If you were to buy 5 yards at $14 a yard, your first cost would be at $70. But with 14 being 20% of 70, you would subtract 14 out of the $70, which would leave your final cost at $56.
<span>Vinny might be able to force the completion of the project. If the two had a written agreement that has not been violated or made conditionally null, then Spud could be legally obligated to complete the project, dependent on the interpretation of the contract by the court.</span>
The answer to the question is false
Answer:
The cash flow to stockholders amounts to $45
Explanation:
Cash flow to stockholders is the term which is defined as the cash amount which the company pays out to the shareholders.
The cash flow to stockholders is computed as:
Cash flow to stockholders = Dividend paid - New equity raised
where
Dividend paid is computed as:
Dividend paid = Net Income × %
= $360 × 35%
= $126
New equity raised is $81
So, putting the values above:
Cash flow to stockholders = $126 - $81
Cash flow to stockholders = $45
Answer:
The correct answer is option (A).
Explanation:
According to the scenario, the computation of the given data are as follows:
First, we will calculate the Market risk premium, then
Market risk premium = (Required return - Risk free rate ) ÷ beta
= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%
So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk
Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65
= 0.5676 + 0.2986
= 0.8662
By putting the value, we get
Required rate of return = 4.20% + 0.8662 × 5.048%
= 8.57%
