Answer: review your strengths, weaknesses, and career goals
Answer:
A. 5.56%
B. 13.55%
Explanation:
In this question, we are asked to calculate the equity cost using the DCF method and the SML method
A. DCF approach
cost of equity =[ D0(1+growth )/ current price] +growth
= [.40 (1+.05) / 70 ] + .05
= [ .42 / 75] + .05
= .0056 +.05
= 0.0556 same as 5.56%
B)SML approach
Cost of equity = Rf +Beta (Rm-Rf)
= 5.8+ 1.25 (12 -5.8 )
= 5.8+ 1.25 *6.2
= 5.8 + 7.75
= 13.55%
Answer:
cash payments for merchandise total is $44,000
Explanation:
purchase for the year
Beginning Investment + Purchases - Ending Investment = Cost of Merchandise sold
13,500 + Purchases - 10,500 = 45,000
Purchases = 42,000
Therefore, the total cash paid for merchandise
Beg. A/P + Purchases - End. A/P = Cash Paid
7,000 + 42,000 - 5,000 = $44,000
Option B
Cash flows that could be realized from the best alternative use of an owned asset are called opportunity costs
<u>Explanation:</u>
Opportunity costs describe the gains an individual, investor or firm misses out on when picking one choice over another. Bottlenecks are usually a basis of opportunity costs. Analyzing opportunity costs can lead you to extra effective decision-making. Opportunity cost investigation also performs a vital role in preparing a business's capital structure.
Opportunity cost cannot forever be completely quantified at the time when a decision has arrived. Alternatively, the person performing the decision can only approximately predict the consequences of various dilemmas
