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3 years ago

Is the cost of equity calculated from the CAPM model, pre -tax or post-tax?

1 answer:

3 0

The existence of pre-tax cost of debt and post-tax cost of debt is due to the acknoledgement of the tax benefit from issuing debt.There is no tax benefit from paying divdends,so it makes no sense talking about pre-tax,post-tax cost of equity for a firm.When you think about cash flow to equity you can only assume that the taxes owed by the company have already been paid.Now, the taxation over the income of the shareholder is a whole different issue that does not take place in this discussion,since it is not taken in consideration either in cost of equity or cost of debt.

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Factors that can influence the success of a TQM program in a negative way include all of the following, EXCEPT _______. a. tasks

pshichka [43]

Answer:

a. tasks make high-skill demands on employees.

Explanation:

A Total Quality Management program can be defined as an approach used to improve flexibility, effectiveness and competitiveness within an organization.

The philosophy of this approach contains a system that encompasses the organization as an integrated and consistent system, with the participation of people grouped in multifunctional teams, focused on improving management, customer service, training and development that will lead to the continuous improvement of organizational processes. .

Therefore, among the alternatives presented, the one that least fits as a factor that can negatively influence the success of a TQM program is that the tasks demand a lot from the employees, because one of the focus of this approach is the development of skills and abilities of employees in order to generate continuous improvement also of the company's human capital, essential to contribute to the objectives that will generate total quality.

7 0

3 years ago

Marketing research indicates that almost 70 percent of all women drivers who have driven a Volkswagen Cabrio prefer it to any ot

hoa [83]

Answer:

Demographic

Explanation:

A market segment is a portion of a large market in which the individuals, groups or organizations share one or more characteristics that cause them to have relatively similar products needs.

A market segment consist of a group of customers that share a similar set of needs and wants.

Are four categories of segmentation:

-Geographic

-Psychographic

-Behavioral

-Demographic. The process of dividing a market through variables such as age, gender, education level, family size, occupation, income, and more. This is one of the most used strategies amongst marketers.

7 0

3 years ago

A 180-day $3 million CD has a 4.25 percent annual rate quote. If you buy the CD, how much will you collect in 180 days?

Katarina [22]

Answer:

$3,063,750

Explanation:

A 180 day $3,000,000 CD

Annual rate = 4.25%

Collection in 180 days = ?

$3,000,000 * 4.25% * 180/360

= $3,000,000 * 0.02125

= $63,750

Total amount to collect after 180 days = $3,000,000 + $63,750

Total amount to collect after 180 days = $3,063,750

8 0

3 years ago

What is the difference in accounting treatment of unrealized gains and losses across these three categories of investments

hammer [34]

Answer:

Unrealized gains and losses treatment:

Available for sale - recorded in OCI

Held till maturity - not recognized in financial statements until maturity

Held for Trading - Fair value through profit and loss

Explanation:

There are three categories of financial instruments. Available for Sale AFS, Held for trading HFT and Held till maturity HTM. Financial instruments are classified in these categories and then treatments is according to their classification. IAS 39 and IFRS 9 have provided complete guidelines for the treatment of the financial securities.

6 0

2 years ago

As new firms enter a competitive price-searcher market, profits of existing firms Group of answer choices rise and product diver

spin [16.1K]

Answer:

decline and product diversity in the market increases.

Explanation:

Competitive price searcher markets are those that have little barriers of entry for new firms.

Also the new forms are able to engage in transactions that are profitable. That is they easily take a market share.

In this scenario it will result in greater diversity of products as many firms can now produce goods that will be profitable in the market.

Also it will lead to a decrease in profit of existing firms as the new firm gets some of the market share

6 0

2 years ago