Answer:
C. 11.8 percent
Explanation:
The computation of the cost of equity is shown below:
= Risk free rate of return + Beta × market risk premium
= 3% + 0.8 × (14% - 3%)
= 3% + 0.8 × 11%
= 3% + 8.8%
= 11.8%
Hence, the cost of equity is 11.8%
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
accrual accounting
Explanation:
The accrual accounting technique recognizes income and expenses in the period they were earned or incurred. Revenue is recorded in the financial year that the sales invoice was generated and not when payment is received. An expense is recorded in the same period that the economic activity occurred, not when payment was made.
The accrual accounting technique applies the matching concept, where revenues and expenses are recognized the same period that their related economic transactions happened. The accrual method is one of the two accounting techniques. The cash method is the other technique, it recognizes income and expenses when payments change hands.
Answer:
This is an example of an emergent strategy
Explanation:
An emergent strategy is an unplanned strategy it is the strategy that actually happens as a result of changes in the external environment of the business and it shows the responds to such changes. Although it is unintended, adopting an emergent strategy helps a business adapt more flexibly to the practicalities of changing market conditions.
Therefore the type of strategy adopted is an emergent strategy
Answer:
variance 0.163849748
Explanation:
![\left[\begin{array}{cccc}State&Return&Probability&Weight\\recession&0.2&-0.116&-0.0232\\fail&0.8&0.165&0.132\\Total&&0.049&0.1088\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7DState%26Return%26Probability%26Weight%5C%5Crecession%260.2%26-0.116%26-0.0232%5C%5Cfail%260.8%260.165%260.132%5C%5CTotal%26%260.049%260.1088%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The mean average return will be 0.1088
( (0.165 - 0.1088)² + (-0.116-0.1088)² ) / 2 =
( 0,00315844 + 0,05053504 ) / 2 = 0,02684674
Now, we calcualate the root:
²√0,02684674 = 0.163849748
If the opportunity cost for producing a particular good is lower for one producer than the other the former producer has comparative advantage for producing the good.
