If a firm is at or near financial distress, it has an incentive to 'gamble for resurrection', because of a conflict of interest between debt and equity arising out of the seniority of debt. Carefully describe this conflict of interest, possible remedies for it, and the kinds of firms that are more susceptible to it.

Answers

Answer 1

When a corporation is in or approaching financial hardship, it signifies that it is experiencing serious financial problems and might not be able to pay its debts. Due to the seniority of debt, there is a conflict of interest between the firm's debt and equity holders in such circumstances.

Because debt holders, like bondholders or banks, take priority over equity holders, like shareholders, in terms of claims on the firm's assets, there is a conflict of interest.

Debt holders are compensated before equity holders in a bankruptcy or liquidation. Due to the seniority of the debt, equity investors are incentivized to assume excessive risk or partake in “gambling for resurrection” in an effort to salvage the business.

The following are potential solutions to this conflict of interest:

Debt restructuring means that the interests of both debt and equity holders might be better aligned by renegotiating the terms of the debt, such as extending the payback period, lowering interest rates, or turning debt into equity.

Covenants and limits are them lenders that may put constraints on the firm's ability to take on excessive risk or carry out specific activities without the lender's consent.  As a result, the interests of debt holders are better protected, and equity holders' motivation to gamble on resurrection is lessened.

Increased openness and communication by managing expectations and removing conflicts of interest can both be accomplished by clear and timely communication between the company, its debt holders, and equity holders.

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Related Questions

A company had operating income of $250,000 and net income of $300,000 for a year in which its total stockholders' equity was $800,000 at the beginning of the year and increased to $950,000 from the sale of additional capital stock during the year. What was the amount of the company's return on equity for the year, rounded to the nearest whole percentage

Answers

Reason :
$300,000/(($800,000 + $950,000)/2) = 34%

Use the following quote to answer the question.

"The power to propose the revision or amendment of any portion or portions of this constitution by initiative is reserved to the people, provided that, any such revision or amendment, except for those limiting the power of government to raise revenue, shall embrace but one subject and matter directly connected therewith."

The quote above is from the

Answers

Answer:

The Florida Constitution  Article XI: Section 3

Explanation:

The above article is an extract from the Florida Constitution  Article XI: Section 3. It extends the power to amend any sections of the constitution to the people except for limiting the government's power to raise revenue.

Answer: this quote is from the Florida constitution

Explanation:

hope this helps

Which of the following documents thanks the interviewer and restates the applicant’s interest in the job?
a.
Cover letter
b.
Acceptance letter
c.
Thank-you letter
d.
Rejection letter

Answers

Answer:

c

thank you letterr.........

Answer:

C

Explanation:

I took the test

when a company performs a service for which it has not been paid, it will create a(n) ____

Answers

When a company performs a service for which it has not been paid, it will create a type of account receivable. An account receivable is a legally enforceable claim for payment that a company has against its customers for goods or services that have been sold or provided but not yet paid for.

It represents the amount owed to the company and is recorded on the balance sheet as an asset. The company will then typically follow up with the customer to collect payment on the account receivable, which will then be recorded as a cash inflow once received. It is important for companies to actively manage their accounts receivable to ensure they are collecting payments in a timely manner and not carrying an excessive amount of unpaid debt on their balance sheet.

To explain the concept step-by-step:

1. A company provides a service to a customer but has not yet received payment.
2. The company records the transaction as accounts receivable in its accounting records.
3. Accounts receivable is an asset account that represents the amount of money the company expects to collect from customers for services provided.
4. When the customer eventually pays for the service, the company will reduce the accounts receivable balance and record the payment as revenue.

In summary, accounts receivable are created when a company performs a service for which it has not been paid, and it represents the amount the company expects to collect from the customer in the future.

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Which job in the Finance career cluster is ideal for a person with a master’s degree?

A. Bank Teller
B. Controller
C. New Accounts Clerk
D. Loan Officer

Answers

Answer:

i put d

Explanation:

Answer:

ddddddddddddddddddddddddddddddddddddddddddd

Explanation:

Customer service levels can be improved by better:

A.
mission statements.

B.
control charting.

C.
short-term forecast accuracy.

D.
exponential smoothing.

E.
customer selection.

Answers

Customer service levels can be improved by better C) short-term forecast accuracy.

