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Andreyy89
2 years ago
11

In an efficient market, the cost of equity for a highly risky firm: In an efficient market, the cost of equity for a highly risk

y firm: decreases as the beta of the firm's stock increases. will be less than the market rate but higher than the risk-free rate. changes by 1 percent for every 1 percent change in the risk-free rate. must equal the market rate of return. increases in direct relation to the stock's systematic risk.
Business
1 answer:
pychu [463]2 years ago
6 0

In an efficient market, the cost of of the firm's equity <em>e. increases in direct relation to the stock's systematic risk.</em>

An efficient market bears these characteristics:

  • <em>Perfect, complete, and instant</em> transmission of information
  • There is no cost to information.
  • Stock prices reflect available information.
  • Forecasting cannot help in generating returns.

Thus, in an efficient market, the cost of equity reflects the market's systematic risk.

Learn more about the efficient market, systematic risk, and cost of equity here: brainly.com/question/25651592

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Broker Needa leaves for vacation. In his absence, associate Wanna will be handling the escrow accounts. If Wanna errors with the
ANEK [815]

Correct/Complete Question:

Broker Needa leaves for vacation. In his absence, associate Wanna will be handling the escrow accounts. If Wanna errors with the accounting procedures:

A. Broker Needa's license will be revoked

B. Broker Needa's vacation may be permanent as he is ultimately responsible

C. The Commission will excuse Needa and Wanna; everyone needs a vacation

D. Broker Wanna's solely responsible for her actions

Answer:

B. Broker Needa's vacation may be permanent as he is ultimately responsible

Explanation:

Since Broker Needa is the employer of Wanna, he is ultimately responsible for the errors as the assistant works under his license. Brokers are always responsible for agents under their license.

I hope this helps.

4 0
3 years ago
The reasons to study economics include which of the following?
Sliva [168]
I would say all of the above.
These are all the reasons that I study economics.
6 0
3 years ago
You are the project manager for a project to demolish an existing library in your town and construct a new library in its place.
sesenic [268]

Answer:

The finishing of the assignment in the allotted time allotment is critical. To finish the undertaking in a limited ability to focus time it is imperative to utilize whatever number gifted individuals as would be prudent. However, utilizing more individuals would prompt expanded expenses and thus expanded spending plans.  

To accomplish this it is essential to initially design the arrangement of exercises that should be finished. When the equivalent is arranged, it is basic that gifted work ought to be looked to place the exercises in real life.  

For the finishing of the undertakings one would require:  

  1. Project Manager  
  2. Architect  
  3. Designer  
  4. Contractor-The contractual worker would need to set up 2 artisans, 1 painter,1 circuit tester, 2 craftsmen and 2 cleaners.  
  5. Accountant  

The bricklayers would have the significant lump of the work that must be identified with destruction and building the block dividers and putting them.This would additionally require the assistance of cleaners to enable the artisans to will the necessary material just as complete the cleaning post work. Additionally, the put dividers should be watered which will be finished by the more clean. When the dividers are constructed which will take around 3 months as there are just 2 bricklayers. When that is part of the way through the circuit repairmen and the craftsmen can all the while start with their work which will take around a month's time.The dividers will be built totally at this point and the painters would then be able to be utilized to paint the library. This work will be finished in around 5 months time. Crafted by the engineer should be possible by the fashioner who might be controlling the laborers with respect to the sort of dividers, the columns , the shading on the dividers and so forth.  

Henceforth one of the three assets that can be killed is the engineer. This will likewise be financially savvy as the charges of the engineer are more than that of a planner and a similar work can be delivered by the fashioner dependent on the spending limits.  

The task director can additionally lessen one more asset as a more clean. For the development just as painting as the work is separated into patches, one cleaner would get the job done as an assistance to all the specialists in question. The experts included would themselves be able to deal with the appointed errands dependent on the courses of events.  

The third asset that can be checked out is the craftsman. Just one craftsman can be utilized to get the racks, counters and the racks structured so the work is finished inside cutoff times.

6 0
4 years ago
Seth, Janice, and Lori each borrow 5,000 for five years at an annual nominal interest rate of 12%, compounded semi-annually. Set
Margaret [11]

Answer:

The total amount of interest paid on all three loans is 8,748.

Explanation:

Each person has borrowed 5,000 for the same period and with the same interest rate. However, the repayment is made differently by each person.

We calculate the interest paid by each person, and then sum up the three interest payments.

Seth pays = [5000 x (1 + 0.12/2)^10] - 5000 = 3,954

Janice pays = 5,000 X 0.06 x 10 = 3,000

Lori pays = [(5,000 x 10) / 7.36] - 5,000 = 1,794

Total interest payment = 3,954 + 3,000 + 1,794 = 8,748  

3 0
3 years ago
Read 2 more answers
Jeff visited a car dealership and test-drove a used car. After discussing the price with Jake, a salesman at the dealership, and
Orlov [11]

Answer:

Since this whole sales agreement is about a car, then it falls under the statute of frauds. Any sales contract or offer for any amount of $500 or more needs to be signed. We are not told the final price of the car, but if we consider that only the discount was $500, then we can assume that the price of the car was higher than that. Since the note was not signed, then the promise is not valid.

6 0
4 years ago
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