Answer:
1.25
Explanation:
The Capital Asset Pricing model will be used
ße = ßa × [Ve + Vd(1 – T)] / Ve
Here
ße = 1.08
Ve = Value of equity $50 million
Vd = Value of debt $10 million
T is tax rate which is 21%.
By putting the values, we have:
ße = 1.08 × [50 + 10(1 – 21%)] / 50
ße = 1.25
The beta equity of Chocolate Cookie is 1.25 which shows higher risk than average risk.
<span>If she starts work now she will earn $40,000 in two years. Borrowing 5000 dollars in year one times a flat 5% interest rate equals a total of 5250 which she would have to repay. Not caclualting for taxes, but based on her gross income, that would leave her with 42, 250 dollars and she would end up ahead by the end of two years. So yes at 4 percent it would also make sense. At 6 percent her payback amount would be 5300 dolloars and she would still end up ahead. But in real life there are taxes and compound interest.</span>
Answer:
I think one is borrowers who don't pay back
Then I think that interest rates falling is also one
These are the only ones I can think of. hope they help
Answer:
rights offer.
Explanation:
.
rights offer in equity can be regarded as invitation given to shareholders that are still existing in the firm so that they can purchase new shares, which is additional shares in the firm at a specific price which is usually at a particular time usually like 16 to 30 days. It should be noted that An equity issue sold to the firm's existing stockholders is called a rights offer
Answer:
engage in management openness by encouraging members to voice their opinion.
Explanation:
An important characteristic of management is approachability and openness of the manager to ideas of employees. This gives the manager an idea of the actual state of the workplace facilitating effective resolution of issues as they arise.
When employees know they can freely express themselves without being reprimanded, they better express themselves about challenges encountered.
Also opportunities and methods of doing things better is communicated to the manager