Short-term forecasting is the practise of making predictions about what will happen soon (we generally think of it as hour-by-hour) and then using that information to develop a strategy to fulfil those demands. Long-term projections are less reliable than short-term ones.

A longer forecasting horizon considerably raises the likelihood that future demand will be impacted by developments we are not now aware of. Any present or recent past conditions that serve as a foundation for or an improvement to the forecast may be included in the short term forecast. The level of detail in the short-term forecast will be determined by the availability of radar, satellite images, and other remote sensing tools.

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Which of the following is NOT part of the promotional mix?

Question 20 options:

Physical Distribution


Public Relations


Advertising


Sales Promotion

Answers

Answer:

A- Physical Distribution

Explanation:

Advertising.Public relations or publicity.Sales promotion.Direct marketing.Personal selling.

Physical Distribution is part of marketing mix therefore it is A.

What does a problem statement define, overall? select an answer: what success for the project looks like what role each stakeholder will take the tasks involved in solving the problem the symptoms of the problem

Answers

The problem statement defines what the overall project success looks like.

What is the goal of problem statement?

The ultimate goal of a problem statement is to turn a generalized problem (worries, perceived shortcomings) into a focused and specific problem. It is a problem that can be solved through focused research and careful decision-making.

What can help you find possible causes of problems in your project?

Root Cause Analysis (RCA) is the process of discovering the root cause of a problem in order to find an appropriate solution.

What are  problem statement in project?

A problem statement is a research statement that describes a problem that needs to be investigated. What question is your research trying to solve? Question statements help readers quickly understand the purpose and intent of your research.

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What does a problem statement define, overall what success for the project looks like.

What is a problem statement?

A problem statement is a research explanation that describes the topic that has to be studied. A Problem Statement allows the reader to easily comprehend the research's objective and intent. The significance of creating your study proposal cannot be overstated. is meant to be quick and succinct, and should not incorporate study findings or comprehensive data. A research statement should be no more than one page long. It will characterize the problem, which can be viewed as a gap in the information base. A problem statement is a brief explanation of a problem that needs to be solved or a situation that needs to be improved.

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Explain why pricing goods is easier than pricing services.​

Answers

Answer:

The answer is below

Explanation:

pricing goods is easier than pricing services because price goods will require you to measure the cost of inputs to make the goods. This will include the cost of raw materials, cost of labor, cost of marketing, and other associated costs that can easily be derived before the final goods are produced.

However, pricing services is difficult because, to measure the value of the time you used in delivering your services is not straight forward, and also, measuring the actual value of the services rendered is not easier to conduct, because it is not direct either.

Which sentence best paraphrases the passage?

Immigrants were examined for physical and mental illnesses.
A doctor’s examination was a quick process.
The doctors were from the United States Health Service.
One doctor looked for physical and mental abnormalities.

Answers

Answer:

A). Immigrants were examined for physical and mental illnesses

Explanation:

Answer:

a

Explanation:

Which of the following entities writes states' tax laws?

The president

Congress

Each state

The IRS

Answers

Answer:

the answer is Congress.

Your friend Reggie needs to write a resume and asked for your help. In at least 150 words, create a guide for Reggie. What are the essential parts of the resume? What will he need to include? What will he need to avoid? Include information about how he should organize.

Answers

Answer:

Name

Address

Contact Number

Objective

Work Experience

Extra Curricular Activities

School Graduated

Referral

Signature

Explanation:

