Answer:
The correct answer is option B.
Explanation:
According to the efficient market hypothesis, when the market is in semi-strong form the future changes in the stock prices cannot be predicted by the publicly available information.
The stock prices quickly adjust to all the publicly available information. In this situation, an investor can earn above-average returns if he possesses private information which is not available to all.
Answer:
Kd = 7%
Ke = D1 + g
Po(1 - FC)
Ke = $2 + 0.09
$40(1 - 0.15)
Ke = $2 + 0.09
$34
Ke = 0.1488 = 14.88%
WACC = Ke(E/V) + Kd(D/V)(1-T)
WACC = 14.88(60/100) + 7(40/100)(1 - 0.40)
WACC = 8.928 + 1.68
WACC = 10.6%
Explanation:
In this case before-tax cost of debt is given. Cost of equity is expected dividend divided by current market price after flotation cost plus growth rate. WACC is calculated as cost of equity multiplied by the proportion of equity in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.
Based on the fact that the legal documents in question are to be used to incorporate the skateboard business, these are<u> Articles of Incorporation. </u>
<h3>What are Articles of Incorporation?</h3>
When a company needs to be created and registered with the government, it will need to supply certain documents that lead to its creation.
These are the Articles of Incorporation which serve as proof that a company has been registered / incorporated in a certain state.
Find out more on Articles of Incorporation at brainly.com/question/1198900.
Answer:
The corporation must recognize a $10,000 loss.
Explanation:
The last activity that a corporation must perform upon liquidation is to distribute property, assets or cash to its shareholders. The adjusted basis for any property or assets handed out in a complete liquidation is the fair market value of the property or assets.
In this case, the corporation's property had a basis of $40,000 but a fair market value of $30,000, so the distribution was done using the fair market value of $30,000.
Answer: D. the procyclical behavior of labor productivity occurs due to firms' labor hoarding practices.
Explanation:
Keynesian Economists argue that firms practice labor hoarding which is the practice of keeping workers when they should not such as when there is a Recession. They should not keep these workers because demand has slowed so keeping them means that they will not be producing to meet the demand.
The procyclical behavior of labor productivity means that labor productivity goes by the Business Cycle in that it is high when the Economy is booming and low when it is in a Recession.
Productivity is calculated by dividing goods produced by the number of labor producing them.
By refusing to fire workers during a Recession, there will be too many workers producing too few goods which will decrease labor productivity which is why according to Keynesian Economists, the productivity is low in Recessions.
