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loris [4]
3 years ago
15

Your consultant firm has been hired by Eco Brothers Inc. to help them estimate the cost of common equity. The yield on the firm'

s bonds is 8.75%, and your firm's economists believe that the cost of common can be estimated using a risk premium of 3.85% over a firm's own cost of debt. What is an estimate of the firm's cost of common from reinvested earnings?a. 12.60%b. 13.10%c. 13.63%d. 14.17%e. 14.74%
Business
1 answer:
zloy xaker [14]3 years ago
8 0

Answer:

a. 12.60%

Explanation:

The information given above that can be useful is the Risk Free rate and risk premium to calculation of cost of retained earnings.

We know that the calculation of cost of retained earnings =Cost of retained earnings = Risk Free rate + risk premium  

= 8.75% + 3.85%  

= 12.6%

Therefore the correct answer is a. 12.60%

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Government purchases include government spending on.
valina [46]

Government purchases include government spending on the following:

  • Infrastructure projects
  • Paying the civil service and public service employees
  • Buying office software and equipment
  • Maintaining public buildings.

<h3>What is government spending?</h3>

Government spending is classified as follows:

  • Mandatory spending
  • Discretionary spending
  • Payment of interest on debts.

Thus, government purchases include government spending for the <u>purchase of goods and services</u>.

Learn more about government spending at brainly.com/question/25125137

4 0
2 years ago
Lillian has a master's degree in logistical engineering. She has worked with large
Art [367]
C is the correct answe
7 0
3 years ago
Shawn is planning a bus trip across town that involves three buses. Bus 1 travels between Shawn’s house and downtown, and it lea
miv72 [106K]

Answer:

least waiting time = 18 mins

Explanation:

given as per question we know that 2nd bus start 10 min early than 1st bus

and both time frequency same = 30 min

1st bus time take = 1 hr 12 mins

and 2nd bus get waiting time 30 min - (10 + 12)

that is = 8 mins

so

we can say  time arrival time for 1st bus = 8:32 and 9:02  and 9:32

by adding 30 mins

and

departure time for 2nd bus =  8:40 and 9:10 and 9:40

same like that 3rd bus leave every hour

and

service start on hour clock , a 10 mins early is = 7:10 am and 9 am

frequency of either half or 1 hour

so 2nd bus takes =  2 hour 40 mins

so waiting time is 60 - (10 - 40) = 10 min or 10 + 30 = 40 mins

so 1st bus waiting time is 8 mins so it take least time 10 mins for 2nd bus waiting time

as that

least waiting time = 8 + 10

least waiting time = 18 mins

4 0
3 years ago
2. Some companies have eliminated the collection and reporting of detailed analysis on direct labor costs broken down by various
kherson [118]

Answer:

The description would be presented downwards and as per the circumstance presented.

Explanation:

  • Instead of assigning resources associated with a specific frequency, activity based costs which always track costs on the basis seem to be an essential component of cost accounting because that would be a more effective means for providing resources.
  • The costs when implementing some activity based accounting systems, furthermore, are even less than the potential advantages of moving towards this framework only then would it have been simpler as well as productive for the growing company ABC.
  • Throughout the case situation, the claim whether direct labor constitutes a member of a minority fraction of the overall wages should not be an excellent explanation for either not apportioning production wages contingent on the operation, but if the organization determines that the expense of someone using ABC to assign labor profitability of different practices is greater than advantages, the organization increasing turn to something like an optimization model for that frequency.
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3 years ago
One of the tasks for financial managers when identifying projects that increase firm value is to identify those projects where
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Taking the project will decrease the book value of the firm's debt outstanding
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