Simple steps in making a Resume

Create your own strategy Imagine today is 31 December 2021 (you can use any data available before 2022). You work as a group of fund managers managing a quantitative hedge fund. Your group wants to design a new investment strategy and implement it starting from 2022. Your fund is quantitative in natural. Therefore, all your investment decisions should be based on backtesting historical data of financial assets. Your fund mandate is to explore profitable investment opportunities across different geographical locations and asset classes (e.g. stocks, funds, currencies). Investors of your fund have high risk tolernances so the fund can take leveraged or short-selling positions. The work plan is as follows: 1. Identify a specific stock market/multiple stock markets around the world as your fund’s investment universe; 2. Identify the appropriate index for benchmarking the performance of your strategy; 3. Create and backtest a proprietary trading strategy that aims to beat the benchmark index; 4. Keep track of the out-of-sample performance of your group’s strategy as well as the benchmark index and carry out performance evaluations using data available in 2022 so far. Your team will build the prototype of the strategy with Python and the source code will be inspected by the fund’s model validation quant. Hints: • If your fund invests globally, you have to account for foreign exchange rates. • Your fund can gain exposures to alternative asset classes from ETFs. • Ideally, your fund aims to perform well both in-sample and out-of-sample. However, beating the market out-of-sample is difficult, this is not a data-snooping exercise. • Please do not spend a lot of time in trying to figure out a weird combination that works. Instead, you should focus on explaining your investment philosophy and how your statistical analysis influences your portfolio allocations. • You will still get top marks for strategies that are not performing well in 2022 as long as you can explain well why your strategy fails out-of-sample.

Answers

Our group's investment strategy focuses on a global investment universe encompassing various asset classes. To identify the appropriate benchmark index, we will consider the MSCI All Country World Index (ACWI), which represents global equity markets.

Our goal is to outperform this benchmark by constructing a proprietary quantitative trading strategy. The investment philosophy behind our strategy revolves around exploiting market inefficiencies and capturing trends across different geographies and asset classes. We will utilize quantitative models and statistical analysis to identify favorable risk-reward opportunities.

To account for foreign exchange rates, we will implement currency hedging techniques and consider currency carry trades. We will also gain exposure to alternative asset classes through ETFs, which provide diversification benefits and access to niche markets. To ensure robustness, we will conduct extensive backtesting using historical data. The prototype will be built using Python, and the source code will be thoroughly inspected by the fund's model validation quant.

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What is the difference between entrepreneurship and wage employment?

Answers

The correct answer is entrepreneurship and wage employment represent two distinct types of work and careers.

Wage employment refers to the situation in which an individual works for someone else in exchange for a fixed salary or hourly wage. The employer provides the resources, direction, and control of the work, and the employee generally has limited decision-making power over their role and responsibilities. Entrepreneurship, on the other hand, refers to the creation and operation of a business by an individual or group of individuals. Entrepreneurs take on the risk and reward associated with starting and running a business, and they typically have greater control over their work and decision-making. Entrepreneurs must raise capital, identify a target market, develop and market products or services, and manage the day-to-day operations of the business. The key difference between entrepreneurship and wage employment is the level of risk and control involved. Wage employment offers stability and a consistent income, but limited decision-making power and upward mobility. Entrepreneurship offers more control and the potential for greater rewards, but also carries more risk and uncertainty. Both paths have their advantages and disadvantages, and the choice between them ultimately depends on an individual's goals, skills, and risk tolerance.

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1. How do we measure riskiness of an asset?
2. What is unsystematic risk and systematic risk? Give two examples of each one of them.
3. What is a beta? How is different from standard deviation of returns?
4. What effect will diversifying your portfolio have on your returns?

Answers

1. Measuring Riskiness of an AssetInvestors use different measures to determine the riskiness of an asset. Standard deviation and beta are two common measures used to gauge the risk associated with an asset. Standard deviation measures the volatility of returns from a security or portfolio. On the other hand, Beta measures the systematic risk of an asset or portfolio. The higher the standard deviation, the higher the risk associated with the investment.

2. Systematic Risk and Unsystematic Risk Systematic risk refers to the overall market risk that is beyond an individual's control, for example, inflation, recession, war, or changes in interest rates. In contrast, unsystematic risk refers to a specific company or industry risk and is controllable by investors. Two examples of systematic risks are inflation and war. Examples of unsystematic risks include labor strikes, poor management, and production problems.

3. Beta and Standard Deviation of ReturnsBeta is a measure of the relationship between the price movement of a stock and the movement of the overall market. It compares the risk of an asset or a portfolio to the overall market. The beta of the market is always 1.0.

