Answer:
Temp Force required rate of return is 13%
The shareholders of B&B will have rights of dividend in the company's profit.
Explanation:
Temp Force company will require a rate of return based on the risk of the company. The beta factor determines the business risk of the company. For the Temp Force the beta factor is 1.2
Required rate of return of temp Force;
r = Rf + (Rm - Rf) * beta
r = 7% + (12% -7%) * 1.2
r = 13%
B&B shareholders will have voting rights in the company and they are eligible for any dividends declared by the company. They will have rights to elect the director and attend the AGM and EOGM. These rights are given to shareholders to maintain good corporate governance in the company.