Traditionally, the formulas used to express a firm's cost of equity are the dividend capitalization model and the capital asset pricing model (CAPM).
Explanation:
Generally, two risk components determine a firm's cost of equity. The first is the systematic risk associated with the broader equity market. All firms are exposed to this risk, and it cannot be mitigated through diversification.
The second risk component is the unsystematic risk associated with the firm in question. This risk, often reflected as beta, a measure of the stock's volatility in relation to the volatility of the broader market, can be mitigated via diversification.
A monopolistically competitive firm faces a downward sloping demand curve and so it is a price searcher.
The demand curve for monopolistically competitive firm will be considerably more elastic than the demand curve that a monopolist faces because the monopolistically competitive firm has a very less control over the price that it can charge for its output.
The firm's control over its price will largely depend on the degree to which its product is differentiated from competing firms' products.
The monopolistically competitive firm will be a price‐searcher rather than a price‐taker because it faces a downward‐sloping demand curve for its product.
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Answer:
1.25
Explanation:
The net worth ratio uses data from the balance sheet to compare the level of a company's debt against its total net worth.
The formula for calculating the debt to net worth ratio is as below.
Debt to networth ratio = Total debts/ Total net worth.
Liabilities are the debts of a business.
in this case, = 5,000,000 / 4,000,000
Debt to net worth ration= 5/4
=1.25
A.nswer:
a) A decrease of $9,500.
Explanation:
Calculation for the change in total stockholders' equity
Using this formula
Change in total stockholders' equity = Total Revenues amount - Total Expenses amount - Dividends amount
Let plug in the formula
Change in total stockholders' equity =$96,000 - $85,500 - $20,000
Change in total stockholders' equity = Decrease of $9,500
Therefore the change in total stockholders' equity during the year was: a decrease of $9,500
There is still a risk that you experience oversteering.
Moving cars that goes on high speed often need more time to decelerate into stopping position.
Under such situation, even after the recovery, the oversteering might still cause collisions that would be really dangerous for the driver.