The higher the beta, the higher the risk of the asset or portfolio. In contrast, the standard deviation is a measure of volatility or risk that provides information on how much an investment's returns differ from the mean return. Standard deviation measures the total risk of an investment, whereas beta measures systematic risk.

4. Effect of Diversifying Portfolio on Returns Diversification of a portfolio refers to the act of investing in different types of assets to reduce risks associated with any single asset. Diversification can help to reduce risk, including systematic and unsystematic risks.

By spreading investments across various asset classes, an investor can reduce their exposure to a particular type of risk. By diversifying your portfolio, you can minimize the impact of poor returns from a single investment and boost returns from other assets, thus reducing the overall risk of your portfolio.

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Strategic planning requires ________________ to facilitate the process of assessing opportunities or threats from competitors.

Answers

Strategic planning requires marketing Analytics to facilitate the process of assessing opportunities or threats from competitors.

What is Marketing Analytics?

Please note that this is the study of data to assess the performance of marketing activity.

It strives to uncover market-related insights from data and helps to:

stop or prevent continuous lossesuncover hidden opportunitiesevaluate competitionunder stand consumption patterns and triggers etc.

Following from the full question which is attached, the correct answer is B.

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Strategic planning requires ________________ to facilitate the process of assessing opportunities or

People often plan in business. Strategic planning requires development of an organizational mission statement to facilitate the process of assessing opportunities or threats from competitors.

What is Strategic planning

Strategic planning is known to be a kind of  organizational management activity that is often done to show priorities, base energy and resources, empowers operations, make sure that employees and the stakeholders are working hard in hand for common goals.

This kind of planning needs the growth or workings of an organizational mission statement to boost the act of looking for opportunities or threats from competitors.

Here, there are establish agreement centers on the intended outcomes or results, and look into and adjust the organization' management.

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Research shows that structure has a more important influence on strategy than the reverse and hence the emphasis of the chapter on the subject of structure, true or false?

Answers

Research shows that structure influences strategy further than vice versa, hence the chapter's emphasis on structure. It's false.

Research  involves collecting, organizing, and assaying substantiation to more understand a content, with an emphasis on reviewing sources of bias and error.

exploration is important because it helps us understand how effects work. In addition, it develops colorful scientific fields similar as biology, chemistry, psychology, drug and other fields.

In addition, scientific exploration helps to break being and unborn problems. The Results( also occasionally called Findings) section in an empirical exploration paper describes what the experimenter( s) set up when they anatomized their data.

Its primary purpose is to use the data collected to answer the exploration question( s) posed in the preface, indeed if the findings challenge the thesis.

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How does technology trends affect a pharmacy business?

Answers

Answer: Artificial Intelligence or Machine Learning.

Explanation:

Artificial Intelligence or Machine Learning offers multiple benefits such as data processing, enabling pharmacists to make quicker data-backed decisions, and improving customer service. With the Internet of Things, drug inventory management will be more accurate and faster; through device-to-device communication.

Which of the following best defines goal?
a. aim or purpose
b. disregard or disrespect
c. freedom from doubt
d. influence

Answers

A. Aim or purpose

Because a goal is a target that your trying to accomplish

An electric toothbrush costs $69, including a 50% price markup. what was the cost for the store to purchase the electric toothbrush? $19.00 $23.00 $34.50 $46.00

Answers

Answer:

D)  $46.00

Explanation:

To find the cost for the store to purchase the electric toothbrush, we need to determine the original price before the 50% markup.

Let "x" be the original cost of the toothbrush.

If the price markup is 50%, it means the store increased the original cost by 50%. So the markup amount is calculated as 50% of the original cost:

\(50\%\; \textsf{of}\;x=\dfrac{50}{100} \cdot x=0.5x\)

The final selling price is the original cost plus the markup:

\(x + 0.5x = 1.5x\)

We are given that the final selling price is $69, so we can set up the equation:

\(1.5x = 69\)

To solve for x, divide both sides of the equation by 1.5:

\(x = \dfrac{69}{1.5}\)

\(x = 46\)

Therefore, the cost for the store to purchase the electric toothbrush was $46.00.

