to make a difference across the group
- making each member of the group understand each other emotionally and their ways of performing tasks
- making each member of the group understand their importance in the entire production process
- making the group members aware about the importance of optimum utilization of resources and avoid wasting resources while working
- making the group understand the possibility of achieving good performance by eliminating work threats
- making the group understand the organization's structure therefore it makes the group culturally intelligent
How you can improve positive influences and especially preempt or limit negative sentiments
- increasing the dependency culture among each other so they learn to work with each other in harmony.
- creating friendly relationships between employees and also between employees and employer
- making the employees understand and practice proper organizational culture so that they can work judiciously following the organizational structure
Explanation:
Note :
CQ = cultural intelligence
EI = emotional intelligence
AP = actual productivity
PP = potential productivity
S = synergy
T = performance threats
How to achieve improved outcomes for groups that have specific set of objectives focusing on how the concepts can be used to make a difference across the group
- making each member of the group understand each other emotionally and their ways of performing tasks
- making each member of the group understand their importance in the entire production process
- making the group members aware about the importance of optimum utilization of resources and avoid wasting resources while working
- making the group understand the possibility of achieving good performance by eliminating work threats
- making the group understand the organization's structure therefore it makes the group culturally intelligent
How you can improve positive influences and especially preempt or limit negative sentiments
- increasing the dependency culture among each other so they learn to work with each other in harmony.
- creating friendly relationships between employees and also between employees and employer
- making the employees understand and practice proper organizational culture so that they can work judiciously following the organizational structure
Cash is the real money that we have while cash equivalents are instruments that can be turn to cash quickly. They are very liquid.
Treasury bills are cash equivalents. They are very liquid and can be converted into cash quickly. They are instruments in the money market.
Going by this above explanation, the Cash and Cash Equivalents that will be reported on the balance sheet are:
Cash --------------------------------------- $1,900
Treasury bills purchased--------------$500
Total-------------------------------------------<u>$2,400</u>
<u></u>
$2,400 will be reported as Cash and Cash Equivalents on the balance sheet.
