Outstanding bonds are currently yielding 8.42%, and the firm’s analysts estimate that the risk premium of its stocks over its bonds is currently 1.48%. as result, lincoln’s cost of internal equity = 9.9
Cost of equity = Bond's yield + risk premium
Internal equity, in its simplest form, refers to how employees in a firm who hold comparable roles or possess comparable skill sets are paid, whether through salaries or other perks associated with the job. Internal equity, then, is about equal pay for equal work.
Stock in the context of finance refers to the shares into which ownership of a corporation or company is divided.
[1] (In particular, the term "stocks" is also used to describe shares in American English.) A single share of stocks represents a portion of the corporation's ownership in relation to the total number of shares.
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Money encourages specialization by decreasing the exchange cost.
The correct option is B.
<h3>What is the exchange cost?</h3>
Exchange cost is the price by which the product is exchanged between the customer and seller.
Money eliminates the double coincidence of desires, allowing for greater specialization and productivity.
As a result, money enables us to make better use of our limited resources by allowing us to generate more in the same number of resources.
This aids in the reduction of scarcity.
Thus, B is the correct option.
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<span>If a person is self employed, they are responsible for paying their own taxes. There are tables available on line to calculate the amounts. They should be paid no less than quarterly. If the income is significant, an account should be set up, or they should be paid more frequently. There are fees for late payments.</span>
