Answer:
7.90%
Explanation:
For this question, we use the Capital Asset Pricing Model formula that is presented below:
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
where,
The Market rate of return - Risk-free rate of return) is also known as the market risk premium
So, the expected market risk premium is
14.29% = 3.7% + 1.34 × expected market risk premium
10.59% = 1.34 × expected market risk premium
So, the expected market risk premium is 7.90%
Answer:
Option B
Present an overview of a longer report for people who may not have time to read the entire document.
Explanation:
An executive summary is a summary which contains the key points of a lengthy report, in a concise manner that can easily be digested by a reader without much effort.
The purpose of having an executive summary in a business report is to make it easy for your intended audience to get the key points of what your report is talking about in a quicker manner, rather than having to read the whole report.
Answer:
correct option is a. $11,750
Explanation:
given data
Revenue recognized = $19,000
Accounts receivable = 3,000
Expenses incurred = 7,250
Accounts payable = 750
Supplies purchased = 1,800
solution
we get here net income that is express as here
Net Income = Revenue recognized - Expenses incurred .........................1
put here value and we will get net income
Net Income = $19000 - $7250
Net Income = $11750
so here correct option is a. $11,750
Answer:
$6,800
Explanation:
Calculation for How much of a tax deduction will Kaye be able to deduct (assume 10% floor for deduction)
Tax deduction=$11,600-(10%*$48,000)
Tax deduction=$11,600-$4,800
Tax deduction=$6,800
Therefore the amount of tax deduction that Kaye will be able to deduct (assume 10% floor for deduction) is $6,800
Answer:
Antonio and Replacement of Golf Clubs
a. He should cash the CD and use the proceeds to finance part of the golf clubs.
b. The reason is that he would pay more in in-store financing totaling $37.06 per annum than the net interest he would generate from the CD totaling $23.18 per annum. And Antonio would incur a net loss of $13.88 if the CD was renewed unlike the $5.74 if the CD were not renewed.
Explanation:
Option 1: Renew Certificate of Deposit (CD):
Interest earned = $33.48 ($600 * 5.58%)
Taxes = 10.30 ($33.48 * 30.75%)
Net Income = $23.18
Cost of in-store financing = $37.06 ($710 * 5.22%)
Net Loss(overall) = $13.88 ($37.06 - $23.18)
Option 2:
Sale-off of CD = $600
Net financing required = $110 ($710 - $600)
Cost of financing = $5.74 ($110 * 5.22%)
