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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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Which statement is true of Critical Path Method (CPM)?
Masja [62]

Answer:

d. It determines the critical path for the completion of a series of interrelated activities.

Explanation:

The Critical Path method is a method to lay out the different steps or interrelated activities of a project, in a graphical manner, that shows the interrelations, the time each activity takes to complete, the different alternatives or paths for project completion, and the total completion time for the project.

It also shows the amount of time a delay in one of the activities would delay the project as a whole.

6 0
3 years ago
This problem has been solved! See the answer On January 1, Helmut pays $2,000 for a 10% capital, profits, and loss interest in a
Alinara [238K]

Answer:

Helmut's basis at year-end is $3,900.

Explanation:

Beginning Basis  = $2,000

Add: January 1 Liabilities at the rate of 10% = $20,000 × 10% = $2,000

Add: Increase in liabilities by the rate of 10% = $5,000 × 10% = $500

Less: Loss incurred at the rate of  10%  = ($6,000 × 10%) = $600

Basis at the end of the year = $2,000 + $2,000 + $500 - $600

Basis at the end of the year = $3,900.

4 0
3 years ago
Which steps should marketers follow when using the objective-and-task method to determine a budget?
levacccp [35]

The steps that marketers should follow are identify cost of necessary communications, compare budget to that of competitors and establish set of communication objectives.

<h3>What is communication?</h3>

The traditional definition of communication is the transfer of information. The phrase could be used to describe the transmission's message or the field of study that looks into it. There are several disagreements over the precise definition of it. This justification suggests that one definition of communication might be the process of mutual understanding being established between things or groups through the use of signs, symbols, and semiotic customs. It's important to distinguish between non-verbal communication, which can include things like gestures and facial expressions, and verbal communication, which happens through the use of words. Models of communication provide a detailed description of the numerous stages and parties involved in communication. Numerous academic fields focus on communication. Information theory examines how information is generally quantified, stored, and transmitted.

To learn more about communication, visit:

brainly.com/question/29559096

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8 0
1 year ago
Given the following information, calculate the loan-to-value ratio of this commercial loan: estimated net operating income in th
tatyana61 [14]

Answer:

b. 0.77

Explanation:

The formula to compute the loan to value ratio is shown below:

= Loan amount ÷ Purchase price

= $1,000,000 ÷ $1,300,000

= 0.77

It shows a relationship between the loan amount and the purchase price so that the accurate ratio can come

All other information that is given is not relevant as it is related to the debt yield ratio. Hence, ignored it

7 0
3 years ago
Often, through​ government-supported programs, students may obtain​ "bargain" interest rates such as​ 6% or​ 8% to attend colleg
ehidna [41]

Answer:

amount of interest due after 6 month is $1344

Explanation:

given data

borrowed P =  ​$42,000

interest rate = 6.4​% = 0.064

time period = 6 month  = 0.5 year

solution

we get here interest amount on 6 month that is express as

interest = principal ×  rate × time   ..........1

put her value and we get

interest  = 42,000 × 0.064  × 0.5

interest  = $1344

so amount of interest due after 6 month is $1344

5 0
3 years ago
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