If an entrepreneur receives $275,000 from venture capitalists in exchange for stock, the investors receive equality in the business in return.
Entrepreneurs are people who launch new businesses, bearing the bulk of the risks and getting the majority of the rewards. Starting a business is a practice of entrepreneurship. The entrepreneur is frequently viewed as a creator of novel concepts, products, services, and businesses.
Any economy needs entrepreneurs because they have skills and zeal to anticipate needs and market workable new concepts. Entrepreneurship that is successful in assuming the risks associated with starting a business is rewarded with cash, fame, and potential for expansion. Failure in entrepreneurship results in losses and a weakened market position for those involved.
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Answer:
Risk-free rate (Rf) = 3%
Market return (Rm) = 11%
Beta (β) = 2.8
Ke = Rf +β(Rm - Rf)
Ke = 3 + 2.8(11 - 3)
Ke = 3 + 2.8(8)
Ke = 3 + 22.4
Ke = 25.4%
Explanation:
Cost of retained earnings is a function of risk-free rate plus beta multiplied by risk-premium. Risk premium is the difference between market return and risk-free rate,
Answer:
the simple money deposit or multiplier is 11.11
Explanation:
The computation of the simple money deposit or multiplier is as follows:
As we know that
Money Multiplier = 1 ÷ Reserve Ratio
Now if the required reserve ratio is 9%
So, the money multiplier is
= 1 ÷ 9%
= 1 ÷ 0.09
= 11.11
hence, the simple money deposit or multiplier is 11.11
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
C. Marginal cost will equal average total cost when marginal cost is at its lowest point.
Explanation:
Marginal cost is the cost of each extra unit sold or produced. Average total cost is the average cost of all the units which is sold or produced during the period.
If marginal cost equal to the average cost the marginal can not be its lowest point because the lowest point cost will decrease the average cost it will not be equal to average cost, otherwise at the units has same marginal cost.
Answer:
Skylar wants to pay off her college student loans within five years and Lukas wants to earn at least $40,000 per year.