Cost of equity is calculated as -
Cost of equity = Risk free return + Beta * (Market risk - Risk free return)
Given,
Risk free return = 5.3 %
Market risk = 12 %
Beta = 1.05
Cost of equity = 5.3 % + (1.05*(12-5.3%))
Cost of equity = 12.335 % or 12.24 %
Answer:
C. protects the current shareholders against a dilution of their ownership interests.
Explanation:
Preemptive rights are rights given to shareholders in an organization allowing them to buy additional shares in any future issue in order to maintain their percentage ownership, before the shares are available to the general public. It guards against dilution or decrease in a shareholders stake or ownership interest buy allowing them buy more shares for future issues before it is available for the general public to own shares. In doing so, shareholders avoid involuntary dilution.
Answer:
1,065 U
Explanation:
Materials Price Variance = Actual Quantity Purchased * (Standard Price – Actual Price)Actual Price= Total Cost / Quantity Purchased
= ($27,690 /21,300 )=$ 1.3
=21,300* [$1.25 – $1.3]
=21,300*0.05
=1,065 U
During May, the materials price variance for part XBEZ52 was 1,065 which is Unfavourable because the actual
purchase price is higher than standard.
Increament in government spending which is financed by borrowing will most likely affect national savings.
This is because borrowing money means you are spending from your future income.
The negative effect of spending borrowed money will most likely be felt when the money is not used for money yielding ventures.
This means that when borrowed money is not used to boost the economy of a country, it will most likely lead to the depletion of the national savings or reserve.
<h3>Viable areas to utilizing borrowed money</h3>
- Infrastructure development
- power
- Education
- Health
- Transportation
- Research
Learn more about National Savings at brainly.com/question/15109837
