Answer: C. separation of legal ownership and management control
Explanation: Public traded company can go on with their operation undisturbed when the founder dies, because there is separation of ownership from management of the company.
Public traded companies usually have a board which management report to, the board is the highest decision making body in the company.
Answer:
10.45%
Explanation:
Calculation to determine the cost of debt
B/S = 1.57 − 1
B/S = .57
.156 = .14 + .57(1 −.21)(.14 − RB)
.156 = .14 + .57(.79)(.14 − RB)
RB = .1045*100
RB= 10.45%
Therefore the cost of debt is 10.45%
Answer:
New price (P1) = $72.88
Explanation:
Given:
Risk-free rate of interest (Rf) = 5%
Expected rate of market return (Rm) = 17%
Old price (P0) = $64
Dividend (D) = $2
Beta (β) = 1.0
New price (P1) = ?
Computation of expected rate on return:
Expected rate on return (r) = Rf + β(Rm - Rf)
Expected rate on return (r) = 5% + 1.0(17% - 5%)
Expected rate on return (r) = 5% + 1.0(12%)
Expected rate on return (r) = 5% + 12%
Expected rate on return (r) = 17%
Computation:
Expected rate on return (r) = (D + P1 - P0) / P0
17% = ($2 + P1 - $64) / $64
0.17 = (2 + P1 - $64) / $64
10.88 = P1 - $62
New price (P1) = $72.88
Answer: Evaluation and Control.
Explanation:
If the company is to measure it's performance based on their goal and objectives, this implies that the goal and objective of that company has become a tool with which the company can appraise their performance which is a form of evaluation.
Answer:
The correct answer is option a.
Explanation:
The initial price of movie rentals is $3.25.
The initial quantity is 100.
The price falls to $3.
This causes demand to rise to 120.
The price elasticity of demand a ratio of change in quantity demanded to change in price level.
The elasticity is calculated at -2.25, through the process given in images.
The price elasticity of demand here is greater than 1 which means it is elastic.
So, option a is the correct answer.
