Answer:
Cost of equity = 19.1
%
Explanation:
Cost of equity = required rate of return + flotation cost
The Capital assets pricing model would be used to determined the required rate of return
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c </em>
Using the CAPM , the required rate of return is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) - required return
β- Beta
Rm- Return on market
Rf- Risk-free rate
DATA
E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%
E(r) = 3% + 1.1× (14% - 3%) = 15.1
%
Cost of equity = required rate of return + flotation cost
= 15.1
% + 4% = 19.1
%
Cost of equity = 19.1
%
Answer:
B. 4 years
Explanation:
As per the certain life income period, the guaranteed payments for the recipient lifetime or the specified time duration whichever is more.
Now if the recipient dies before the certain period ended, so the payments would be continued to the other beneficiary unless there is an end for the certain period
So, in the given situation, the payments would be received for
= 10 years - 6 years
= 4 years
Hence, the correct option is B. 4 years
Answer: $1600
Explanation:
From the information given, it can be noted that while Ryan is vested, on the other hand, Todd isn't vested.
Therefore, since the vacation is for two weeks, the amount of vacation expense and liability should be reported will be for Ryan alone and this will be:
= $800 × 2
= $1600
In this case, service has already been rendered ans there's accumulated rights, therefore a vacation expense and liability of $1600 should be reported.
Answer: (D) Accept the risk
Explanation:
According to the given question, the one of the best solution is to accept the risk as the 2 given risks in the project cannot be removed or also outsourced from the given project scope.
Accepting the risk is one of the risk retention process in which we sometimes cannot avoid the given risk in the risk management and it is commonly found in the various types of investment process and also in the business.
On the basis of the given scenario, we could not eliminate the two risks in the project so the best solution is to using the risk acknowledgement due to some limitations. Therefore, Option (D) is correct answer.
Answer:
The expertise acquired by the employees in the company.
