Answer:
The correct word for the blank space is: callable.
Explanation:
A Callable Provision -typically referred when talking about bonds- is one that can be paid back to the issuer partially or in full before its maturity date. This provision allows the financial instrument issuer to replace higher than market instruments with ones lower.
Answer:
$
Net income 100,000
Less: Dividend paid <u>70,000</u>
Retained earnings for the year <u> 30,000</u>
Statement of Retained earnings for the year ended December 31, 2018
$
Retained earnings on January 1, 2018 115,000
Add: Retained earnings for the year <u>30,000</u>
Retained earnings at December 31,2018 <u>145,000</u>
Explanation:
In this case, we need to calculate the retained earnings for the year, which is net income minus dividend paid. Then, we will add the retained earnings for the year to retained earnings at the beginning of the year. This gives the retained earnings at the end of the year.
Answer:
I do! :)
Explanation:
Please give me brainliest :)
Answer:
a.
The cost of equity is 10% if beta is 0.75
b.
The cost of equity is 11.20% if beta is 0.9
c.
The cost of equity is 12.40% if beta is 1.05
d.
The cost of equity is 13.60% if beta is 1.2
Explanation:
The SML approach is used to calculate the required rate or return (r) which is the minimum return that the investors require to invest in a company's stock. This is also referred to as the cost of equity. The formula for required rate of return under SML is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on Market
a.
r = 0.04 + 0.75 * (0.12 - 0.04)
r = 0.10 or 10%
b.
r = 0.04 + 0.9 * (0.12 - 0.04)
r = 0.112 or 11.20%
c.
r = 0.04 + 1.05 * (0.12 - 0.04)
r = 0.124 or 12.40%
d.
r = 0.04 + 1.2 * (0.12 - 0.04)
r = 0.136 or 13.60%
