Answer:
B. False
Explanation:
Flotation costs are cost that are concerned with issuing new common stock. It is the amount of money or cost incurred by an organization when offering its securities to the public. The cost may include legal fees, auditing fees and registration fees. When the flotation cost goes higher, firms are more likely to use debts rather than preferred stock. This is simply because debt is lesser than both common stock and preferred stock. Also, its fallacy to think that preferred stock doesnt have flotation cost. Its only that its not as high as the ones for new common equity.
The proportion of the optimal risky portfolio that should be invested in stock A is 0%.
Using this formula
Stock A optimal risky portfolio=[(Wa-RFR )×SDB²]-[(Wb-RFR)×SDA×SDB×CC] ÷ [(Wa-RFR )×SDB²+(Wb-RFR)SDA²]- [(Wa-RFR +Wb-RFR )×SDA×SDB×CC]
Where:
Stock A Expected Return (Wa) =16%
Stock A Standard Deviation (SDA)= 18.0%
Stock B Expected Return (Wb)= 12%
Stock B Standard Deviation(SDB) = 3%
Correlation Coefficient for Stock A and B (CC) = 0.50
Risk Free rate of return(RFR) = 10%
Let plug in the formula
Stock A optimal risky portfolio=[(.16-.10)×.03²]-[(.12-.10)×.18×.03×0.50]÷ [(.16-.10 )×.03²+(.12-.10)×.18²]- [(.16-.10 +.12-.10 )×.18×.03×0.50]
Stock A optimal risky portfolio=(0.000054-0.000054)÷(0.000702-0.000216)
Stock A optimal risky portfolio=0÷0.000486×100%
Stock A optimal risky portfolio=0%
Inconclusion the proportion of the optimal risky portfolio that should be invested in stock A is 0%.
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brainly.com/question/21273560
General Motor Company(GMC) is a manufacturing company that manufactures automobiles in U.S.A.
Answer:
The correct answer is C. Identify customer wants.
Explanation:
Despite the fact that the architects, due to their experience, can provide alternatives based on factors such as location, size, type of house, etc., the client's requirements play a very important role since, prior to this, they have designed in their minds what they would like to have. in your new house. The architects serve as support to give a professional touch to the property, but taking into account the requirements of the person it is possible to adjust certain aspects to offer the best possible experience when the construction is finished.
Answer:
Savings and loan institutions–also referred to as S&Ls, thrift banks, savings banks, or savings institutions–provide many of the same services to customers as commercial banks, including deposits, loans, mortgages, checks, and debit cards.
Explanation:
hope this helps if it doesnt then im sorry
