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Slav-nsk [51]
3 years ago
10

The up and coming corporation's common stock has a beta of 1.05. if the risk-free rate is 5.3 percent and the expected return on

the market is 12 percent, up and coming's cost of equity is percent. (do not include the percent sign (%). round your answer to 2 decimal places. (e.g., 32.16))
Business
1 answer:
Ugo [173]3 years ago
6 0

Cost of equity is calculated as -

Cost of equity = Risk free return + Beta * (Market risk - Risk free return)

Given,

Risk free return = 5.3 %

Market risk = 12 %

Beta = 1.05

Cost of equity = 5.3 % + (1.05*(12-5.3%))

Cost of equity = 12.335 % or 12.24 %

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Sen Corporation warrants carry the right to buy 6 shares of Sen common stock at $10.00 per share. The common stock has a current
Advocard [28]

Answer: $25.50

Explanation:

Intrinsic Value of warrant = Number of shares buyable * (Market price - Warrant price)

= 6 * (14.25 - 10)

= $25.50

8 0
3 years ago
A travel agency discovers that it has been charged for payments to a print shop drawn on checks written by an unknown third part
trasher [3.6K]

Answer:

Forgery or Alteration Coverage Form.

Explanation:

The travel agency loss would be covered under Forgery or Alteration coverage form.

Under Commercial Crime insuring agreement, It insures an individual or business against the forgery or alteration of financial instruments e.g promissory notes, drafts, and checks with respect to payment of a sum of money that was made or drawn by the insured or anyone acting on his/her behalf such as next of kin.

8 0
3 years ago
Read 2 more answers
Christian spends a significant amount of his time at work performing tasks such as distributing work among his subordinates and
Margaret [11]

Answer:

Distributing work among his subordinates and arranging their shifts and tasks to be performed is related most closely to controlling and analyzing performance against goals managerial function.

Explanation:

A manager is who is in charge of departments in companies, guiding the people, making decisions planning for better.

The are four functions of management in industries include distributing work among subordinates and arranging their shifts and tasks to be performed, controlling a workflow, analyzing performance against goals and leading to internal goals achievement.

6 0
3 years ago
When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by?
sergij07 [2.7K]

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by <u>selling common stock</u>. Long-term funding can be defined as any financial tool with maturity going beyond one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.

<h3>What is a retained earnings?</h3>

Retained earnings are the total of profit an establishment has left over after paying all its direct costs, indirect costs, income taxes and its dividends to shareholders.

Therefore, the correct answer is as given above

learn more about retained earnings: brainly.com/question/25631040

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8 0
2 years ago
After writing off a $300 account balance for Ballman Company using the allowance method, Ballman Company sends in the payment. T
makvit [3.9K]

Answer:

The journal entry is shown below:

Explanation:

The journal entry for writing off the amount through using the Allowance Method is as:

Allowance for Bad debts A/c.............................Dr   $300

             Accounts Receivable A/c...........................Cr   $300

While writing off the amount of bad debt, the allowance for bad debts account is debited against the accounts receivable account.

The journal entry which is to be recorded for reversing the write off through using the Allowance Method:

Accounts Receivable A/c...........................Dr   $300

     Allowance for Bad debts A/c......................Cr   $300

So, for reversing the original entry would be reversed, which means the accounts receivable account is debited as the payment is received and the bad debts got decrease, which means the allowance for Bad debts is credited.

5 0
2 years ago
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