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lbvjy [14]
3 years ago
5

Teall Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the f

ollowing data: D1 = $1.45; P0 = $22.50; and g = 6.50% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?
Business
1 answer:
katrin [286]3 years ago
5 0

Answer:

Cost of Equity 12.9%

Explanation:

Cost of Equity is the rate of return required by the equity holders of the company. It is rate which is associated with the equity of the company. This can be calculated by using Discounted cash flow method of valuation of equity because this rate is used to discount the expected future dividend of related to equity.

Value of Equity = Dividend paid / ( rate of return - growth rate )

P0 = D1 / ( r - g )

$22.5 = $1.45 / ( r - 6.5%)

r - 6.5% = $1.45 / $22.5

r - 0.065 = 0.064

r = 0.064 + 0.065

r = 12.9%

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Answer:

The correct answer is letter "B": Risk profile; Enterprise Risk Management.

Explanation:

One of the many good practices for Information Governance (IG) relies on developing a risk profile in Enterprise Risk Management to safeguard data. The risk profile should include the likelihood of threats, its impact and how the risk could be mitigated after it takes place. Risks profiles can be created in multiple ways in multiple frequencies.

7 0
3 years ago
explain the law of increasing opportunity costs using the example of economic growth and a production possibilities curve.
Ivahew [28]

The law of increasing opportunity cost tells us that, as the economy moves along the production possibilities curve in the direction of more of one good, its opportunity cost will increase.

<h3>What is economy ?</h3>

An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources.

One's culture, values, education, technological advancement, history, social organization, political structure, legal system, and natural resources are all major determinants of an economy's processes. These elements determine the parameters and conditions under which an economy operates in addition to providing background and content. In other words, the economic realm is a social domain made up of connected human behaviors and exchanges that cannot exist independently.

Individuals, companies, organizations, or governments all qualify as economic actors.

To learn more about economy from the given link:

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3 0
1 year ago
One major advantage of limited liability is that it:________.
Finger [1]

Answer: c. shields the personal assets of owners from liability claims.

Explanation:

An advantage of limited liability is that it shields the personal assets of owners from liability claims.

For a limited liability company, it should be noted that the liabilities of the members in the company for the debts that are incurred are limited only to the investment of the members. Personal assets are not affected if the company first into debt.

3 0
2 years ago
The Incident Action Plan is prepared by General Staff from which section? A. Planning B. Operations C. Logistics D. Finance/Admi
SOVA2 [1]

Answer:

The correct answer is A

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IAP stands for Incident Action Plan, which is defined as the organized course of the events that addresses or notices all the phases or stages of the incident control in the specified time.

It is required to completed or finished in the timer period or time frame, which allows the least amount of the action that is negative to continue.

So, this plan is made or prepared through the General Staff of the Planning section.

5 0
3 years ago
Read 2 more answers
Scot and Vidia, married taxpayers, earn $90,400 in taxable income and $5,000 in interest from an investment in City of Tampa bon
EastWind [94]

Answer:

a) Since Scot and Vidia's ordinary income = $90,400 + $81,000 = $171,400, their marginal tax rate will be 24%, and they will owe $29,211 + [($171,400 - $171,500) x 24%] = $29,295 in taxes

They will also have to pay 15% of $5,000 (capital gains) = $750

b) Since Scot and Vidia's ordinary income = $90,400 - $81,000 = $9,400, their marginal tax rate will be 10%, and they will owe $9,400 in taxes

They will also have to pay 15% of $5,000 (capital gains) = $750

4 0
3 years ago
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