Answer:
Under CAPM:
Re = Rf + Beta(Rm - Rf)
Rf = 5%
Rm - Rf = 6%
Beta = 1.25
Re = 5% + (1.25 x 6%) = 12.5%
Under dividend discount model:
Re = (Div₁ / P₀) + g
Div₁ = $1.20
P₀ = $35
g = 8%
Re = ($1.20 / $35) + 8% = 11.43%
Under bond yield plus risk premium approach:
Re = Pre-tax cost of debt + risk premium over its own debt
Pre-tax cost of debt = 7%
risk premium over its own debt = 4%
Re = 7% + 4% = 11%
The highest cost of equity results from the CAPM model and it is 12.5% while the lowest results from using the bond yield plus risk approach (11%), the difference is 1.5% between them.
Answer:
Name brand. hope this helps
Answer:
The correct answer to the following question is D, which is "Interdependent"
Explanation:
Because many of the people work in a team but that team does not a team or they are not a team member, if they work separately in a chamber, and meet your team folks only in the meeting, then u are not a real team. If we are not interdependent to our team members then we not really a team, we called a team or a team member only at that time, when we work interdependently.
so that's why it is important to work in a team and also work interdependently
The correct answer is B) False