Hey there,
Answer:
Secondary Ageing
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Answer:
sell off part of its inventory and or equipment
Explanation:
Debt/Equity=
Total Shareholders’ Equity /
Total Liabilities
Answer:
(a) 14%
(b) 15%
(c) 15.48%
Explanation:
cost of retained earnings:
= ($3.03 ÷ $34) + 0.05
= 0.09 + 0.05
= 14%
Therefore, the Evanec's cost of retained earnings is 14%
Flotation cost percentage:
= [($34 - $28.90) ÷ $34] × 100
= 0.15 × 100
= 15%
Therefore, the Evanec's percentage flotation cost is 15%.
Cost of new common stock:
= ($3.03 ÷ $28.90) + 0.05
= 0.1048 + 0.05
= 15.48%
Therefore, the Evanec's cost of new common stock is 15.48%.
Answer:
- Single asset = Coefficient of Variation
- Portfolio = Beta
Explanation:
When dealing with standalone risk, coefficient of variation is best because it shows the amount by which the asset's returns might deviate from the average returns of the market.
As for portfolio assets that are well diversified, the best measure would be beta because diversified portfolios deal with systematic risk and beta shows the movement of the portfolio in relation to the market and so will show that systematic risk.