The company's external equity comes from those funds raised from public issuance of shares or rights. The cost of external equity is the minimum rate of return which the shareholders supply new funds <span>by </span>purchasing<span> new shares to prevent the decline of the market value of the shares. To compute the cost of external equity, we should use this formula:</span>
Ke<span> = (DIV 1 / Po) + g</span>
Ke<span> = cost of external equity</span>
DIV 1 = dividend to be paid next year
Po = market price of share
g = growth rate
In the problem, the estimated dividend to be paid next year is $1.50. The market price is $18.50 and the growth rate is 4%.
<span>Substituting the given to the formulas, we need to divide $1.50 by $18.50 giving us the result of 8.11% plus the growth rate; this would yield to the result of 12.11% cost of external equity.</span>
I think the answer to the factor that makes an IRA superior to a regular stock portfolio for saving for retirement is that <span>IRAs usually include employer contributions. The answer is letter D.</span>
Power retailers are the stores that rely on their large size and very deep selection to try to dominate the market.
Specialty stores are small, so you can eliminate that option immediately. Department stores are usually found within another store, so that's not correct too. Discounters don't have a very deep selection, they usually sell a lot of various things. Anchor stores are found within malls, so that's incorrect too.
Answer:
false
Explanation:
Barcelona has a network structure because it works with staffing agencies to fill many vacant positions.
When a company has a network structure, it works with other companies in order to produce a good or service (outsourcing). In this case, Barcelona outsources some of its human resources functions to other companies.
Answer:
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- <u><em>Law of demand</em></u>
<u><em></em></u>
Explanation:
Indeed, the <em>law of demand </em>is that the price and quantity demanded are inversely related. <em>Ceteris paribus</em>, the economist say. It is a latin expression that means "<em>other things equal</em>".
As the resources are, per definition, scarce, the consumers, ecomomic agents who buy the products, need to allocate the money among the different goods and services that the market puts at their disposal.
And they allocate the resources in a intelligent way: they "calculate" the utility of each product considering the cost. If the price increase, the ratio of utility to cost decreases and the consumer will diminish the quantity demanded for that good. If the price decrases, the utility to cost ratio increases and the quantity demanded will increase.
