Which of the following is not a common term for a mortgage loan? A. 30 years B. 20 years C. 15 years D. 10 years

Financial reporting by not-for-profit, nongovernmental entities should provide information useful in: a) Assessing management st

kari74 [83]

Answer:

D. All of the above

Explanation:

Financial reporting by not-for-profit, nongovernmental entities should provide information useful in Assessing management stewardship and performance, Assessing services and the ability to continue to providing services, Making resource allocation decisions.

4 0

2 years ago

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Aspen Integrated Marketing used to have a strict hierarchical structure, with the information given only to those who required i

Dennis_Churaev [7]

Answer: d. open-book management.

Explanation:

OPEN-BOOK MANAGEMENT is a style of management where employees are given financial information on the company to help them perform better.

The concept is rooted in a theory that workers tend to have more motivation and be more productive when they feel as though they are being treated like Business partners who are usually the ones with access to such data as opposed to employees who usually do not.

5 0

2 years ago

Company A has a beta of 0.70, while Company B's beta is 1.20. The required return on the stock market is 11.00%, and the risk-fr

nikdorinn [45]

Answer:

e) 3.38%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Required rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For A

= 4.25% + 0.70 × (11.00% - 4.25%)

= 4.25% + 0.70 × 6.75%

= 4.25% + 4.725%

= 8.975%

For B

= 4.25% + 1.20 × (11.00% - 4.25%)

= 4.25% + 1.20× 6.75%

= 4.25% + 8.1%

= 12.35%

So, the difference would be

= 12.35% - 8.975%

= 3.375%

The (Market rate of return - Risk-free rate of return) is also known as market risk premium

7 0

2 years ago

Suppose you win a lottery. You have two choices for receiving the money. Choice 1: $50 000 at the end of each year for 20 years

dimaraw [331]

Answer:

The first option of an annuity is better because the amount is worth  $2,288,098 in today's cash

Explanation:

The better choice would be the option with the higher present value discounted at the required rate of return. The required rate of return is 8%.

To determine the better choice, we would compare the present value of choice 1 to the $500, 000 receivable today under choice 2

The present value of $50 000 at the end of each year for 20 years is

PV = A × ((1+r)^n - 1)/r

r- 8%, n - 20, A= 50,000, PV - Present value

PV = 50,000 × ( ( 1.08)^(20) - 1) /0.08

= 50,000 × 45.7619643

= $2,288,098

The first option of an annuity is better because the amount is worth  $2,288,098 in today's cash which is higher than $500,000 offered by the second option.

The first option is greater than the second by $1,788,098.21 i.e

$2,288,098 - $500,000

7 0

2 years ago

The price of producing a $4 chocolate bar goes up, so the seller of the chocolate bar raises the price to $5. A student describe

lora16 [44]

This is incorrect (what the student is saying) obviously the quantity should be bigger to be worth the $5 dollars you are spending. But what it is saying is since a chocolate bar once sold for $4 is taking more money to produce they need to raise the price so that they earn money as well. If they are spending all the money that they earn from that $4 chocolate bar then they earn nothing and business goes down.

4 0

2 years ago