Answer:
The beta of the new project is 1.475
Explanation:
The beta is the measure of systematic or market risk associated to a stock. The beta is used in the calculation of the required/expected rate of return under the CAPM model. The CAPM model uses the following formula to calculate the required/expected rate of return,
r = rRF + Beta * (rM - rRF)
Plugging in the available variables, we can calculate the value of the beta.
0.154 = 0.036 + Beta * (0.116 - 0.036)
0.154 - 0.036 = Beta * 0.08
0.118 / 0.08 = Beta
Beta = 1.475
Answer:
focus on a client-server model
Explanation:
In this scenario, the best advice that can be given would be to focus on a client-server model. Since almost all of the applications that will be used by the employees are server-based it would be best to focus on only implementing the minimum necessary hardware for the 30 employees. So much so that they are able to access the server correctly but without adding excessive hardware power that would simply be overkill. Since the company already has all the necessary LAN switches it would be fairly simple to connect all of these machines together and 50 Mbps is more than enough for data transfer.
Answer:
The correct answer is A: interest= $21048
Explanation:
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. While each periodic payment is the same amount early in the schedule, the majority of each payment is interest; later in the schedule, the majority of each payment covers the loan's principal.
Each payment is the same ($49,148), but the proportions of interest and capital pay changes. The interest proportion decreases from pay to pay.
Loan= 186000
i= 15%
n= 6 years
First pay:
i=186000*0,15=27900
amortization= 49148-27900=21248
Second pay:
i=(186000-21248)*0,15=24712
amort=49148-24712=24436
Third pay:
i=(164752-24436)*0,15=21048
amort=49148-21048=28100
While payments progress, interest decreases and amortization increases.
Answer
Retained earnings at the beginning of Year 2 was: $1,450
Explanation
Revenue = $2,100
Retained Earnings Closing Balance = $1,850
Expenses = $1,150
Dividends = $550
Retained Earnings Closing Balance = Revenue - Expenses - Dividends + Retained Earning Beginning Balance
$1,850 = $2,100 - $1,150 - $550 + Retained Earning Beginning Balance
Retained Earning Beginning Balance = $1,450
Answer:
E. If Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used to evaluate the projects declined.
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
