Answer:
Price=D(1+g)/r-g
Dividend= $10
g=3%
risk premium=4%
Price=$412
Solution:
In order to find the r=cost of equity we undertake the following steps
Price=D(1+g)/r-g
412=10(1+0.03)/r-0.03
r-0.03=10.3/412
r-0.03=0.025
r=0.025+0.03
r=0.055 or 5.5%
risk premium=(market risk -risk free rate)
0.04=(0.055 - risk free rate)
risk free rate =0.015 or 1.5%
as we double the risk premium rate from 4% to 8%
then
market risk will be
risk premium= market risk - risk free rate (unchanged)
8%=market risk - 1.5%
market risk = 9.5%
Using dividend discount model
Price=D(1+g)/r-g
price =10(1+0.03)/0.095-0.03
Price= $158
Answer:
Explanation:
The journal entries are shown below:
Account receivable A/c - Beasley Co Dr $19,110
To Sales A/c $19,110
(Being sales is made on credit)
The net sales is computed below:
= Sales - discount in sales
= $19,500 - $19,500 × 2%
= $19,500 - $390
= $19,110
Cost of goods sold A/c Dr $10,100
To inventory A/c $10,100
(Being inventory is recorded at cost)
Answer:
c. provide full disclosure of information and prevent insider trading and other fraudulent practices.
Explanation:
The Security Act of 1933 was a step initiated towards the regulation of the stock market. The power was shifted from the hands of State legislation and granted to the federal government to regulate the stock market. It was also designed in a way that it provided the set of rules that helped in preventing any act of fraudulent. President Franklin D. Roosevelt signed and passed the act.
Answer: notice of comment final
Explanation:
Many rules must be adopted using the notice-and-comment rulemaking procedure, which includes giving notice of the proposed rulemaking, allowing for a period of time for comment from the public, and the issuance of the final rule.
the answer is <u><em>C</em></u>
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