The approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.
The bond-yield-plus-risk-premium approach does assumes that cost of equity is closely related to the firm's cost of debt.
- The premium approach does help to determine the value of an assetof a company's such as its traded equity.
However, the approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.
Read more about the premium approach:
<em>brainly.com/question/20354983</em>
Answer:
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Explanation:
I believe I excel at geological field work like mapping and showing the distribution of the rocks and features such as faults and explaining the landforms by their geological basis and also how geological structures can cause stability problems in open pit mines.
<span>This is a true statement. When Joseph is setting these plans, he is giving himself a roadmap on how he and his employees will best achieve these goals over the timeframe required. By planning, he can make sure that the business stays on track to meet whatever figures the company has set forth.</span>
Answer:
129 bracelets and 59 necklaces.
Explanation:
Kings departments store wants to maximize profit by making a combination of its two products necklaces and bracelets. The King store should use a strategy so that it can generate maximum profit with its available rubies, diamonds and emeralds.
$250a + $500b = Maximum Profit
For rubies : 2a + 5b = 625
For Diamonds : 3a + 7b = 800
For Emeralds: 4a + 3b = 700
Solving the equation we get maximum profit value of $61,750.The King departments stores should make 129 bracelets and 59 necklaces which will bring maximum profit to the store.
