Answer:
The firm's cost of equity is C. 14.05 percent
Explanation:
Hi, we need to use the following formula in order to find the cost of equity of this firm.
Where:
r(e) = Cost of equity
rf = risk free rate
rm = Market rate of return
Everything should look like this.
So, this firm´s cost of equity is 14.05%
Best of luck
The price of the bond if the yield to maturity falls to 7%, based on the period and amount will be $1,620.45.
<h3>What is the price of the bond at 7%?</h3>
We shall assume that the bond has a face value of $1,000.
The coupon is:
= 12% x 1,000
= $120
The price is:
= (Coupon x Present value interest factor of annuity, 30 years, 7%) + Face value of bond / ( 1 + rate) ^ number of periods
= (120 x 12.409) + (1,000 / (1 + 7%)³⁰)
= $1,620.45
Find out more on bond pricing at brainly.com/question/25596583.
This company's accounting records are: Incorrect because debits side do no equal credits side.
<h3>Accounting record</h3>
Based on the information given their is an error when recording the journal entry reason been that we are supposed to credit cash with the amount of $200 and not $20.
Due to this error this company's accounting records will be wrong or Incorrect based on the fact that the debits side do no equal credits side.
The principle of accounting entry states that "Every debit entry must have a corresponding credit entry and every credit entry must have a corresponding debit entry"
The correct entry was supposed to be:
Debit Account payable $200
Credit Cash $200
Inconclusion this company's accounting records are: Incorrect because debits side do no equal credits side.
Learn more about accounting record here:brainly.com/question/26282268
I think it’s B: the 529 college savings only
Answer:
A. relatively inelastic comma as compared to the short minus run demand
Explanation:
Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.
In the short run, an increase in gasoline prices may be unwelcome by consumers who may stop buying gasoline, meaning that in the short run the demand for gasoline tends to be elastic. However, over time consumers have realized that the price hike has not been temporary and that the new price is indeed a reality. Since gasoline is a commodity of great need for car owners, the tendency is for consumers to adapt to the new price in the long run, making demand more inelastic.
