Answer:
B. the par value of all capital stock issued
Explanation:
The legal capital is best defined as the par value of all capital stock issued
The positive impacts are:
- The corporation provided job opportunities for the citizens of south Afirca
- The corporation provided the people with good products that will enhance their lives,
- Corporations tend to provide the largest amount of Tax, which later could be distributed by the government in the form of welfare
Answer:
The correct answer is letter "A": the rate of return on funds invested in the center.
Explanation:
The Rate of Return or RoR is the earnings an asset generates more than its initial cost. The amount is usually expressed in an annualized percentage rate. The RoR is calculated based on the cash flows generated by the asset. Besides, it can include a capital gain element. The RoR is helpful to find out if the performance of the investment manager was appropriate or not.
Answer: 38.77%
Explanation: the IRR is a discount rate that equates the present value of after tax cash flow to the capital amount invested.
Using the financial calculator:
Cash flow for year 0 = -7.99
Cash flow for year 1 = 4.95
Cash flow for year 2= 4.95
Cash flow for year 3= 4.95
IRR = 38.77%
I hope my answer helps.
Answer: I, II, III, IV
Explanation:
CAPM is used for pricing of risky securities and also for the generation of expected returns for an asset given the risk involved with regards the assets and the cost of capital
In a simple CAPM world, the correct statements are:
I. All investors will choose to hold the market portfolio, which includes all risky assets in the world
II. Investors' complete portfolio will vary depending on their risk aversion
III. The return per unit of risk will be identical for all individual assets
IV. The market portfolio will be on the efficient frontier and it will be the optimal risky portfolio
Therefore, I, II, III, IV is the best option.