Answer:
The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization
Answer:
62.5% and 37.5%.
Explanation:
The computation of percentage is shown below:-
Let us assume the X be the weight in Risky Asset
And, 1 - X is the weight in Risk Free asset.
SO,
Particulars Rate Weight Weighted rate
Stock 11.00% X 0.11X
Risk free assets 3% 1 - X 0.03 - 0.03X
So, the equation will be
0.03 + 0.08 X = 0.08
0.08 X = 0.08 - 0.03
0.08 X = 0.05
X = 0.05 ÷ 0.08
= 0.625
Answer: The correct answer is D) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them.
Explanation: A principal in the context of a business is the owner of the business which in most cases are the shareholders. While the agents are those employed or hired to engage in the day to day activities of the business.
The principal most often aims to maximise shareholders wealth. Principal- agent problem may arise where the agent s of the business put their interests as priority as against the interests of the principal. Such interests of the agents may be to earn bonuses even if it would jeopardize the growth of the organisation.This is an ineffective way of running an organization.
Answer: 35.29%
Explanation:
Municipal Bonds are attractive in that they give the tax benefit of being tax exempt whereas a corporate bond is liable for taxation. The tax rate that will therefore make an investor indifferent between the two bonds is the one that will equate the Corporate bond's yield net of tax to the yield on the Municipal bond.
5.5% = 8.5% * ( 1 - x)
5.5% = 8.5% - 0.085x
0.085x = 8.5% - 5.5%
0.085x = 3%
x = 35.29%
Option C
The cost of preferred stock is equal to the annual dividend divided by the present value of all the future dividend payments.
<u>Explanation:</u>
The preferred stock gives a solidified dividend each period. But dividends to preferred stocks are divided using after-tax income, as a sequence, these dividend payments do not produce any tax assumptions. The estimate of preferred stock is based on the reduced cash flow strategy.
The cost of preferred stock is the allowance of return demanded by owners of a company's preferred stock. It is determined by sorting the annual preferred dividend payment by the preferred stock's contemporary market price.