Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
True,Because all contracts are signed under the terms and conditions apply such policies like utmost good faith were all information should be provided and should be true
Answer:
The correct answer is S corporation.
Explanation:
Carol and her friends are creating a new company that ships monthly subscription boxes filled with beauty products to customers.
Carol has multiple partners and she wants to avoid both double taxation and personal liability at the same time.
She also wants to pay the partners based on their company ownership percentage.
She can do all this by forming an S corporation.
A corporation is a business entity that is separate from its owners. The owners do not have personal liabilities for the debts of businesses.
An S corporation is a type of corporation which fulfills specific Internal Revenue Code requirements. It is a small business with 100 or less than 100 shareholders. It gives limited liability benefits to a corporation and is taxed as a partnership. It can also pass income directly to shareholders and avoid double taxation.
Answer:
$2,010
Explanation:
The future value of the savings account in 6 years can be computed using the below future value formula:
FV=PV*(1+r)^n
FV=unknown future amount
PV=current worth of the savings account=$1,200
r=annual interest rate=5%
n=number of years envisaged=6
FV=$1,500*(1+5%)^6
FV=$1,500*(1.05)^6
FV=$1,500*1.3400956
FV=$2,010
