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likoan [24]
2 years ago
12

Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a busine

ss. Lily wants to be able to avoid being held personally liable for any problems the business has. Which of the following would lead Lily to choose a sole proprietorship organization for her business?
A. Little Capital
B. Avoidance of personal liability
C. Possession of a partner
D. None of the above
Business
1 answer:
Ede4ka [16]2 years ago
8 0
It’s A.little capital
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3 years ago
_____ affects the perceptual process because employees are more likely to remember information that is consistent with their sel
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3 years ago
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Divide the two numbers
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Answer:

Cost of equity = 11.7%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.</em>

Under CAPM, Ke= Rf + β(Rm-Rf)  

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Using this model,  

Ke=4% + 1.10×7%

= 11.7 %

Cost of equity = 11.7%

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3 years ago
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