As prosperity and economic development rise, individualism increases as well.
Individualism refers to the freedom of someones actions. If the economy is doing well and someone has more money, they are more likely to spend their money freely. The person has moral worth as an individual.
Answer:
i. buy put option
ii. Proceeds will be as follows:
$50 : 2,000,000
$60 : 2,400,000
$70 : 2,800,000
$80 : 3,200,000
Explanation:
i. A put is option is one in which buyer of the option has a right to sell the asset at an agreed price at a later date. There can be a premium on the purchase of an option but its safe to buy an option to reduce risk exposure.
ii. $50 : 2,000,000 (40,000 barrels * $50)
$60 : 2,400,000 (40,000 barrels * $60)
$70 : 2,800,000 (40,000 barrels * $70)
$80 : 3,200,000 (40,000 barrels * $80)
Answer:
16.23%
Explanation:
The formula share price below can be used to determine the cost of new common equity by making the cost of equity Ke the subject of the formula as below:
cost of retained earnings=dividend/share price+dividend growth rate
15.5%=$3.36/$32+dividend growth rate
dividend growth rate=15.5%-($3.36/$32)=5.00%
Cost of new equity=dividend/share price(net of flotation cost)+dividend growth rate
share price(net of flotation cost)=$32*(1-6.5%)=$29.92
Cost of new equity=($3.36/$29.92
)+5.00%
cost of new common equity=16.23%
Answer:
A. Rescission
Explanation:
Rescission is defined as the unwinding of the transaction that has been done through contract or the unmaking or canceling of the contract.
Rescission is done in order to bring the parties in the contract back to their initial position i.e the position before entering into the contract.
The party who wants the rescission should offer to return all the benefits that has been received under the contract.