Answer:
Cost of Equity 16.33%
Explanation:
We solve for this using CAMP:
risk free = 0.0387
premium market = (market rate - risk free) 0.0903
beta(non diversifiable risk) = 1.38
Ke 0.16331 = 16.33%
We are given with the risk free rate of return and the market premium already so we just need to plug into the formula to solve for the expected return on the stock.
I saw on quizlet.com that the answer to this question is $199,000 and that number appears to be one of your choices. If I were you I would choice C.
<span>The quote captures Smith's description of the complexity and scope of the division of labor, and its ability to increase the standard of living in a given society. Smith believes that the propensity to truck, barter and exchange is part of human nature, and it is precisely this capacity that best organizes the economic system in large scale societies. The cooperation of the many thousands, inspired by each person's self interest, is what allows for the economic system to flourish, spreading opulence and raising the overall quality of life. Since observations on the progress inspired by the division of labor begin the book, Smith uses the contemplation of simple items (pins, for instance) as a starting point for his theorizing on the organization of economics in general.</span>
Answer: $546
Explanation:
The amount realized by Roberta in the exchange will be gotten through the addition of the fair value of the stock that was acquired to the liability that's assumed by the corporation. This will be:
Fair value of stock acquired = $356
Add: Liability assumed by corporation = $190
Amount realised = $356 + $190 = $546
It is possible but there should be some type of criteria that needs to be met. For example, the market should have room for both products and the other important thing to have in mind is that the company must have sufficient resources in order to produce both products simultaneously.
