Answer: 16.3%
Explanation:
Given the details in the question, the cost of preferred capital can be calculated using the CAPM method.
Cost of preferred stock using the Capital Asset Pricing Model is:
= Risk free rate + Beta * ( Market return - Risk free rate)
= 4% + 1.23 * (14% - 4%)
= 16.3%
C coverage because it’s money to pay for the accident etc.
For short term financial goals, it would be best to put the money in an investment that earns the highest interest while still remaining <em>liquid (</em>aka easy to withdraw your money when you want). In this case some good options would be a high-interest earning savings or money market account.
For short term goals you want to avoid investments that require you to tie your money up for long periods of time like bonds or certificates of deposit.
Answer:
$7,372.99
Explanation:
Discounting is the method used to determine the present worth of a future amount which compounding is used to determine the future worth of a present amount. The relationship between both is such that;
Fv = Pv(1 + r)^n
where
Fv = future amount
Pv = present amount
r = interest rate and
n = time
The future amount = $11,700
time = 6 years
rate = 8%
$11,700 = Pv(1 + 0.08)^6
Pv = $11,700(1 + 0.08)^-6
Pv = $7,372.99
You need to deposit $7,372.99 today to reach your $11,700 goal in 6 years.
Answer:
By $41,000 the next year's sales are derived from the side effects of adding the new product to its sales offerings.
Explanation:
For calculating the sale for next year, the tent expense and climbing gear is to be considered. With the help of these, the next year sale from the side effects can be derived. The sleeping bag cost is not to be considered so it would not be taken for calculation. The computation is shown below:
= (Tent Expense Next year + Climbing gear Next year ) - (Tent Expense Previous year + Climbing gear Previous year )
= ( $264,000 + $426,000) - ( $238,000 + $411,000)
= ($690,000 - $649,000)
= $41,000
Thus, by $41,000 the next year's sales are derived from the side effects of adding the new product to its sales offerings.
