Reliable and of good character or the latter of that unreliable and criminalistic.
It is challenging to calculate the company's cost of equity due to its private ownership. Therefore, it seems sense that you would wish to assess the cost of capital for SMI using the pure play approach. Tesla has been picked as the representative business.
To ensure as much resemblance when determining the riskiness of the project, the pure play strategy simply advises that we select a public firm that is 'purely' engaged in the type of work or projects we are going to carry out.
Tesla appears to have been chosen as a representative by SMI because it is a vehicle manufacturer and works in battery development.
Improvements
1) Decide on an appropriate pure play business. in and of itself, challenging. By then looking for pure play companies that manage those kinds of projects, they may identify distinct projects in their portfolio and discover appropriate betas for each of their different initiatives.
2) The analysis of options and futures on the shares of the publicly traded company that is utilized for pure play can be used to determine forward-looking betas. This will resolve the problem with betas that look ahead.
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Answer:
never heard of that person
Explanation:
Principal (P) = $13300
Rate of interest (r) = 3.7%
Number of times compounded in a year (n) = 2
Number of years (t) = 18 years
Then
Amount = P(1 + r/n)^nt
= 13300[1 + (0.037/2)]^36
= 13300[1 + 0.0185]^36
= 13300(1.0185)^36
= 13300 * <span>1.9346
= 25730.54 dollars
From the above deduction, it can be concluded that the correct option among all the options that are given in the question is the third option or option "C".</span>
