<span> A)Starting a new job</span>
Answer:
9.8%
Explanation:
Formula;
Ke=overall cost of capital+(1-.4)(Overall cost of capital-cost of debt)
Where Ke= Cost of equity
overall cost of capital=8%
cost of debt=5%
Ke=8%+(1-.4)*(8%-5%)
Ke=8%+(1.8%)
Ke=9.8%
Answer:
solving for the dollar
:amount:
$150,000 = 100,000 shares * ($x-$11)X = $12.50 meaning, the market price per share must be $12.50 in order to earn $150,000 which is the amount needed to break even with option #1.Therefore, stockholders would probably prefer Action#2 over Option #1 because theCEO has an incentive to operate the company in a manner which would successfully raise the market price per share from $9.00 to $12.50 in order to earn $300,000. Under Option #1, the CEO earns $300,000 regardless if the market price per share goes up or down.
2.Are ethics critical to the CEO's goal of maximizing shareholder's wealth? Is establishing corporate ethics policies and requiring employee compliance enough to ensure ethical behavior by employees?
Answer: Voidable contract.
Explanation: Voidable contract is enforceable by law at the option of one or more parties but not an option of the the other parties. A voidable contract can still be considered valid if its not cancelled by the aggrieved party within a stipulated time. A contract is said to be a voidable contract if the contract is entered into without the free consent of the party. Typical grounds for a contract being voidable include coercion , undue influence and fraud. A contract made by a minor is often voidable.
It is a valid contract which may be either affirmed or rejected at the option of one of the parties involve.
Answer:
D.
an income tax rate cut
Explanation:
Fiscal stimulus programs are government policies aimed at accelerating growth in times of recessions. The government adjusts its spending or tax rates to influence the economy's direction. A stimulus is meant to increase output and increase income.
An income tax rate cut increases the amount of disposable income of consumers. An increase in disposable incomes boosts consumer spending, which results in increased demand. Firms in the service and manufacturing industries will respond to the rise in demand by increasing production. A rise in output creates employment opportunities.
