Answer:
Find a bondholder or purchaser.
Explanation:
A bond issuer is someone who borrows money, in this example, my company.
In order to being able to financiate the construction of a new manufacturing facility for my company, I would have to find a bondholder (or some ofthem) that would lend me all the money, with its pertinent clauses.
I would have to fill those clauses, perhaps its money returning timeline, some finantial records, etc.
Answer:
Portfolio A and Portfolio B
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
The Market rate of return - Risk-free rate of return) = Market risk premium
Let us assume the market risk premium be X
For Portfolio A:
21% = 8% + 1.3 × X
13% = 1.3 × X
So, the X = 10%
For Portfolio B:
17% = 8% + 0.7 × X
9% = 0.7 × X
So, the X = 12.86%
Based on the market risk premium calculations, we can conclude that Portfolio A should be in short position while Portfolio B should be in long position as portfolio B has higher market risk premium than B
Answer:
b. it expects that this will increase sales and profits
Explanation:
Answer:
61,198.47
Explanation:
First we solve for the present value of the note receivables at January 1st, 2021 As we are asked for the interest revenue on the 2021 incoem statment
Maturity $750,000.00
time 2.00
rate 0.10000
PV 619,834.7107
now, we calcualte the interest considering the 10% implicit interest
619,834.7107 x 0.10 = 61,198.47
This will be the interest revenu for the year 2021
