Answer:
company B's cost of equity is 14.0375% - 8.975% = 5.0625% higher than company A's cost of equity
Explanation:
cost of equity = risk free rate + (beta x market premium)
risk free rate = 4.25%
market premium = market return - risk free rate = 11% - 4.25% = 6.75%
Company A's cost of equity = 4.25% + (0.7 x 6.75%) = 8.975%
Company B's cost of equity = 4.25% x (1.45 x 6.75%) = 14.0375%
this means that company B's cost of equity is 14.0375% - 8.975% = 5.0625% higher than company A's cost of equity.
The lender must wait at least 15 days before receiving notice of a breach of the terms not being upheld and a mortgage default. This authority is frequently outlined in a clause in the mortgage contract between the lender and the borrower.
What is power?
The ability to exert authority, control, or influence over another person is referred to as having "power." Decision-making has benefited from the power.
According to the mortgage laws, a lender must wait at least 15 days before receiving notice that their mortgage has defaulted due to a breach of the terms. The mortgage contract between the lender and borrower often include a clause expressing this authority.
As a result, mortgage act as 15 days notice period, breach of contract and legal obligations.
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The answer to this question is 1900s.