Answer:
Stewart will probably have to accept a higher level of risk
.
Explanation:
Hence, a large-risk investment is one in which the risks of failure, or of losing some or all of the asset, are greater than the average.
- These opportunities often offer investors the ability for greater returns in exchange for embracing the degree of risk associated with that.
- In saving account he gets 3% rate of return but also gets a lower rate of risk and does not earn much.
If he invests his money in higher-risk fields like shares, he may get a higher profit.
Answer:
Ke = Rf + β(Rm – Rf)
Ke = 4.5 + 1.20(12-4.5)
Ke = 4.5 + 9
Ke = 13.5%
Explanation:
Cost of equity is equal to risk-free rate plus market risk premium. Market risk premium is beta multiplied by risk premium. Risk premium is market return minus risk-free rate.
Answer:
The correct answer of this question is b-200$.
Explanation:
As per tax schedule if income from capital gain is less than 39,375$ 0% tax is charge lieved.
So on his income from capital gain that is 34,000 dollars no tax will be charge. However the remaining income is subject to income tax that is (36000-34000)= 2000 dollars. So Cason is liable to pay tax equals to 200$. (2000*10%)
As per tax law whose income is less than 9,750 dolars is liable to pay tax at the rate of 10%.
Answer: a)
Explanation: All the others are deductible, whilst excise taxes are only deductible as a business expense.
