Answer:
The answer is option ( C.) Increase of 1.06 percent
Explanation:
Data provided in the question:
Cost of equity = 14.6%
Market risk premium = 8.4%
Risk-free rate = 3.9%
Company's beta = 1.4
Now,
Expected Return = Risk-free rate + ( Beta × Market risk premium )
= 3.9% + ( 1.4 × 8.4% )
= 3.9% + 11.76%
= 15.66%
Therefore,
The change in firm's cost of equity capital = 15.66% - 14.6%
= 1.06%
Hence,
The answer is option ( C.) Increase of 1.06 percent
Answer:
Retained earnings is the amount of net income left over for the business after it has paid out dividends to its shareholders. The decision to retain the earnings or distribute them among the shareholders is usually left to the company management.
Explanation:
hope this helps you with your question
Answer:
the bank net interest income for the current year is $140,000
Explanation:
The computation of the bank net interest income for the current year is shown below:
= (Interest earning assets × Interest rate earned)-(Interest bearing liabilities × Interest rate rate)
= $5,000,000 × 6% - $4,000,000 × 4%
=$300,000 - $160,000
= $140,000
Hence, the bank net interest income for the current year is $140,000
Answer:
The first foundation is called THE foundation You need to maintain a accurate balance so you can keep track
Explanation:
