Both y and x is the correct answer
<span>part of a contractionary fiscal policy</span>
Answer:
The multiple choices are:
9.98 percent
10.04 percent
10.79 percent
10.37 percent
10.45 percent
The third option of 10.79% is correct
Explanation:
The cost of equity according to Miller and Modgiliani capital asset pricing model is given below:
Ke=Rf+beta*(Mrp-Rf)
Rf is the risk free rate which is the return on government security is 2.7%
beta is 1.14
Mrp is the market risk premium is 7.1% which is given in the formula as (Mrp-Rf)
Ke=2.7%+1.14*7.1%
Ke=2.7%+8.09%
Ke=10.79%
Hence the correct option out of the options given above is the third option
It is expected that any shareholder that invests in the shares of Southern Home Cooking would get return of 10.79%
Answer:
Historical costs is objectively and precisely measured, whereas market values can be difficult to estimate, and different analysts would come up with different
values.
Explanation:
In preparing a balance sheet it is customary for a company to value the assets and other items based on historical costs rather than market values.
For example if an asset is purchased at $20,000, this value will reflect in the balance sheet in subsequent years. Or future calculation will be based on this.
Let's say yearly depreciation is $1,000 then after on year the value will be $19,000, after two years $18,000 and so on.
This is more object than market value which varies at any one time.
Market value for an item will vary depending on location and the market.
Answer:
Delayering
Explanation:
Delayering is a business management technique that involves the process of dismantling layers in the hierarchy structure from the highest to the lowest level in order to increase efficiency, decrease wage bill and eliminate red tapes. The aim of delayering is targeted towards making the organization or company function at high efficiency rate. So in this case, when the CEO decided to make is company leaner and faster, he carried out the process of delayering.
