Answer:
a. 5.40%
Explanation:
First, I will calculate the new cost of equity for both stock X and Y:
Required rate of return = risk free rate + (beta x market premium)
Re stock X = 8% + (1.6 x 6%) = 8% + 9.6% = 17.6%
Re stock Y = 8% + (0.7 x 6%) = 8% + 4.2% = 12.2%
The difference between the required rate of return = 17.6% - 12.2% = 5.4%
Answer:
The correct answer is the option D: Both the foreseeable doctrine and the restatement doctrine.
Explanation:
On the one hand, the <em>foreseeable doctrine</em> dictates that there is a limit in the liability of party for those acts that he has done and that carry a risk of foreseeable harm. Therefore that this point of view establishes that a reasonable person would be able to understand and so to know when a certain action would bring certain damages to another party.
On the oher hand, the <em>restatement doctrine</em> establishes that there are a set of treatises on legal subjects that primarily are looking for to inform judges and lawyers about general principles of common law. And therefore that those treatises will help both the judge and the lawyers at the time of the trial when the person has to go to court.
Answer: Valuation
Explanation:
The assertion that assertion relates to the statement that Assets, liabilities, and equity interests are included in the financial statements at appropriate amounts is the valuation assertion.
According to the assertion of accuracy and valuation, it simply means that all the figures that are presented in a financial statement are known to be accurate and are based on proper valuation of the assets, the liabilities and the equity balances
Answer:
-9.92%
Explanation:
P₀ = Div₁ / (Re - g)
- Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
- Re = cost of equity = ?
- P₀ = current stock price = $62.91
- g = dividend's growth rate = -11.5%
Re = (Div₁ / P₀) + g
Re = ($0.9912 / $62.91) - 11.5%
Re = 1.58% - 11.5% = -9.92%
Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.
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-do the difficult or most important stuff first, then leave the less complicated stuff in the end
-take breaks-sitting 24/7 in ur office desk can be detrimental to ur health-do things u enjoy every one hour or so, such as sipping a black coffee with a light snack or having a quick laugh with ur colleauges, or perhaps u can challenge urself with a game of scrabble. it will change ur life of work struggles and make u mentally and physically happy!!
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-i hope i helped:)
