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3 years ago

Credit risk measures using the structural model: assume a company has the following characteristics.

Business

1 answer:

Alexeev081 [22]3 years ago

4 0

Answer:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59

Explanation:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59.

Values calculated as shown in my detailed step by step answer at the attachment.

please kindly refer to attachment.

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What is the difference between an optimistic approach and a pessimistic approach to decision making under assumed uncertainty

Hitman42 [59]

Answer:

The optimistic approach examines the best possible outcome in a given situation and chooses the 'best of the best' while the pessimistic approach examines the worst possible outcome in a given situation and chooses the 'best of the worst'.

Explanation:

Decision making under assumed uncertainty is an approach that is taken when the outcomes of future events are not entirely known. The Hurwicz criterion provides a basis on which the pessimistic and optimistic outcomes can be balanced. This criterion allows the person who makes the decision to chose a coefficient of pessimism signified by alpha (α) and it is a decimal that is graded between 0 and 1. This number signifies the worst possible outcome whereas, the number (1-α) signifies the best outcome.

So, the optimistic approach examines the best possible outcome in a given situation and allows the decision-maker to choose the 'best of the best', while the pessimistic approach examines the worst possible outcome in a given situation and the decision-maker to choose the 'best of the worst'

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3 years ago

Culture is a system of values and norms shared among a group of people and that when taken together constitute a design for livi

Bas_tet [7]

Answer:

a. True

Explanation:

The above is true because culture constitute a way of life of people who share common value. Culture refers to the beliefs, values and norms among group of people. For instance, in some culture, the male when greeting lay flat on the ground, while the female knee; these actions symbolizes respect for the people whom they are greeting.

Examples of cultural beliefs includes but not limited to tradition beliefs, religion beliefs, social standards etc.

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3 years ago

kent company has a sales budget for next month of $800,000. cost of goods sold is expected to be 25 percent of sales. all goods

Stolb23 [73]

The final accounts payable for Kent Company will amount to $211,200

Accounts payable are commitments with a short term. These are typically sums owed to suppliers or vendors for outstanding sums for products or services purchased. On the balance sheet, accounts payable are listed as a line item under current liabilities.

Cost of Goods Sold = Sales * 25%

COGS= 800,000 * 25%

Therefore, the Cost of Goods Sold = $200,000

Purchases = Cost of Goods Sold + Ending Inventory - Beginning Inventory of Merchandise

Purchases = (200,000 + 51,200) - 40,000 = 251,200 - 40,000

Therefore, Purchases = $211,200

Ending Accounts Payable = Beginning Inventory + Purchases - Payments

Ending Accounts Payable = 128,000 + 211,200 - 128,000

Therefore, Ending Accounts Payable = $211,200

The initial accounts payable are paid in the month and used in the month prior.

To know more about Accounts Payable, refer to this link:

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1 year ago

Which of the accounts below would appear on an adjusted trial balance but probably would not appear on the trial balance? Group

Citrus2011 [14]

Answer:

Depreciation Expense

Explanation:

There are two sections consist of debit columns and credit columns in the trial balance. Moreover, the debit and the credit total are always equaled and matched

While the adjusted trial balance is the trial balance that is prepared after recording the adjusting entries

So, the depreciation expense should probably would not be appear as it is to be charged over the remaining life of the fixed asset

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3 years ago

A tax on gasoline that is applied at the point of purchase, like a sales tax, would likely cause an increase in the

Mademuasel [1]

The correct option is C. The consumer will have to pay more because the supply of gasoline will decrease, which would put upward pressure on the price.

<h3>What is Gasoline?</h3>

Gasoline, or petrol, is a transparent, volatile, flammable liquid hydrocarbon mixture used as a fuel, especially for internal combustion engines, and usually blended from several products of natural gas and petroleum.

Thus, the tax on gasoline at the point of purchase would increase the price consumers have to pay for gasoline.

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2 years ago