I believe your answer would be C. Speech and Debate. Being a lawyer requires lots of debate, and speech to support your answer and make it more clear.
Answer:
Stock Y is overvalued and Stock Z is undervalued.
Explanation:
The stock is fairly valued when the required rate of return on the stock is equal to its expected return. If the expected return on the stock is more than the required rate of return, the stock is undervalued and vice versa.
The required rate of return on the stock is calculated under the CAPM approach suing the following formula.
r = rRF + Beta * rpM
Where,
- rRf is the risk free rate
- rpM is the risk premium on market
r of Stock Y = 0.052 + 1.3 * 0.077 = 0.1521 or 15.21%
The required rate of return of Stock Y (15.21%) is more than its expected rate (14.9%) which means the stock is overvalued.
r of Stock Z = 0.052 + 0.95 * 0.077 = 0.12515 or 12.515%
The required rate of return of Stock Z (12.515%) is less than its expected rate (12.8%) which means the stock is undervalued.
It is <u>False</u> that if a corporation has S corporation status, it must pay income taxes at the corporate level.
<h3>What is an S corporation?</h3>
An S corporation is a corporation whose profits or losses are not assessed for corporate taxes.
Instead, the profits and losses of an S corporation are passed through to the business and reported on the owners' personal tax returns.
Thus, it is <u>False</u> that if a corporation has S corporation status, it must pay income taxes at the corporate level.
Learn more about S corporation income tax status at brainly.com/question/14778467
#SPJ1
Answer:
roses are red violets are blue suger is sweet but why arent you
