Answer:
15.8%.
Explanation:
Calculation for XYZ's cost of equity using the CAPM
Using this formula
Cost of equity = Rrf + βi[E(Rm) - Rrf]
Let plug in the formula
Cost of equity= 6% + 1.06×[15.25% - 6%]
Cost of equity= 6% + 1.06×9.25%
Cost of equity= 15.8%
Therefore the Cost of equity will be 15.8%
Answer:
The major faults of measurement are:
- Coverage
- Measurement
- Sampling and
- Response
Explanation:
During business research, the data collected during the survey can become very unusable due to errors arising from the factors listed above.
The problem of coverage arises when for instance an electronic survey is used to collect data from a sample population where 69% for instance, do not have access to a mobile phone or a computer.
Measurement problems during a survey speak to the ability to properly design a questionnaire in such a way that it elicits the right kinds of responses. This means asking the right questions so that the responses or answers are accurate. The irony of measurement error is that one's survey is useless if they got the questionnaire design wrong, regardless of whether or not the response rate was very high.
After administering a survey and there is little or no response, one is said to have an error in response rate. A low response rate increases the error margin of the survey as well as it's unreliability.
Sampling errors are said to occur when the sample size is too small or statistically homogenous such that it does not accurately represent the entire population. When this happens it is termed <em>sample frame error.</em>
Another error can occur when the researcher includes the wrong population or excludes the right population. This is called <em>Error in Population Specification. </em>
Cheers
<span>The Structural Approach to kinesics studies all movement and sees all behaviors as important and communicative, and studies the KINE or the smallest unit of movement or motion. The External Variable approach however must be interpreted for it to be considered communication, and to be studied. Behaviors must also be full and completed, and it studies the KINEMORPH or the combination of lines, and specific whole movements. And it's also distinguished by idiosyncratic and shared info (personal behaviors/tendencies and behaviors with meaning for the particular group).</span>
Answer:
b) The company will incur a loss
Explanation:
The market rate at the time of issue = 9%, while coupon rate = 8%, it says bonds provide lesser return when compared to the market rate.
At end of year 2 market rate drops to 6% which is lower than the Bond's coupon rate. Which means the bond's providing high return when compared to the market. So, company to retire the bonds need to pay more than the par value.
As company should retire these bonds more than par value, the company incur a loss.
Option 'B is correct
The company incur a loss
