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densk [106]
3 years ago
15

The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The cost

of equity using the CAPM approach The current risk-free rate of return ( rRFrRF ) is 3.86% while the market risk premium is 5.75%. The Wilson Company has a beta of 0.92. Using the capital asset pricing model (CAPM) approach, Wilson’s cost of equity is:
Business
1 answer:
Licemer1 [7]3 years ago
3 0

Answer:

Explanation: Cost of equity can be defined as the return that the investors demand for bearing the risk of ownership in company's equity shares. It can be computed by using CAPM model which is represented as follows :-

cost of equity = risk free rate + beta *(market risk premium)

K_e=\:R_f\:+\beta \left ( Er_m \right )

K_e=\:3.86\%\:+\b0.92 \left ( 5.75\% \right )

         = 9.15%

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Giada is at an extracurricular activity fair for her high school and is trying to decide which clubs to join. Her hobbies includ
Lesechka [4]

Answer:

Giada should join FEA.

Explanation:

5 0
2 years ago
A 4-year project has an annual operating cash flow of $53,500. At the beginning of the project, $4,450 in net working capital wa
Angelina_Jolie [31]

Answer:

E. $63,401

Explanation:

gain on disposal = salvage value of plant - book value on date of sale

                            = $5,790 - $4,820

                            = $970

tax on disposal = $970*35%

                          = $339.50

after tax salvage value = $5,790 - $339.50

                                       = $5,450.50

total cash flow in 4 years

= annual operating cash flow + net working capital + after tax salvage value

= $53,500 + $4,450 + $5,450.50

= $63,401

Therefore, The Year 4 cash flow is $63,401.

3 0
3 years ago
Use your knowledge about the advantages of international trade to complete each sentence. International tradeeconomic growth . I
Hoochie [10]

International trade has been significant for the globalization of free trade relations.

Explanation:

International trade has been responsible for the global economic growth in the 20th and 21st century .

International trade is responsible for the specialization of goods for one country which is at the most advantage for making that particular product while being able to import the others they may need

International trade makes it so that the types of goods and services available around the world can reach any other part of the world.

3 0
3 years ago
Read 2 more answers
On Monday, the regular price of a widget was discounted by 25 percent. On Tuesday, the reduced price was discounted by 50 percen
Anvisha [2.4K]

Answer:

<u>The Regular Price was $112.50</u>

Explanation:

On Monday- Discounted -25% from original price

On Tuesday- Discounted -50% from the price from "Monday"

I am going to multiply

60 x 0.25 = $15

$15 was discounted from the original price so you should add it to 60

the price is 75 now. Next

We need to multiply 75 x 0.50 = $ 37.5

We do the same and add $37.5 to $75

Which equals = $112.5

<u>The Regular Price was $112.50</u>

Ask Me any questions in the comments so i can clarify myself.

Cheers!

3 0
3 years ago
Price is the _____________ a consumer is willing to make to acquire a specific product or service.
vfiekz [6]

Answer:

Overall sacrifice

Explanation:

Price is associated with the amount of money that a consumer have to pay to purchase a articular product. Overall sacrifice is that amount of money which is sacrificed by the consumer to acquire a particular product or service. Price of the product is set by the seller in the market and it is totally depends upon the willingness of the consumer to buy the product at the prevailing prices or not.

3 0
3 years ago
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