Answer:
The answer is 8.55 percent
Explanation:
This is Capital Assets Pricing Model(CAPM) shows the relationship between undiversified risk(systemai risk) and the expected rate of return for shareholders. It is used to determine the cost of equity. This model is widely used in finance.
The formula is: Risk free rate of return + beta(market return - risk free rate of return ).
Note that risk free rate of return - market return is known as risk premium i.e the compensation for taking risk.
Risk free rate of return - 4 percent
market return - 11 percent
Beta - 0.65
4 + 0.65(11 - 4)
4 + 0.65(7)
4 + 4.55
=8.55 percent
Answer:
4.62%
Explanation:
Bethesda had an issue with preferred stock outstanding with a coupon rate of 4.20 %
It is sold at $90.86 per share
The par value is $100
Therefore the company's preferred stock can be calculated as follows
= 4.20/100 × 100 / 90.86/100 ×100
= 4.20/90.86
= 0.0462 × 100
= 4.62%
The student is very unrespectful in his writing
I would be sort of surprised from this email because it is written in a way where I most likely wouldn't be used to.
Based on the email, I would think this student is irresponsible and/or doesn't care enough about the work. He's only half committed to it.
Answer:
Cash flow to creditors in 2018 is −$85,000
Explanation:
2017 balance sheet of Kerber’s Tennis Shop, Inc is recorded as
Interest paid............................................................................$255,000
Less:
long-term debt in 2018.........................................................$2.21 million
Less: long-term debt brought forward from 2017..........$1.87 million
Total (taken as net new borrowing)...................................$340,000
Cash flow to creditors = 2018 Interest expense less net new borrowing
= $255,000 - $340,000
= −$85,000
