Answer:
$31.82
Explanation:
market price $50
expected rate of return /Re) = 14%
Div = $50 x 14% = $7
risk free rate (Rf) = 6%
market premium (Rm - Rf) = 8.5%
beta = ?
14% = 6% + (beta x 8.5%)
beta x 8.5% = 14% - 6% = 8%
beta = 8% / 8.5 = 0.941
if beta doubles to 1.882, then Re will be:
Re = 6% + (1.882 x 8.5%) = 22%
new market price of the stocks = $7 / 22% = $31.818 = $31.82
Answer:
truce
Explanation:
Here is the full question :
Next Saturday, my best friend. Sol and I will have separate acts in a citywide talent contest. But
we've just made a _____with each other that will help us from feeling jealous if one of us
wins and one loses. We've decided that if one of us wins that person will share the prize money
with the other one.
Which word BEST completes the sentence?
truce
alliance
treaty
pact
A truce is an agreement between people to stop fighting for a limited.
Sol and his best friend made an agreement that would stop them from fighting
A pact is an agreement between people
Answer & Explanation: An origination fee is a payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan.
Answer: Decrease in fixed costs
Explanation:
When using the tax-shield approach, the relevant method of calculating operating cashflow is;
= (Sales - Cash Costs) * (1 - tax rate ) + (Depreciation * tax)
Looking at the formula it can be inferred that if fixed costs (part of cash costs) were to decrease, the cash from sales would be higher and would therefore result in an increased operating cashflow for the company.
