Answer:
Task a:
The answer is $24,500.
Task b:
The answer is 17%
Explanation:
<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST component cost of EQUITY?</h3><h3>Solution:</h3>
We already know the following:
Projected net income = $21,000
Payout ratio = 30%
Retention ratio = 70%
Debt share = 40%
Equity share = 60%
Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×
= $21,000 × 
= $24,500
<h3>Answer:</h3>
The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.
<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>
k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth
Formula:
k(e) = 
+ 0.05
Where
Do = $2.00
G = 0.05
P = $21/88
= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05
= ($2.10/$21.88(1-.20)) + 0.05
= ($2.10/$21.88(0.80) + 0.05
= 0.17 or 17%
<h3>Answer: </h3>
The component cost of equity by selling new common stock = 17%
This is a key idea with international trade. This involves what is known as comparative advantage.
let's say country A can produce a ton of soybeans in 4 hours and a ton of corn in 2 hours. While country B can produce a ton of soybeans in 15 hours and a ton of corn in 5 hours.
Looking at this set up you can see that country A can produce both corn and soybeans faster, so they have an absolute advantage in both!
However what trade is based on is opportunity cost. So if we think about how much corn country A has to give up to produce soybeans, they have to divert a total of 4 hours from corn to soy beans to produce one ton of soy beans. That 4 hours could be used to produce 2 tons of corn (since 2 hours for 1 ton and we're taking away 4 hours!). So opportunity cost of soybeans in country A is 2 corn.
In country B they would need a total of 15 hours to produce one extra ton of soybeans, but those 15 hours could instead be used to produce 3 tons of corn (5 hours per ton and we're stealing 15 total hours). That means country B's opportunity cost is 3 corn.
Since A has a lower opportunity cost in produce soybeans they will specialize and B will specialize in corn.
Answer:
news items
Explanation:
Public relations refers to the communication that the company's have with the public through media outlets, which is why they are perceived as news items. This being the case, the public sees this news item and pays attention to this alone, as opposed to other promotional communication methods such as newspapers and articles where various information is cluttered together making it difficult to focus on one thing alone.
Malcom has an external locus of control, aka he believes that things are influenced by forces outside of his control.
Miles has an internal locus of control and believes that he is responsible for influencing the outcomes of things in his life.
The best way in handling this is by explaining it to the person again in a clear and understandable manner in which you wouldn't leave without him or her repeating or assuring that he or she does understands the topic that he or she finds difficult to understand. It is needed that a person who is being asked by the new retail associate should be understandable for the person is new at his or her department and needs some people to guide him or her through.