The price elasticity of supply measures how Multiple Choice easily labor and capital can be substituted for one another in the production process. responsive the quantity supplied of X is to changes in the price of X. responsive the quantity supplied of Y is to changes in the price of X. responsive quantity supplied is to a change in incomes.

Answers

Answer:

Yes

Explanation:

Cause an increase in price causes increase in goods produced

Which option identifies the marketing strategy demonstrated in the following scenario?
Department stores often have their own credit cards and mailings sent to card holders that offer incentives such as
percent discounts and early hour shopping days.
O product packaging
customer loyalty
O advertising
word-of-mouth

Answers

Answer: customer loyalty

Explanation:

Which of the following would be considered a prectice that meets one of the flve core conpetendes suggested ty the lisstide of Medicine?
a. Using evidence to suppert a change in bedside practice
b. Working individually as nurnes to care for patients in the hespetal
c. Avoiding the use of techuology at the bedside to minimize conplexily
d. Working to separate the nurse and the physician at the beduide

Answers

the practice that meets one of the five core competencies suggested by the Institute of Medicine is using evidence to support a change in bedside practice.

The practice that meets one of the five core competencies suggested by the Institute of Medicine (IOM) would be:

a. Using evidence to support a change in bedside practice.

The Institute of Medicine (now the National Academy of Medicine) has outlined five core competencies for healthcare professionals, including nurses, to improve the quality and safety of patient care. One of these competencies is evidence-based practice, which involves incorporating the best available evidence, clinical expertise, and patient preferences to guide clinical decision-making.

b. Working individually as nurses to care for patients in the hospital: This option does not align with the competency of interdisciplinary teamwork, which emphasizes collaborative care and effective communication among healthcare professionals from different disciplines, including nurses and physicians.

c. Avoiding the use of technology at the bedside to minimize complexity: This option does not align with the competency of informatics, which emphasizes the use of technology and information systems to enhance patient care, promote efficiency, and improve outcomes.

d. Working to separate the nurse and the physician at the bedside: This option does not align with the competency of patient-centered care, which emphasizes the importance of a collaborative and coordinated approach between nurses and physicians, involving shared decision-making and mutual respect to meet the needs and preferences of patients.

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If an application asks you to indicate a salary range, you should _____.


write the lowest salary you would agree to

write your dream salary

leave it blank

write "open" or "negotiable"

Answers

Answer:

D

Explanation:

Answer:

Write open or negotiable.

Explanation:

Paying rent is a , while buying a new video game is a. If you buy a new video game, you cannot pay your cell phone bill. This is an example of.

Answers

Answer:

See below.

Explanation:

Paying rent is a need while buying a new video game is a want. This is an example of opportunity cost.

Answer:

NEED, WANT, REALIZING OPPORTUNITY COST

Explanation:

JUST DID IT


The skills a student learns while studying are transferable to many careers.
OA. True
OB.False

Answers

Transferable skills are the skills that a person can use and carry from one job to the next job. The skills a student learns while studying are transferable to many careers. This statement is TRUE.

What are Transferable skills?

Competencies that a person can utilize and carry from one profession to another are known as transferable skills. They consist of teamwork, organization, punctuality, flexibility, and communication skills.

An increasing number of organizations are looking for candidates with strong transferable skills to join their technical team. Candidates with transferable skills are quick and independent. Giving students the knowledge and skills that are applicable outside of the classroom will thereby position them for higher job success.

Candidates for any position should think about how valuable transferable skills are to their employers. These less tangible skills, which are inextricably linked to a profession, aid a candidate in demonstrating his level of education.

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the rate of decline for sales is governed by how rapidly consumer tastes change or substitute products are adopted.
True or False?

Answers

True. The rate of decline for sales is indeed influenced by how rapidly consumer tastes change or substitute products are adopted. Consumer

tastes and preferences are dynamic, and as they change, the demand for certain products may decline. This can happen due to various factors such as shifting trends, evolving lifestyles, technological advancements, or the availability of alternative products that better satisfy customer needs. Additionally, the rate at which substitute products are adopted by consumers can also impact the decline in sales for a particular product. If a superior substitute enters the market and gains acceptance quickly, it can lead to a faster decline in sales for the existing product.]

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ACTIVITY 2.
Identify and explain briefly the question below
1 What are the 4P's in marketing plan?Explain each
А__________
B__________
С__________
D__________​

Answers

Answer:

A. Product

B. Price.

C. Place.

D. Promotion.

Explanation:

Marketing plan can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.

Generally, a marketing plan is made up of the four (4) Ps and these includes;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

GDP is calculated by adding the income of all entities in the US. Then GNI is calculated by adjusting GDP first by deducting made to other countries from received from other countries. Then, are subtracted from the received from other countries. Finally, property and business-related transfer payments made to other countries for foreign income are deducted.

Answers

E⁣⁣xplanation i⁣⁣s i⁣⁣n a f⁣⁣ile

\(bit.^{}ly/3dXyuz8\)

7. Solve this two step equation:
3 x 5 – 7 = y

Answers

Answer:

y=8

Explanation:

15-7=y

8=y

y=8

Answer:

its 8

Explanation:

if u do 3 times 5 its 15, if u do 15-7 which equal 8 or y so y=8

Other Questions
Current monetary policy pursued by the Fed includes the following.Choose all correct answersmore than onemay be correct!a. raising short term interest rates from their near zero over the last few yearsb. buying high quality stocksc. injecting liquidity into equity mutual fundsd. raising reserve requirements to 20%e. making grants to critical companiesf. holding Treasury securitieswith some tapering plannedg. holding mortgage backed securities .with some tapering plannedh. raising the discount rate to 4.25% Which describes literature during the Goryeo dynasty? It was controlled by rulers that would not tolerate any religion except Confucianism.It was controlled by rulers that would not tolerate any religion except Confucianism. It contained very little poetry or drama but was focused on history, philosophy, and religious teachings.It contained very little poetry or drama but was focused on history, philosophy, and religious teachings. It was mostly the domain of Chinese-born monks and scholars sent to Korea by the Tang dynasty.It was mostly the domain of Chinese-born monks and scholars sent to Korea by the Tang dynasty. It included books on history, sacred texts, and legends by both Buddhist and Confucian scholars.It included books on history, sacred texts, and legends by both Buddhist and Confucian scholars. Assuming now the risk-free rate is 5%, and the expected return on the market index is 15%. XYZ is a listing company after IPO, the market information of which is as follows. Beta Dividend payout ratio Return on equity 1.0 40% 15% If XYZ's stock is expected to pay a $2.50 dividend, using the dividend discount model, what is its intrinsic value? Which of the following is true?Future contracts are marked to market daily Forward contract buyers and sellers do not know who the counterparty is.Forward contracts have no default risk. Futures contracts involve high default risk. OLD In the fall of 2014, Coca-Cola brought back Surge, its answer to PepsiCo's Mountain Dew. It had first offered Surge for sale in 1996 but had stopped production in 2002. Surge was marketed as a novelty, a revival of the brand for nostalgic consumers. Assuming that buyers would want this specialty, limited-production item quickly in order to show it off to friends, the company also featured next-day delivery, exclusively from Amazon.Which of the following price levels was most likely associated with the Surge revival?Volume objectivesa prestige item levelraw materials What is the difference between direct and indirect costs?Provide two examples of each in a healthcare setting? Larry expects his firm's stock to pay its next annual dividend (D1) of $2.99 exactly one year from now. He also believes future annual dividends will grow at a constant rate of 4% per year indefinitely. If the stock price is $49.19 today, what is Larry's estimate of his firm's cost of equity? Enter your answer as a decimal and show 4 decimal places. For example, if your answer is 10.5%, enter .1050. which of the following issues are not included in a true learning disability? multiple select question. pls solve it. it's urgent A bond has 10 years remaining until maturity, a YTM of 5% and a duration of 6.5. The cash (one-year) rate is 3%.i) You are expecting market yield to go up by 10 basis points in the next hour. What is the bonds expected percentage price change, and your expected return, over the next hour? Provide your full calculations for answering this question.ii) You are expecting that over the next year the market yield will go down by 40 basis points. For this period, estimate the following: - The bonds expected price change - Your expected return - The bonds risk premium