Answer:
It would be wise to use the CAPM capital cost.
Explanation:
It should use the Capital Assets Pricing Model.
The market rate is not sufficient. It is included in the CAPM calculation to asses the impact in the firm or industry beta and the free-risk rate.
The return for the dividend grows model is calculated with the current stock price and expected dividends. We can't know for sure if the stock wasn't undervalued or overrated at the moment of solving for return.
The CAPM model takes consideration of the current market interest rate, the own non-diversifiable risk of the firm and the fact of a free-risk interest rate. It is the better option
Answer:
The multiple choices are:
$5,589.04
$7,452.05
$4,890.41
$5,876.71
$6,410.96
Amount invested in K is $6,410.96
Explanation:
L+K=12,000
from the return perspective
0.0975=K/12000*0.0805+L/12000*0.117
K=12000-L
Substitute for K in the second equation
0.0975=(12000-L)/12000*0.0805+L/12000*0.117
0.0975=(966-0.0805L)/12000+0.117L/12000
0.0975=(966-0.0805L+0.117L)/12000
12000*0.0975=966+0.0365
L
1170
-966=0.0365L
204=0.0365L
L=204/0.0365
L=$ 5,589.04
K=$12,000-$ 5,589.04
K=$6,410.96
Answer:
C) lack of venture capital for innovative products.
Explanation:
Embryonic industries are such industries that are at the beginning stage in their life-cycle. More specifically, newly established ventures are called the embryonic industry or firm.
Options A, B, D, and E all are wrong because a new firm may not produce high qualified first products. It may not have the right complementary products, the production cost may be higher than expected, and finally, there are a few distribution points. Those lead to the slow growth of the embryonic industry.
Option C is the answer because venture capitalists like to invest in innovative products, so there should not be a lack of capital.
Answer:
Therefore, the Salary that Gander Corporation Pay Patrick during the Period without Negative Tax effects is $15,000.
Explanation:
Calculation of the Salary that Gander Corporation Pay Patrick during the Period:
December 1 through December 31 of the Current Year is One Month, They have to Pay 1/12 of the following year tax:
The salary for the deferral period (December 1 through December 31) must be at least proportionate to the employee’s salary received for the fiscal year.
Gander Corporation must pay the amount to Patrick during the Period December 1 through December 31, to permit the continued use of its fiscal year without negative tax effects is as follows,
$180,000 *1/12 = $15,000
I believe the answer is D!
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