Answer:
30.92%
Explanation:
You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM
<u>Dividend discount model;</u>
cost of equity; r = (D1/P0) +g
whereby, D1 = next year's dividend = 3.00
P0= current price = 13.65
g = dividend growth rate = 11% or 0.11 as a decimal
r = (3/13.65) + 0.11
r = 0.2198 + 0.11
r= 0.3298 or 32.98%
<u>Using CAPM;</u>
r = risk free + beta (Market risk premium)
r = 0.049 + (2.8 * 0.0856)
r = 0.049 + 0.2397
r = 0.2887 or 28.87%
Next, find the average of the two cost of equities;
=(32.98% + 28.87% )/2
= 30.92%
Answer:
c. The systematic risk of a portfolio can be effectively lowered by adding T-bills to the portfolio.
Explanation:
If we want to less the systematic risk of the portfolio so we have to add the t-bills so that the systematic risk could be minimized
The other statements that are mentioned are incorrect as for risk these statements are wrong
So only c option would be considered as correct
Hence, the correct option is c.
The answer is most like a Market Economy
Answer:
Credit of $80,000
Explanation:
Big-Mouth Frog Corporation Calculation for Retained earnings
Using this formula
Retained earnings =Revenue- Expenses
Where,
Revenue =$200,000
Expenses =$180,000
Let plug in the formula
Retained earnings =$200,000-$180,000
Retained earnings =$80,000
Therefore when the Income Summary is closed to Retained Earnings, the amount of the credit to Retained Earnings will be $80,000
Answer:
a description of her needs or feelings, for example, Clara can tell Melissa, "We're having the meeting for new parents this Friday and our presentation is still not ready. I need you to put in more time and effort so that we have the presentation ready on time. Right now, I'm feeling pressured and burdened because I seem to be doing all the work, yet you give Simon the impression that we worked together on it. I don't think that it is fair.’’
a description of the situation that resulted in the needs or feelings, for example, Clara can tell Melissa, "Last week I spent a lot of time reading all the information we have in our files about the new children and their parents so that we could create a presentation that is specifically suited to their needs. You did not contribute to this at all, but you gave Simon the impression that we worked on this together."
the consequences of the situation you are facing, for example, Clara can tell Melissa, "I enjoy working with you Melissa; I think you are a lot of fun and have many bright ideas. However, if I have to put in all the effort and you just take the credit, I will have to speak to Simon about it.
Explanation:
.