Answer:
False
Explanation:
Given that PPC is an acronym or abbreviation for Pay Per Click, and it is a form of an advertising campaign in which search engines are paid to show or display a link such as a short URL to a firm's website together with either organic search results or in another website.
Hence, the idea that the first step to creating a PPC advertising campaign on SEs is to select keywords associated with the campaign is FALSE
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:
$80 per share.
Explanation:
Given: Dividend= $12.60
Rate of return= 15.75%
Now, finding the price per share.
Formula; Price per share= 
⇒ Price per share= 
⇒ Price per share= 
∴ Price per share= $80 per share.
Hence, price per share is $80 for Morristown Industries.
