The approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.
The bond-yield-plus-risk-premium approach does assumes that cost of equity is closely related to the firm's cost of debt.
- The premium approach does help to determine the value of an assetof a company's such as its traded equity.
However, the approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.
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<em>brainly.com/question/20354983</em>
Good habits:
Be organized- Have all materials needed in study area
Bad Habits:
Do not leave harder or more challenging question for the last- knock out easier assignments early when you are fresh
<u>Answer:</u>
<em>The level of compliance to nonprofit status regulations.</em>
<u>Explanation:</u>
<em>A non profit association (NGO) </em>is a non-benefit, native based gathering that capacities autonomously of government. Operational NGOs, which spotlight on improvement projects.
Although NGOs are constantly responsible monetarily to contributors, there are no lawful way to control their exercises abroad. (A few governments have compromised NGOs' assessment status when they have reprimanded the <em>international strategy of the benefactor government</em>.)
The given statement that most riders cannot tell the difference between low-risk behavior and high-risk behavior is FALSE.
<h3>What is
high-risk behavior.?</h3>
This refers to the type of behavior that a person engages in that could lead to severe consequences.
Hence, we can see that The given statement that most riders cannot tell the difference between low-risk behavior and high-risk behavior is FALSE and this is because they know when they put themselves in danger and when they are following protocols and guidelines about safety.
Read more about high-risk behavior here:
brainly.com/question/3711204
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