Answer:
e. 14.60%
Explanation:
The computation of Oval's cost of new common equity is shown below:-
Price of stock = Estimated dividends for next period ÷ (Required rate of return - Growth rate)
Dividend = $1.50 × (1 + 4%)
= $1.56
Price of stock would be the price net of flotation cost
= $16 × (1 - 8%)
= $14.72
Required rate of return
= (1.56 ÷ 14.72) + 0.04
= 14.60%
Answer:
Interest expense $ 11.15
Explanation:
As the bank uses the average daily balance excluding new purchases we should use that amount to solve for the interest expense.
The rate is one and a half percent therefore, 1.5% --> 0.015
principal x rate = interest
$743 x 0.015 = $ 11.145
Answer:
Ans. The equilibrium rate of return on a 1-year Treasury bond is 6.65% (please check the explanation)
Explanation:
Hi, well, this type of bonds exist so people can avoid the time value of money risk, in other words, to keep money save from inflation and provide a risk free return at the same time. From a part of the text I can tell that the person who wrote it wanted to add up the risk free rate and the inflation rate, that is 3.05%+3.60% =6.65%.
This is why I wrote this answer, but the truth is that since they are both effective rates (risk free rate and inflation), they need to be add as effective rates, that is:
Therefore
So the real equilibrium rate of return is 6.76%, but for the sake of the question, I wrote 6.65%.
Best of luck.
Answer:
The answer is options A) and B)
A) learning the basic communication skills of the residents of the areas they are serving:
B) a multicultural clientele.
Explanation:
In crisis periods like the one we are currently experiencing as a result of the Covid-19 Pandemic, It is of utmost importance that the recruitment, screening, orientation, training, evaluation, and retention of crisis workers deal with the reality of:
A) learning the basic communication skills of the residents of the areas they are serving: this procedure takes place during the orientation, training and evaluation stage.
B) a multicultural clientele: The accurate knowledge of multi-cultural clientele guides the order of recruitment in the sense that, workers are properly assigned to the area that matches their experience, skill set and cultural inclination.
Answer:
False
Explanation:
If an investment project can be repeated, i.e. its life cycle can be extended by reinvesting, the NPV of the project will change.
When considering two mutually exclusive projects, the NPV method should always be considered before the IRR as a means of evaluating which project should be carried out.
