Answer:
The cost of equity based on the CAPM is 10.888%
Explanation:
The cost of equity of the stock or the required rate of return (r) is the minimum return required by investors to invest in a stock. The CAPM approach provides an equation to calculate the required rate of return (r) based on the risk free rate, stock's beta and the market risk premium. The formula for r is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate or rate on T bills
- rM is the expected return on market
r = 0.042 + 0.88 * (0.118 - 0.042)
r = 0.10888 or 10.888%
The entity that pledges to make the interest and maturity payment for bond issues is called the <u>issuer.</u>
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<h3>Who is a Bond issuer?</h3>
A bond is a completely fixed instrument that reflects an investor's debt to a borrower.
Bonds terms and conditions include the end date when the capital of the loan is scheduled to be paid to the bond owner with a fixed or variable interest payment.
Bond Issuers are businesses or entities that generate and take loans from people who buy bonds in exchange for periodic interest and repayment of the principal amount when the bonds mature.
Learn more about who is a Bond issuer here:
brainly.com/question/25525397
Answer:
The correct option is (a)
Explanation:
Property dividend is distributing assets as dividends to its stockholders. This distribution is not in the form of cash. It could be any asset including any stock that the organization holds with some other company.
In this case, Houser corporation distributes shares of Baha corporation to its shareholders as dividends. This is an example of property dividend.
Answer:
Yes
Explanation:
Yes, it is unethical if the specifics are important or affect someone. If this is the case then it is important for the information to be completely provided so that the individual is completely informed. Otherwise, it could prevent them from taking necessary action and pushing towards the result that they want. Instead without this information the will ultimately come to a bad scenario that they could have avoided.
Answer:
The price should be recorded as $167,500
Explanation:
As per the accounting principles, assets should be recorded at the price they were paid for. In case of a purchase, the accountant should record in the books the amount the company paid to acquire the asset. For sales, the amount received from the buyer is the figure to be recorded in the books.
For Reliable Repair Service, there were different prices quoted, but the buyer paid $167,500. It means the company sold the land for $165,000. This is the amount that should be recorded in the books.
