Exactly, when someone buys an insurance policy that person is making sure that whatever happens to him/her, there is the policy to compensate for something that will be lost. He/she is transferring the risk away and pass it on to the insurance company for safekeeping.
Cost of Equity as per CAPM = rf +beta*(rm-rf)
rf = risk free rate = 2.5%
beta =1.12
rm-rf = market risk premium = 6.8%
Cost of equity = 2.5+ 1.12*6.8 = 10.116% = 10.12%
Answer:
a. False
Explanation:
A "primary transaction" refers to the selling of <em>new stocks and bonds</em> for the first time towards the public. A great example of this is the "Initial Public Offering" <em>(IPO)</em> which allows "public share issuance."
On the other hand, a "secondary transaction" refers to the<em> trading of investors among themselves.</em> There is no involvement of the issuing companies here. So, this means that if an investor uses the services of a broker to buy and sell stocks that are currently being traded in the stock market,<u> the transaction</u><u> doesn't directly involve the issuing compan</u><u>y.</u> This kind of transaction is then called "secondary."
So, this explains the answer.
Answer:
The answer is: False
Explanation:
Whenever a company wants to go international it has a lot work to do before creating an international division. Several things must be done before, mostly research, for example:
- Research if your product is know overseas, is there any possible market for it, are there any restraints for your products in those new markets.
- Any legal constraint or logistical problem you have to consider.
- Any local competition you have to worry about.
- Does your product fit in a new culture.
- And very many etceteras.
That should all be done before considering spending money on creating an international division.
Probably when the internet didn´t exist, communications were scarce, no Tv existed, people in one country didn´t know anything about other cultures, etc., a comp nay would have first created an international division to scout foreign markets but right now it doesn´t make sense.
Answer:
Days sales in payable = 68.74 days(Approx)
Explanation:
Given:
Cost of goods sold = $44,621
Accounts payable = $8,403
Days sales in payable = ?
Computation of Days sales in payable :
Days sales in payable = ($8,403 / $44,621) × 365 days
Days sales in payable = 0.188319401 × 365 days
Days sales in payable = 68.7365814
Days sales in payable = 68.74 days(Approx)
