Risk premium is also called A• Risk addictive B• Credit spread C• Debt spread D• Risk spread

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A: Given, Return on equity is 14% retained earnings is 75%

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Q: or part B, is it meant to be the expected return on the stock in all market conditions or should I…

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A: Given, Checkbook balance=$19,250.17. Total fees or charges deducted=$28.50. Interest credit=$50.19.

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Q: Yoyo Ltd is a UK company which is selling some goods to Marcos Co, an Australan conpany. The parties…

A: First of all we need to understand what is the basic meaning of Letter of Credit. Letter of Credit…

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A: There are some main participants in financial system that act as suppliers and demanders of funds.…

Q: If your total assets equal $11,886 and your total liabilities equal $10,296; your solvency ratio is:…

A: To calculate the solvency ratio we will use the below formula   Solvency ratio = Total assets/Total…

Q: You plan to retire at the age of 65 and be able to live for 30 years paying yourself $80,000 per…

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Q: As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI…

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Q: a.   The managerial salary package should include an incentive component   b.   Executive stock…

A: The agency problem exist in the corporations due to conflict of interest between the shareholders…

Q: On March 30, Century Link received an invoice dated March 28 from ACME Manufacturing for 63…

A: Given: Particulars Amount Number of television sets 63 Cost of televisions $135 Chain…

Q: 3. You are purchasing a new home and need to borrow $325,000 from a mortgage lender. The mortgage…

A: Given

Q: Tom Inc. report a $30million of net income. its EBIT is 50millions, the flat tax rate is 25%? What…

A: Solution:- Earnings before interest and tax (EBIT) means the net operating income of an entity. The…

Q: Why is it vital to retain periodic records as part of the risk management process

A: Risk management Managing the risk related to an organization is known as risk management. It is a…

Q: 37. A pie chart meets the ACCURATE criteria for good quality information because visualising the…

A: A pie chart meets the ACCURATE criteria for good quality information because visualizing the…

Q: Janina, Incorporated, has the following mutually exclusive projects.    Year Project A Project B 0…

A: Discount Rate = 15% Required Payback Period = 2 years  Year Project A Project B 0  $-30,000.00…

Q: The last step in the financial planning process is to Group of answer choices use financial…

A: Financial planning is very important tool used for managing the business finance. Under this, all…

Q: Which of the following statements is correct? Group of answer choices Corporations and partnerships…

A: Analysis of the given options: 1. Corporations and partnerships have an advantage over…

Q: Here is a simplified balance sheet for Caterpillar Tractor: Caterpillar Tractor Balance Sheet ($ in…

A: It is given that: Shares outstanding – 660 mil Market price - $86 Book value of the company – 17,535

Q: You would like to estimate the weighted average cost of capital for a new airline business. Based on…

A: The unlevered cost of capital refers to the cost of equity or the theoretical cost of a project…

Q: Pedro, who deposited P500,000.00 today  with a financial Institution M, agreed with the latter that…

A: Monthly interest rate = Annual interest rate / Number of months in a year = 8%12 = 0.666666667%…

Q: Josh has an investment account with $50,000. If Josh earns 6% per year and contributes $400 each…

A: Future Value = Present Value * ( 1 + Intererst rate) time period

Q: Mr. Smith takes out a $100,000.00 loan with an effective yearly interest rate of 10%. He must repay…

A: Given: Particulars Amount Loan (PV) $100,000 Interest rate 10% Years 30

Q: Cash & short-term investments Accounts receivable Income taxes receivable Inventories Prepaid…

A: Here,

Q: Hanson corporation's present year ROE remained at last year's 14% level, while the profit margir…

A: Return on Equity = Profit margin*Asset turnover ratio*leverage ratio   Asset turnover ratio = Return…

Q: The New Fund had average daily assets of $2.2 billion in the past year. New Fund's expense ratio was…

A: The expense ratio of a fund is used to measure how much its assets are used for administrative and…

Q: Viljoen plc has suffered the following events: (1) An accidental failure of IT security resulting in…

