Answer:
Cost of equity, re= 0.098356 or 9.84 %
Explanation:
D1 = $ 1.25
P0 = $ 27.50
gL = 5 % = 0.05
F = 6 % = 0.06
Cost of equity, re can be calculated using the formular below:
Cost of equity, re = D1/ {P0 x (1- F)} + gL
= $ 1.25 / {$ 27.50 x (1- 0.06)} + 0.05
= $ 1.25 / ($ 27.50 x 0.94) + 0.05
= $ 1.25 / 25.85 + 0.05
= 0.048356 + 0.05
Cost of equity, re= 0.098356 or 9.84 %
Answer:
The degree to which the portfolio variance is reduced depends on the degree of correlation between securities is the correct answer.
Explanation:
Answer:
Insider Trading
Explanation:
Insider trading is an illegal act which is performed by an individual on the bases of confidential information. Any information which is not for public use and is used for personal benefit is an offense which is committed by Sally.
She leaked the information to Alice who further used that information to her own personal benefit which is straight off an illegal act falling in the category of insider trading.
<u>Answer:</u>
<em>Sold product liability suit against the maker, alleging a design defect, the court may consider an available alternative design
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<u>Explanation:</u>
At the core of the idea of faulty item configuration exemplified in the Restatement (Third) of Torts: Product Liability is the accessibility of a sensible elective plan that could have diminished or kept away from the danger of mischief. In any case, a product might be defective, regardless of whether no sensible elective plan exists, if it neglects to give possible directions or warnings of a predictable danger of damage. An ongoing choice of the Massachusetts Appeals Court represents the use of these standards.
