Answer:
9.62%
Explanation:
Re = Rf + (B x Rp)
Re = cost of equity = 9.775%
Rf = risk free rate = 4%
B = beta = 1.05
Rp = risk premium = ?
Rp = (Re - Rf) B = (9.775% - 4%)/1.05 = 5.5%
Re portfolio = Rf + {Rp x [(B₁ x $5/$5.5) + (B₂ x $0.5/$5.5)]}
Re portfolio = 4% + {5.5% x [(1.05 x $5/$5.5) + (0.75 x $0.5/$5.5)]}
Re portfolio = 4% + {5.5% x [0.9545 + 0.0682]}
Re portfolio = 4% + 5.6249% = 9.62%
Answer:
4) Student loan forgiveness given to teachers if they teach in high poverty areas.
Explanation:
A subsidy is assistance from to government to the private sector or another public sector that aims at promoting production in the specific sector of the economy. Subsidies are in the form of cash donations, tax concessions, government purchase policies, or assumption of risk. The objective of subsidies is to lower the cost of production, thereby reducing the market price of outputs.
The most common types of subsidies are in the agricultural and manufacturing sectors. In agriculture, the government often subsidizes production by giving cash incentives to farmers. The subsidies help reduce the cost of food. In manufacturing, the government offers export subsidies to businesses to support them in increasing exports.
Other types of subsidies include loan guarantees, loans at reduced interest rates, and tax waivers.
Answer:
C. property taxes
Explanation:
Along with the actual mortgage payment which the individual has to pay on a monthly basis to the lender, property taxes are the second monthly payment that are to be made alongside. However, it is a common practice for lenders to take a security deposit initially, and make these tax payments on behalf of the person who is taking the loan amount.
Answer:
The loss amount is "$3,000".
Explanation:
The given values are:
Sale amount,
= $16,000
Ice-cream equipment's cost,
= $90,000
Depreciation,
= $71,000
Now,
The book value will be:
= 
On substituting the values, we get
= 
= 
($)
The loss on the sale will be:
= 
= 
= 
($)
Answer:
The correct answer is letter "C": services usually are labor-intensive.
Explanation:
A labor-intensive industry requires large amounts of human labor to make its goods or services. In labor-intensive industries, labor costs are more important than capital costs. Technological advances have rendered fewer industries labor-intensive but many remain including <em>hospitality, agriculture, </em>and <em>mining industries</em>.
