Answer:
The firm's cost of equity is C. 14.05 percent
Explanation:
Hi, we need to use the following formula in order to find the cost of equity of this firm.
Where:
r(e) = Cost of equity
rf = risk free rate
rm = Market rate of return
Everything should look like this.
So, this firm´s cost of equity is 14.05%
Best of luck
B/ <span>Cost of repainting the kitchen before moving in</span>
Answer:
Jacobsen Corporation
Income from continuing operations of $621,000 will be reported.
Explanation:
The income from continuing operations is the same thing as the operating income. It is the pre-tax income that is reported on Jacobsen Corporation's income statement for the year ended December 31, 2016. The tax rate of 30% is applied on this figure to obtain the income tax expense for the year. But, for Jacobsen that has other unusual items, these are taken into consideration before the income tax is imputed to obtain the after-tax income.
Answer:
c) Catastrophe Bonds
Explanation:
These type of bonds are also known as the CAT bonds, and they are issued at any catastrophic event which is foreseen in the future. Basically these are insured linked securities that are used in the process of managing risks that are associated with the catastrophic events such as mentioned in the question i.e hurricane.
Any investor before investing in these bonds should fully understand what type of bonds are these because they posses a greater risk of low return and are very different from conventional bonds.
Hope this helps.
Thanks buddy.
