Answer:
D) Pix must have knowledge of all material facts relating
Explanation:
If the contract is beneficial for Pix, then they will want to ratify it. Unless Sky is aware that Able was not authorized to sign contracts on behalf of Pix, they probably wouldn't even tell them about what really happened. Although, Pix will want to know all material facts relating to the contract at the time it is ratified in order to verify if it is really good for them.
Answer:
company B's cost of equity is 14.0375% - 8.975% = 5.0625% higher than company A's cost of equity
Explanation:
cost of equity = risk free rate + (beta x market premium)
risk free rate = 4.25%
market premium = market return - risk free rate = 11% - 4.25% = 6.75%
Company A's cost of equity = 4.25% + (0.7 x 6.75%) = 8.975%
Company B's cost of equity = 4.25% x (1.45 x 6.75%) = 14.0375%
this means that company B's cost of equity is 14.0375% - 8.975% = 5.0625% higher than company A's cost of equity.
Answer:
$1.25
Explanation:
dividend growth:
year growth rate dividends
1 24% Div₁ = 1.24Div₀
2 24% Div₂ = 1.24²Div₀ = 1.5376Div₀
3 24% Div₃ = 1.24³Div₀ = 1.906624Div₀
4 14% Div₄ = 1.906624Div₀ x 1.14 = 2.17355136Div₀
indefinite 8% Div₅ = 2.17355136Div₀ x 1.08 = 2.347435Div₀
required rate of return = 10%
current stock price = $86
stock price for terminal growth rate = Div₅ / (10% - 8%) = Div₅ / 2% = 117.3717734Div₀
current stock price = $86 = 1.24Div₀/1.1 + 1.5376Div₀/1.1² + 1.906624Div₀/1.1³ + 2.17355136Div₀/1.1⁴ + 117.3717734Div₀/1.1⁴ = 1.12727Div₀ + 1.27074Div₀ + 1.43247Div₀ + 1.48456Div₀ + 80.1665Div₀ = 85.48154Div₀
$86 = 85.48154Div₀
Div₀ = $86 / 85.48154 = $1.006065
Div₁ = 1.24 x $1.006065 = $1.2475 ≈ $1.25
Answer: Option (d) is correct.
Explanation:
According to the law of supply, it states that there is a positive relationship between the price of a commodity and the quantity supplied of a commodity. This means that as the price of a commodity increases, as a result the quantity supplied of that commodity increases.
Therefore, any change occur in the prices of a commodity will affect the quantity supplied of a commodity not supply of a commodity.
Answer:
d. joint venture.
Explanation:
A cooperative, business trust or a franchise are generally stable businesses that are formed to operate in the long run.
On the other hand, a joint venture occurs when different entities get together to do business and that can be a one time event only. In this case, Rusty was hired for spraying the fields one time only (one time event).
