Answer:
The cost of equity= 11.21%
Explanation:
VL=Value UnLevered + Debt*Tax Rate =EBIT*(1-Tax Rate)/Unlevered Cost of Capital +Tax *Debt
=1900*(1-34%)/10.3%+34%*4000
=13534.76
Value of equity = $13,534.76 – 4,000 =9434.757
Cost of Equity = Cost of Unlevered Equity +(Debt/Equity)*(1-Tax Rate)*(Cost of Unlevered Equity-Cost of Debt)
=10.30%+(4000/9434.757)*(1-34%)*(10.3%-7%)
=11.21%
Answer:
B. Biases
Explanation:
A bias occurs when an individual makes an ill informed decision. This usually results from previous experience or deeply held beliefs about a situation. The individual diverges from rational choice and are rather influenced by emotions and invested opinions.
When a person says capitalists focus more on money and do not care for their workers, this is a subjective statement that is not based on facts. In capitalism it is not all employers that focus on only making money. Employer-employee relations are important for efficient production. So this statement is made on the basis of the speaker's bias.
Answer:
Greenwashing
Explanation:
Greenwashing is the process of using marketing to promote the idea that a company is more socially responsible than it actually is. It is the process of passing a false impression or providing false information about how a company's products are more environmentally sound.
Greenwashing can also be called green sheen. It is used to deceive consumers into believing that a company's products are environmentally friendly by providing misleading information about the product.
Greenwashing is considered an unsubstantiated claim to deceive consumers into believing that a company's products are environmentally friendly.
