Traditionally, the formulas used to express a firm's cost of equity are the dividend capitalization model and the capital asset pricing model (CAPM).
Explanation:
Generally, two risk components determine a firm's cost of equity. The first is the systematic risk associated with the broader equity market. All firms are exposed to this risk, and it cannot be mitigated through diversification.
The second risk component is the unsystematic risk associated with the firm in question. This risk, often reflected as beta, a measure of the stock's volatility in relation to the volatility of the broader market, can be mitigated via diversification.
Answer:
True
Explanation:
The satisfaction of customer is the key need of survival for any business.
As the customer satisfaction will result into good branding, economic support and vital performance booster for the organisation.
Customer satisfaction ensures that the organization is socially and economically viable, and equally capable of running business with the perspective of growth.
Thus the above stated statement is
True
Answer:
First of all, there was no attendant in the parking lot when batman arrived, meaning that he did not hand the keys. Batman kept the leys to himself all the time, so there is no transfer of possession. Without a valid transfer of possession, bailment cannot exist. Whether Batman ate at the restaurant or spent time talking to Wonder Woman do not change the facts that the safety of his Batmobile was his responsibility only.
True, Is the correct answer.
A simple Keynesian model follows four principles:
<span>1. Accumulated expenditures, income, and output are the same.
2. All input of spending into the economy must equal all withdrawals
3. Investment is an input.
4. Saving is a withdrawal</span>
According to Keynesian analysis, of households intend to save more, they will become poorer. The theory about Keynesian analysis applies to economic where an increase in savings decreases the circular flow of income. S when the households save more, they are reducing the stream of income for other households and therefor diminishes the overall economic activity.