Answer:
The solution as per the given problem is provided below throughout the explanation portion below.
Explanation:
The given values are:
Debt issued,
= 120
Pretax earnings,
= 80
Tax,
= 35%
All equity firm,
= $320
Number of common stock,
= 50
(a)
Balance sheet before the debt issue's announcement will be:
<u>Assets </u><u> 320</u>
<u>Debt </u><u> 0</u>
<u>Equity </u><u> 320</u>
then,
The total will be "320".
(b)
The per share price will be:
= 
= 
= 
or,
After tax, the net income will be:
= 
= 
= 
= 
(c)
The return on equity will be:
= 
= 
= 
or,
= 
(%)
Answer:
The correct answer is A. true.
Explanation:
The cost of capital is a little less unique than the cost of debt. Equity is any financing raised through the sale of shares. Different people have different ways of measuring equity.
Some people prefer to simply use the CAPM or some other form of APT, estimating the cost of capital as an amount equivalent to the risk premium on the returns paid by the company to its investors. In this way, the returns generated in excess of the risk-free rate are considered the cost of equity.
This calculation is easy to use, but also takes into account the fluctuations in the value of the shares in the secondary market, which really has no cost to the company. Some people argue their benefits.
The difference between the standard cost of a product and its actual cost is called a cost variance. Therefore the statement is true.
<h3>What is the objective of variance?</h3>
Changing across all of the pieces of information in a data set, variance is a measurement of distribution. It enables us to estimate how far away a set of factors are from each other.
To describe the variation or difference between the standard cost of a product and its actual cost the use of cost variance is done. It is utilized to estimate the financial performance of any project.
Therefore, the statement is True.
Learn more about Variance, here:
brainly.com/question/16269880
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Answer:
the 5Cs of opportunity identication:
1. Circumstance
2. Context
3. Constraints
4. Compensating behaviors
5. Criteria
Explanation:
According to Scot Anthony, to identify opportunities it's important to understand the 5Cs of opportunity identication.
1. Circumstance: Know the specific problems which your customers care about and how they get solutions to it.
2. Context: Know what the customer did in the past and work around it to present something realistic.
3. Constraints: Get to understand customers' barriers and constraint.
4. Compensating behaviors: Understand the compensations that engage your customers.
5. Criteria: In order to know a good solution, it's important to understand the criteria that matter to your customers.
Answer:
c. The maturity risk premium is assumed to be zero.
Explanation:
In the case when the term structure of the rate of interest would be measured via the pure expectations theory so here the maturity risk premium would be zero as under this theory it is assumed that the risk premium i.e. of the long term would be equivalent to the zero
Therefore the option c is correct
And, the rest of the options seems wrong
