Answer:
9.6845%
Explanation:
Market risk premium = Market return - Risk free rate
7.3 = 11.2 - Risk free rate
Risk free rate = 3.9%
(1) Use CAPM:
Cost of equity = Risk free rate + Beta × Market risk premium
= 3.9% + 1.06(7.3)
= 11.638%
(2) Use DDM
:
Stock price = [Latest dividend × (1 + dividend growth rate)] ÷ (Cost of equity-dividend growth rate)
$17 = [0.92 (1 + 0.022)] ÷ (Cost of equity - 0.022)
Cost of equity = 7.731%
Cost of equity = average value from using DDM and CAPM
Cost of equity = 0.5 (7.731 + 11.638)
= 9.6845%
Answer: d) $8750
Explanation:
The Cash buffer is also the margin of the total value of the stock.
= Initial margin * Investment value
= 70% * (125 * 100)
= 70% * 12,500
= $8,750
Answer:
To mitigate damages
Explanation:
When a a tenant breaches the terms of a real estate agreement, the landlord must come in to get another tenant to occupy the space.
He is avoiding a situation where the property is to be left unoccupied for a period of time.
Mitigating damages is a way of reducing further loss when one party breaches a contract.
In the given scenario if a tenant moves out of leased premises before the term of the lease expires, the landlord is required to make a reasonable attempt to lease the property to another party.
Answer:
The U.S. Congress authorized CTSOs.
Explanation:
Answer:
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