Answer:
Required rate of return for the project = 9.7%
Explanation:
The risk-adjusted discount factor = cost of equity + the adjustment
Cost of equity can be calculated using the capital asset pricing model CAPM
Using the CAPM , the rate of return on equity can be determined as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 3.3%, Rm- 7.5%, β- 0.94
Cost of equity = Rf + β (Rm -Rf)
Cost of equity = 3.3% + 0.94×(7.5-3.3)= 7.248
The risk-adjusted discount factor= 7.248 + 2.5= 9.748
Required rate of return for the project = 9.7%
Answer:
Kim's total profits on the three stocks at the end of the first day of trading is $2157.80
Explanation:
The closing day valuation of stocks needs to be compared with the prices at the IPOs opened that same day to ascertain whether or not a profit has been made.
The purchase price of IPOs =(750+370+260)*$24
=$33,120.00
Closing day valuation=($23.15*750+$27.43*370+$29.87*260)
=$35,277.8
0
The total profit on the day's transactions=$35,277.8
0-$33,120.00
=$2157.8
The total profits on the three stocks on first day is $2157.8
0
Answer:
Dividend expense will be $20000
Explanation:
We have given share used = 12000 shares
And Treasury stock = 2000 shares
It is given a regular dividend of $2 per share
We have to find the dividend stock
Outstanding share = Share used - treasury stock = 12000 - 2000 = 10000 shares
So dividend expense = $2×10000 = $20000
So dividend expense will be $20000
Here is a present value equation which is a geometric sequence
i = monthly int rate
v = 1/(1+i)
20 yr loan (240 months)
<span>155,000 = P(v + v^2 + ...v^240)
</span>
15 yr loan (180 months)
<span>155,000 = P(v + v^2+ ...v^180)
</span>Use formula for sum of geometric series:
<span>Sn = v + v^2 + ...vn = <span><span>v(1−vn) / </span><span>1−v
</span></span></span><span>
Now you can find the monthly payments for each loan.
Multiply the payment by length of loan to get total payment, subtract loan amount to get total interest paid.
The answer would be </span><span>$40,013.40.</span>
Answer:
True
Explanation:
Marketing is all about branding, and the main purpose is used to attract more customers. It is considered as the main component because it directly affects the consumers and producers. Marketing is an effective way to increase sales because marketing persons directly communicate with customers. Sometimes marketing does not require an intermediate, and marketing person directly sale the products and services to the end-user.
