A) money is the scarce resource because you only have enough money for one item
B) movie or pizza
C)?
Answer:
20.1%
Explanation:
In capital asset prcing model (CAPM), cost of equity (or cost of retained earnings in this context) is calculated as below:
<em>Cost of equity = risk-free rate of return + beta x (market index return - risk-free rate of return)</em>
Please note that <em>(market index return - risk-free rate of return)</em> is equal to <em>market risk premium</em>
Putting all the number together, we have:
Cost of equity/retained earnings = 2.5% + 2.2 x 8% = 20.1%
<em>Note: The dividend growth rate, tax rate & stock standard deviation is not relevant in answering the question.</em>
Answer:
False
Explanation:
When <u>a multinational organization owns and controls productive assets in foreign countries through investment</u>, it is known as Foreign Direct Investment (FDI) and NOT relative efficiency of production.
FDI may be carried out through mergers and acquisitions, joint ventures and building facilities in other countries.
Answer:
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Explanation: