The answer is 1) to identify problems in advance 2)to get funding 3) to attract employees and management 4) to keep the company focused on specific goals
Roger is wrong by 3cm, so
3/15 X 100 = 20% error.
Answer:
9.6845%
Explanation:
Market risk premium = Market return - Risk free rate
7.3 = 11.2 - Risk free rate
Risk free rate = 3.9%
(1) Use CAPM:
Cost of equity = Risk free rate + Beta × Market risk premium
= 3.9% + 1.06(7.3)
= 11.638%
(2) Use DDM
:
Stock price = [Latest dividend × (1 + dividend growth rate)] ÷ (Cost of equity-dividend growth rate)
$17 = [0.92 (1 + 0.022)] ÷ (Cost of equity - 0.022)
Cost of equity = 7.731%
Cost of equity = average value from using DDM and CAPM
Cost of equity = 0.5 (7.731 + 11.638)
= 9.6845%
Answer:
Beta distribution
Explanation:
Beta distribution In probability theory
is regarded as a part of continuous probability distributions with a defined interval which could be 0 and 1, and it is characterized with two positive parameters (α and β) which is seen as
as exponents of the random variable .
It should be noted that Beta distribution probability is commonly used to model the inherent variability of activity time estimates in project management
Answer:
Explanation:
The journal entry is shown below:
Bonds payable A/c Dr $60,000
Premium on bonds payable A/c Dr $10,000
To Common stock A/c $45,000
To Paid in capital in excess of par A/c $25,000
(Being the conversion of bonds is recorded)
The computation is shown below:
For bonds payable
= sixty $1,000 convertible bonds
That means
= 60 × $1,000
= $60,000
For Premium on bonds payable:
= $70,000 - $60,000
= $10,000
For Common stock:
= 9,000 shares × $5
= $45,000
And, the remaining balance is credited to paid in capital in excess of par
