Temperature, oxygen and food
Answer:
The company's cost of equity capital is 0.056
Explanation:
cost of equity capital
= risk free rate + beta*(expected return on market - risk free rate)
= 0.01 + 0.92*(0.06 - 0.01)
= 0.056
Therefore, The company's cost of equity capital is 0.056
If the severity of risk is low and the frequency of the risk event occurring is high thanwe should Avoid the risk.
High Frequency/ High Severity- Risks are almost certain to occur and when they occur impact will be very high. In such a case it is best to use Avoidance as a risk management technique. If avoidance is not possible then prevention and insurance techniques can be considered. High frequency/ Low severity- This more serious risk and occurrence is high but the impact is low. Examples of such risks include workers’ injuries and shoplifting. A common way to manage this type of risk is through Prevention.
Low frequency/ High severity- The impact of these kinds of risks is very high and can bankrupt a business. Insurance is the best technique to manage these risks that have low loss frequency and high loss severity. Low frequency/ Low severity- Retaining and self-insuring the risk. Risk occurrence is low and impact is also very low. In most cases, the costs of managing them outweigh the cost of retaining them.
Learn more about risk frequency here:- brainly.com/question/254161
#SPJ4
Answer:
1.7900 shares
2.7300 shares
3.$22.95
4.$59
5.$6,300
6.$10.50
7.$791,000
Explanation:
The number of preferred shares=total par value of preferred shares issued/par value=$165,900/$21=7900 shares
The number of preferred shares outstanding is issued shares minus treasury stock=7900 shares-600 shares=7,300 shares
average issue price of preferred stock=(total par value+additional paid capital)/issued shares=($165,900+$15,400)/7900=$22.95
Average issue price of common stock==common stock amount/issued shares=$590,000/10000=$59
The treasury stock decreases stockholders' equity by the amount paid to repurchase the shares which is $6,300
Treasury stock cost $ per share=cost of treasury cost/number of treasury stock=$6300/600=$10.50
Total stockholders' equity in $=preferred stock+preferred stock additional paid in capital+common stock+retained earnings -treasury stock
Total stockholders' equity in $=165,900+15,400+590,000+26000-6300=$791,000
