Answer: The correct answer is "D. Caleb is personally jointly and severally liable along with Anna.".
Explanation: Caleb is personally jointly and severally liable along with Anna. When there is joint and several liability, a person has the right to claim payment of a debt or compensation for damage to any of those responsible or even all of them, without anyone being able to excuse themselves to evade their responsibility.
You can tell that the costumer is impatient and appears to be after what they are looking for.
The award received after completing a four year undergrad program is called a bachelors degree.
Answer:
a.
The cost of equity is 10% if beta is 0.75
b.
The cost of equity is 11.20% if beta is 0.9
c.
The cost of equity is 12.40% if beta is 1.05
d.
The cost of equity is 13.60% if beta is 1.2
Explanation:
The SML approach is used to calculate the required rate or return (r) which is the minimum return that the investors require to invest in a company's stock. This is also referred to as the cost of equity. The formula for required rate of return under SML is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on Market
a.
r = 0.04 + 0.75 * (0.12 - 0.04)
r = 0.10 or 10%
b.
r = 0.04 + 0.9 * (0.12 - 0.04)
r = 0.112 or 11.20%
c.
r = 0.04 + 1.05 * (0.12 - 0.04)
r = 0.124 or 12.40%
d.
r = 0.04 + 1.2 * (0.12 - 0.04)
r = 0.136 or 13.60%
Answer: A monopolistic company will produce to the point where the marginal cost is equal to marginal income, which is the production point called optimal.
Marginal Income = Marginal Cost
In other words, from that point the company is not able to obtain more profit if it increases its production. Because it happens that the cost of producing one more unit is greater than the marginal income for that unit, it would be necessary to reduce the level of production because it is excessive.
As in a situation of perfect competition the company is accepting price, then it sells its product at the price given by the market, so its optimal point will be: Marginal Cost = Marginal Income = Price
