Answer: 7.46%
Explanation:
The CAPITAL ASSET PRICING MODEL is a very useful tool for calculating a firm's Cost of Equity.
The Formula is,
Rc = Rrf + b(Rpm)
Where,
Rc is the Cost of Equity
Rpf is the Risk risk free rate
b is beta
Rpm is the risk premium
Plugging in the digits we have,
Rc = 0.0350 + 0.88(0.045)
= 0.0746
The firm's cost of equity from retained earnings based on the CAPM is therefore 7.46%
Answer:
Informational
Explanation:
The role of "informational" control is to challenge the organization's beliefs and goals and to continuously monitor, test, and review strategies. Informational control is when a business gathers information and analyzes that information from different perspectives to come up with better strategy's in order to better the business itself.
Hope this helps.
Answer:
The correct answer is: microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
Explanation:
Economics is divided into two different categories: microeconomics and macroeconomics. <u>Microeconomics </u>is the study of individuals and business decisions, while <u>macroeconomics </u>looks at the decisions of countries and governments. They are interdependent and complement one another since there are many overlapping concerns between the two fields.
<u>Microeconomics </u>is the study of decisions made by people and businesses. Microeconomics focuses on supply and demand and other forces that determine the price levels in the economy. Microeconomics tries to understand human choices and resource allocation.
<u>Macroeconomics</u>, on the other hand, studies the behavior of a country and how its policies affect the economy as a whole. It analyzes entire industries and economies. Macroeconomics focuses on aggregates and econometric correlations.
<span>Ans : Wotan can reinvest the whole amount ( 1000 X 0.50 = 500 ) in the stock. If the ex-dividend price is $ (150- 2.50) = 147.50, this should involve the purchase of 500/ 147.50 , or about 3 shares of the firm.</span>
Answer:
D. Getting debt financing
Explanation:
Debt financing refers to the money that is raised by a firm. The money is raised by selling the bills or bonds to the investors in exchange for becoming creditors. The fixed income product is sold to the creditors. The money is promised to be returned along with the interest in the future. The money received is in the form of debt.
