Answer:
8.76%
Explanation:
Using the CAPM formula:
Ke = Rf + Beta Factor * Risk premium
Here
Rf is 5%,
Beta Factor is 1.6
And
Risk Premium is 6%
By putting values, we have:
Ke = 5% + 1.6 * 6%
Ke = 14.6%
Now we will find new firm's cost of equity under 40% debt by simply multiplying it with the equity percentage:
Weighted Cost of Equity = 14.6% * 60% = 8.76%
Addressing marketing failure is a way of having to know the causes of this failure and to be able to determine the better ways of solving it and to prevent it from happening it again, by this, in the future, they will be able to produce a more sustainable and stronger one.
Except a price that fits comfortably in your budget
I believe the answer is D. Hiring employees.
Hope that helped.
Answer:
Correct Answer is "A"
(A) One tool of corporate governance is choosing a good investment banker.