Answer:
Cost of equity = 19.1
%
Explanation:
Cost of equity = required rate of return + flotation cost
The Capital assets pricing model would be used to determined the required rate of return
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c </em>
Using the CAPM , the required rate of return is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) - required return
β- Beta
Rm- Return on market
Rf- Risk-free rate
DATA
E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%
E(r) = 3% + 1.1× (14% - 3%) = 15.1
%
Cost of equity = required rate of return + flotation cost
= 15.1
% + 4% = 19.1
%
Cost of equity = 19.1
%
Different segments of the project are delegated to respective functional units called as the Functional Organization.
<h3>
What is a Functional Organization?</h3>
The notion of specializations based on function or role is used by functional organizations as a sort of organizational structure. For businesses with one or a few product offerings as well as medium-sized and small organizations, an efficient organizational structure is ideal. For instance, the little company AB Company manufactures diapers and employs around one hundred people. A matrix organization is a sort of corporate structure that divides a corporation into various sections according to areas of specialization. Functional managers or heads of departments are responsible for managing these departments, which act as functional units.
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As per ALS or administrative license suspension or revocation, a blood alcohol concentration of 0.08% or higher will automatically suspend you administratively aside from refusing to submit a chemical test. Automatically, licenses will be confiscated and will be suspended of criminal proceedings independently.
Answer:
C. The Fed should target the money supply, not the interest rate, and that it should adopt the monetary growth rule.