Answer:
The answer is 14.87%
Explanation:
Solution
Given that:
A large company stock had an average return of =12.59%
The average risk free rate = 2.58%
A small company stocks average is =17.45
The next step is to find the risk premium on small-company stocks for this period
Thus,
The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate
So,
Risk premium on small-company stocks = .1745 - 0.258
=0.1487
Therefore the risk premium on small company stocks for the period was 14.87%
Answer: Purchases assets at a cost of $15,000 (000)
Explanation:
Out of the 4 options presented, 2 involves cash coming into the company which are; Sells $5,000 (000) of their Long-term assets and Liquidates the entire inventory. As these 2 bring cash into the company, they will not make Baldwin need an emergency loan.
The other 2 however, take money from the company being; Retires $20,000 (000) in long-term debt and Purchases assets at a cost of $15,000 (000). Retirement of long-term debt will have been in the budget for a long time so there would be no need for <em>emergency</em> funding.
The Purchase of the assets on the other hand has a less chance of being budgeted for than the long term debt retirement and being such a significant outflow, could expose Baldwin to the risk of needing to seek emergency loans.
In a 401k the employer usually matches a percentage and if you are lucky dollar for dollar, where in an IRA it is does an an extra option with a set amount of money usually 2500 or more for each IRA contribution.
Answer:
c.
Explanation:
Based on the information provided within the question it can be said that the exception of the answers provided are seasonal cash requirements. This refers to the amount of cash you or the company needs to pay for unique expenses during a specific season. Which is not a factor when deciding what should be invested in marketable securities.
Answer: Participation strategy
Explanation: Participation strategy refers to the strategy in which the management tries to make all the individuals in a group to collectively work for the accomplishment of a goal. It refers to associate the workers in an objective to give them a sense of superiority and belongingness towards that goal.
In the given case, Gilbert is trying to make the employees to fell the awareness towards the project by taking their ideas ans suggestions into consideration.
Hence from the above we can conclude that the correct option is E.