A: Several event have been given. We have to identify those that correspond to cyber risks in action.…

Q: Lever Age pays an 9% rate of interest on $9.70 million of outstanding debt with face value $9.7…

A: Given, Rate of interest = 9%. Outstanding debt = $9.70 million. EBIT = $2.3 million. Depreciation =…

Q: Luisa is concerned about risks and liabilities involved with business ownership. What actions can…

A: There are different legal structure of business such as proprietorship, partnership, corporation…

Q: Explain the difference between financial capital and physical capital

A: Every type of business id defined by its assets. These assets can be classified as financial capital…

Q: Calculate the percentage return on a​ 1-year Treasury bill with a face value of ​$10,000if you pay…

A: The treasury bill is issued at discount but matures at the face value. There is no interest on the…

Q: Can the government tax its own agencies or instrumentalities? Explain.

A: Agencies and instrumentalities are the divisions of the federal government that are for the serving…

Q: A manufacturer purchased and installed a production machine 6 years ago at a cost of Php 2,000,000.…

A: Book value/cost When a fixed asset is purchased, each year its original cost is written down by the…

Q: Which of the following statements is most correct? Group of answer choices None of these. A firm…

A: The Weighted Average cost of capital: The weighted average cost of capital is a single number used…

Q: What is the future value of $3,500 in 19 years at an APR of 8.8 percent compounded semiannually? (Do…

A: Future Value is the value which is measured at a specified date at a given interest rate,  it can be…

Q: 35. Mangold plc, a large centralized business in the UK, has conducted a strategic review and…

A: Mangold plc, a large, centralized business in the UK, has conducted a strategic review and…

Q: If your total assets equal $50,000 and your total liabilities equal $15,000; your debt ratio is…

A: To calculate the debt ratio we will use the below formula   Debt ratio = Total liabilities/Total…

Q: Your company has a well that needs some work to resume production. The work will cost $550,000.…

A: Note: This post has several questions. The first three have been answered below.

Q: 4. A manufacturing firm maintains one product assembly line to produce generators. The demand for…

A: Maximum production time= per day demand/operation time per day per day demand=85/7=12.14 operation…

Q: 15. Malcolm owns an empty shop unit. Following long negotiations with Urquhant plc, which operates a…

A:

Q: Determine the equal payment series for 10 years that is equivalent to a payment series of $6,000 at…

A: Information Provided: Year 1 Payment = $6000 Decrease in yearly payment = $250 Interest rate = 5%…

Q: What challenges do community endowments funds face? What would be their goal displacements?

A: Here, we will look at challenges that community endowments funds face, and what their goal…

Q: Suppose that starting at age 25, you make steady contributions to a retirement account (with initial…

A: In the above question we are given Future value=815000 Rate=7% number of years=40 We have to…

Q: A hardware store purchased a tool at P20,000 per unit. At what price should the tool be sold so that…

A: Profit is made when a business entity sells an item to any other party. Profit amount is the selling…

Q: Christie, Incorporated, has identified an investment project with the following cash flows.…

A: Data given: Year Cash flow($) 1 1020 2 1250 3 1470 4 2210   Formula to be used: FV= P*…

Q: M purchased a small lot in a subdivision, paying P200,000 down and promising to pay P15.000 every 3…

A: r = 12%/4 = 3% t = 10 years*4 = 40 Quarterly payments = P15,000 Loan value = 1-1+r-tr×Quarterly…

Q: Michael and Sandy purchased a home for $100,000 five years ago. If it appreciated 6% annually, what…

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Q: Statesville's population in 2010 was about 24,400, and was growing by about 1.2% each year. If this…

A: Population in 2010 (PV) = 24,400 Population in 2015 (FV) = ? Growth rate (g) = 0.012 Period (n) = 5…

Q: Taxable Income $0-$9,700 $9,701-$39,475 $39,476-$84,200 $84,201-160,725 $160,726-$204,100…

A: The tax rate depends upon the amount of taxable income. The greater the income the marginal tax rate…