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andreyandreev [35.5K]
1 year ago
13

the market risk premium equals the question 37 options: risk-free rate of return plus the inflation rate market rate of return m

inus the risk-free rate of return inflation rate minus the risk-free rate of return risk-free rate of return plus the market rate of return risk-free rate of return multiplied by the market beta
Business
1 answer:
Novosadov [1.4K]1 year ago
6 0

The Market Risk Premium (MRP) is the difference between the market portfolio's expected return  and the risk-free rate.

<h3>What is market ?</h3>
  • A market is a place where buyers and sellers come together to facilitate the exchange and trading of goods and services.
  • A market place can be physical, like a retail store, or virtual, like an e-merchant.
  • Many of the other  examples include illegal markets, auction markets, and financial markets.
  • The structure of the economic market  can be divided into four categories: Perfect competition, monopoly competition, oligopoly,  monopoly.
  • Categories differ in the following characteristics: The number of producers is large in monopoly competition, few in oligopoly, and he is one in monopoly.
  • Markets matter. Markets are the mechanisms through which shares of a company  are bought and sold, providing companies with access to cash.
  • Markets are very important for pricing, liquidity transformation, and enabling businesses to meet customer needs.

To learn more about market from the given link :

brainly.com/question/25754149

#SPJ4

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Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 25 years to maturity that is
Snezhnost [94]

Answer:

Pretax    =  5.61%

After tax = 4.26%

Explanation:

The cost of debt will be the Yield to maturity of the bonds.

91 = present values of the 25 year annuity + present value of the maturity

There is no formula for exact YTM

we can either use excel or calculate by approximation:

In this case we will calcualte the YTM by aprroximation

YTM = 2\times (\frac{C + \frac{F-P}{n }}{\frac{F+P}{2}})

C= 25 cuopon payment 1,000 x 5% / 2 becayse paymenr are semiannually

F= 1000 the face value is 1,000

P= 910  the present value or market value is 91% of the face value

n= 50   25 year at 2 payment per year

YTM = 2 \times (\frac{25 + \frac{1000-910}{50 }}{\frac{1000+910}{2}})

dividend 26.8

divisor 955

YTM 5.6125654%

This will be the pretax cost of debt

then we calculate the after tax cost of debt

pre-tax cost of debt ( 1 - t ) = after-tax

5.61% ( 1 - .24 ) = 4,2636

6 0
3 years ago
Unhappy customers equal<br> Less Profit <br> More Profit
zhenek [66]

It equals less profit

3 0
3 years ago
A company issued 70 shares of $30 par value preferred stock for $4,000 cash. The journal entry to record the issuance is:______.
PtichkaEL [24]

Answer:

E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.

Explanation:

Journal Entry for Issuance of 70 shares of $30 par value preferred stock for $4,000 is -

Cash Debited -  $4,000

Paid in Capital in excess of Par value Credited -  $1,900

Preferred Stock (70 shares × $30 each) Credited - $2,100

The correct option is - E. Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value, Preferred Stock $1,900, credit Preferred Stock $2,100.

7 0
3 years ago
Suppose you win the lottery and have two options: A. Take $1 million now. B. Take $1.2 million to be paid out as 300,000 now and
laila [671]

Answer:

A. Take $1 million now.

Explanation:

A. If we take $1 million now the present value of the money is $1 million.

B. If we choose to take $1.2 million paid out over 3 years then present value will at 10% will be;

$300,000 + $300,000 / 1.2 + $300,000/ 1.44 + $300,000 / 1.728

$300,000 + $250,000 + $208,000+ $173,611 = $931,944

The present value of option B is less than present value of option A. We should select option A and take $1 million now.

4 0
3 years ago
Suppose social security contributions rise by​ $1 billion while social security benefits also rise by​ $1 billion.​ Further, per
Nadya [2.5K]

Answer:

The answer will be A

Explanation:

As the social security contributions and benefits remain the same in proportion, personal and national income will remain the same.

As disposable income is defined as personal income-personal taxes, and the personal income taxes fall by 500 million (included in the contibutions), this would mean that the disposable income increases.

8 0
3 years ago
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