Answer and Explanation:
The formula to compute the required rate of return using the CAPM and constant growth model is as follows
Under CAPM
The Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
Constant growth model = Dividend ÷ Price + Growth rate
For Estee lauder,
Under CAPM = 4% + 0.74 × (10% - 4%)
= 4% + 0.74 × 6%
= 4% + 4.44%
= 8.44%
Under the Constant growth model
= $1.70 ÷ $50 + 16.50%
= 19.90%
For Kimco realty,
Under CAPM = 4% + 1.51 × (10% - 4%)
= 4% + 1.51 × 6%
= 4% + 9.06%
= 13.06%
Under the Constant growth model
= $1.68 ÷ $82 + 11%
= 13.05%
For Estee lauder,
Under CAPM = 4% + 1.02× (10% - 4%)
= 4% + 1.02 × 6%
= 4% + 6.12%
= 10.12%
Under the Constant growth model
= $0.60 ÷ $10 + 13%
= 19.00%
Answer:
Proxy Fight
Explanation:
Proxy fight refers to that scenario wherein a group of shareholders coming together so as to gain more shareholder proxies and thus gain majority of the votes.
In such cases, outsiders convince the existing shareholders of a corporation to vote against the management and thus collectively lead to it's replacement.
This represents one of the common means of corporate takeover.
Disgruntled shareholders may unite against a management decision or any sort of oppressive policies by such means, usurp the existing management and appoint their own preferred candidates as their replacement.
Answer:
C. $3,687.
Explanation:
amount of the adjusting entry for Uncollectibleminus−Accounts Expense
= $6,622 - $2,935
= $3,687
Therefore, The amount of the adjusting entry for Uncollectibleminus−Accounts Expense is $3,687.
They run the risk of diluting the firm's ownership. Hope I helped! :)
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