Answer:
False
Explanation:
In simple words, Severance pay can be understood as a salary and/or incentives given to an individual by a company after the job is over. In order to help an individual obtain a new job, severance arrangements can include additional rewards, such as life care and observer ship support.
Thus, the weekly benefits are not included in this and the above statement is incorrect.
Frictionally unemployed describes their employment status.
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Explanation:
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Frictional joblessness is constantly present in the economy, coming about because of transitory changes made by laborers and bosses. Frictional joblessness is a piece of the general work picture, including common joblessness, which is the base joblessness rate in an economy because of monetary powers and willful development of work.
In any case, common joblessness mirrors the quantity of laborers that are not utilized as a result of an absence of ability or were supplanted by innovation. Frictional joblessness, then again, is from intentional moves by laborers yet is remembered for common joblessness since it speaks to the base degree of joblessness in an economy.
The frictional joblessness rate is determined by partitioning the laborers effectively searching for employments by the complete work power. The laborers effectively searching for employments are ordinarily arranged into three classifications: laborers who found employment elsewhere, individuals coming back to the workforce, and new participants.
Ongoing alumni from school or first-time work searchers may do not have the assets or proficiency for finding the organization that has the activity that is accessible and reasonable for them. Thus, they don't take other work, incidentally waiting for the better-paying employment.
Answer:
MILLER STORES
Ke = Rf + β(Market risk premium)
12.7 = Rf + 1.38(7.4)
12.7 = Rf + 10.212
Rf = 12.7 - 10.212
Rf = 2.488%
DIVISION A
Ke = Rf + β(Risk premium)
Ke = 2.488 + 1.52(7.4)
Ke = 2.488 + 11.248
Ke = 13.74%
Explanation:
First and foremost, we need to calculate risk-free rate using the data relating to Miller Stores. In this case, the cost of equity, beta and market risk premium of Miller Stores were provided with the exception of risk-free rate. Then, we will make risk-free rate the subject of the formula.
We also need to calculate the cost of capital of division A, which is risk-free rate plus beta multiplied by the market risk-premium.
