Answer:
The cost of equity using the DCF method: 4.39%.
The cost of equity using the SML method: 15.01%.
Explanation:
a. The cost of equity using the DCF method:
We have: Current stock price = Next year dividend payment / ( Cost of equity - Growth rate) <=> Cost of equity = Next year dividend payment/Current stock price + Growth rate = 0.3 x 1.04/80 + 4% = 4.39%.
b. The cost of equity using the SML method:
Cost of equity = Risk free rate + beta x ( Market return - risk free rate); in which Risk free rate is rate on T-bill.
=> Cost of equity = 6.3% + 1.3 x ( 13% -6.3%) = 15.01%.
Based on the information given this type of maintenance is called a maintenance release.
A maintenance release is a release which help to make correction on security issues such as threat or vulnerability without modifying or adding new features to the software.
Maintenance release help to fix or repair programming errors that occur during the software life cycle stage or programming error that occur due to mistake during the requirement stage validating process.
Software that are released often undergo a maintenance release so as detect and fix any error or bug that was detected.
Inconclusion this type of maintenance is called a maintenance release.
Learn more about maintenance release here:brainly.com/question/13860230
Answer:
a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.
Explanation:
A leverage means taking a loan to consummate a deal. So a leveraged buyout is when an entity takes a loan in order to buy all the assets of a firm and take it private.
Leveraged buyout is practices by parties that do not have enough funds to purchase a company, but they see a high return of Investments over time.
So they take a loan to buyout the company in the hope that returns will eventually cover the loan taken
Answer:
Limited Liability Partnership / Limited Liability Company.
Explanation:
- Limited Liability Partnership: A limited liability relationship is a company in which certain or all members have defined obligations, based on the law. Consequently, it can show collaboration and organizational features. Each partner in an LLP is not accountable or liable for any wrongdoing or incompetence of another party.
- Limited Liability Company: A limited liability company is a management structure whose proprietors are not personally responsible for the obligations or responsibilities of the business. Limited liability corporations are hybrid organizations that combine a company's features with that of a partnership or sole business entity.
A franchise can be used.
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Explanation:</u></h3>
Franchise refers to the authorization that is given by the government for involving in commercial activities. It is the permission that is obtained legally for using the ideas, expertise and processes of some one else with their permissions.
In the example given, a firm is willing to provide all necessary materials for the preparation of coffee and wants to penetrate the European market. The company here provides all the equipment, ingredients, trademarks and operating systems and hence it can make use of franchise type of strategy.
