Answer:
Equal to
Explanation:
Financial theory assumes that financial markets are efficient and that there is no information failure in conducting financial transactions. However, this is an assumption and there could, in some instances, be asymmetric information in the form of adverse selection and moral hazards. For example, if managers of a corporation know how well or how poorly their business is doing than stockholders (as organizational performance determines the price of a security), then there would be an information failure or informational inefficency. Also, a potential investor who cannot distinguish between a firm whose security has a high potential for profit and low risks compared to that with a low potential for profit and high risk will be willing to pay a price that lies between the value of stock from bad firms and the value of stock from good firms. This will not augur well for good firms as their stock is underpriced and they will be reluctant to sell.
When the financial market is efficient, investors of stock would be able to earn supernormal returns on their investments. It is therefore neccessary that the price of a corporation's common stock should be equal to the present value estimate of the firm's expected cash flows discounted by it appropriate rate of return.
Answer: 7.67%
Explanation:
To solve this, the financial calculator will be needed
Present value = -896.87
Future Value = 1,000
N = [(25 - 5years) × 2 = 40
PMT = $45
Given the above information, we will press the financial calculator as we'll press CPT after which we then press I/Y and we'll get 5.11%
Then, the the firm's after-tax cost of debt will be:
= (5.11% x 2 )(1 - 0.25)
= (0.0511 × 2) (0.75)
= 0.07665
= 7.665%
= 7.67%
Answer:
<em>False</em>
Explanation:
I jus got it right on the assignment.
The given statement "Examples of company-wide applications, called legacy applications, include order processing systems, payroll systems, and company communications networks" is False.
<h3>
What is an enterprise application?</h3>
- A big software system platform known as an enterprise application (EA) is intended to run in a corporate setting, such as a business or government. EAs are mission-critical, complicated, scalable, distributed, and based on components.
- For instance, Salesforce is a platform for customer relationship management that links teams in sales, marketing, commerce, and customer service.
- Microsoft Office 365 is a productivity cloud that includes Word and Excel as well as additional programs for device management, security, and other things.
Learn more about the enterprise application with the help of the given link:
brainly.com/question/15700448
#SPJ4
