Answer:
The cost of equity using the DCF method: 4.39%.
The cost of equity using the SML method: 15.01%.
Explanation:
a. The cost of equity using the DCF method:
We have: Current stock price = Next year dividend payment / ( Cost of equity - Growth rate) <=> Cost of equity = Next year dividend payment/Current stock price + Growth rate = 0.3 x 1.04/80 + 4% = 4.39%.
b. The cost of equity using the SML method:
Cost of equity = Risk free rate + beta x ( Market return - risk free rate); in which Risk free rate is rate on T-bill.
=> Cost of equity = 6.3% + 1.3 x ( 13% -6.3%) = 15.01%.
Answer: Option C) When supply equals demand.
The most common supply curve decreases with price. The most common demand curve increases with price. The point at which supply and demand curves intercept each other is the equilibrium point. At that point (equilibrium), there are consumers who are paying less than what they are willing to pay (generating a consumer surplus) and there are producers who are selling at a price that is higher than what they are willing to receive (generating a producer surplus), then both consumer and producers benefit.
Answer: Low risk taking culture
Explanation:
Organisational culture includes the behaviour, beliefs, value and principles in which an organisation operates on. It's entails the way business are done, decisions are made etc.
Low risk taking is an organisation culture aimed at minimising risks. Recommendations and Decisions are based on facts and genuine data not on abstract and unreal thoughts with decisions fully documented.
The credit balance in cash short and over at the end of an accounting period is reported as an expense on the income statement.
Income is the consumption and savings opportunity that a business captures within a specific time frame, usually expressed in money. Income is difficult to define conceptually and definitions vary by region.
The definition of income is the amount of money received by an individual, group or business during a specified period. An example income is an annual salary of $70,000.
Income is money received by an individual or business in return for providing work, producing goods or services, or investing capital. While individuals usually earn their income through wages or salaries, businesses generate income from the sale of goods or services that exceed their production costs.
Learn more about income here:brainly.com/question/25745683
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Answer:
Looking through a suspect's garbage for possible evidence.
Explanation:
When an investigation is being carried out, looking through a suspect's trash is a good strategy.
People tend to discard relevant documents in am investigation through their trash, and looking through their garbage can uncover items that will give insights on cases.
For example if an individual commits a fraud in the process of concealment he may have torn up a document, and put it in the trash for disposal. People feel nobody goes through trash and that it is a good way of disposing evidence.
