Answer:
Cost of equity = 19.1
%
Explanation:
Cost of equity = required rate of return + flotation cost
The Capital assets pricing model would be used to determined the required rate of return
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c </em>
Using the CAPM , the required rate of return is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) - required return
β- Beta
Rm- Return on market
Rf- Risk-free rate
DATA
E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%
E(r) = 3% + 1.1× (14% - 3%) = 15.1
%
Cost of equity = required rate of return + flotation cost
= 15.1
% + 4% = 19.1
%
Cost of equity = 19.1
%
Answer:
a. $45 billion.
Explanation:
The aggregate expenditures must have fallen by = 0.75*$65 billion
= $45 billion
Therefore, The aggregate expenditures must have fallen by $45 billion.
<span>If parts are replaced when you have work done on your vehicle,request the replaced parts be returned to you when you pick up your vehicle. We are replacing the parts for safeness of the vehicle which can avoid accidents due to old parts in the vehicle.Then we want to know which part is replaced so that for next time replacement it will be useful.Even replacements is of higher rate we don't want to risk our life and other's life.</span>
Pay , work hope this helped you have a good day
Answer:
cab fares will be higher.
Explanation:
The supply of cabs would fall as a result of the limit. The fall in supply would lead to a rightward shift of the demand curve for cabs.
As a result, equilibrium price (cab fares) would increase and equilibrium quantity would fall.
subway is a substitute for cabs
Due to the increase in the price of cabs, there would be an increase in the demand for subway. This would lead to a rise in equilibrium price and quantity
