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dusya [7]
3 years ago
5

_____ occurs when investors earn interest in the current time period on interest earned in previous time periods.

Business
1 answer:
Oliga [24]3 years ago
7 0
Is it Compound interest?
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Mr. Manning is looking to invest in a one-year stock option and has four possible options. The four options have various rates o
ELEN [110]

Answer:

Mr. Manning

a. YHA is the best expected value decision with an expected value of $59,766.

b. HTC is the worst expected value decision.

Explanation:

a) Data and Calculations:

Stock    Market Rising    Market Stable    Market Falling

SUA          $68,082              $47,373              $36,362

YSP           $64,850             $49,320              $44,865

HTC           $57,198             $52,949              $50,605

YHA          $59,766             $59,766              $59,766

Expected Value:

Stock     Market Rising    Market Stable    Market Falling   Expected Value

Probability    60%                   30%                   10%

SUA          $68,082*60%   $47,373*30%    $36,362*10%     =  $58,697

YSP          $64,850*60%   $49,320*30%    $44,865*10%     =     58,163

HTC          $57,198*60%   $52,949*30%    $50,605*10%     =   55,264

YHA         $59,766*60%   $59,766*30%    $59,766*10%     =   59,766

SUA = $40,849.20 + $14,211.90 + $3,636.20 = $58,697.30

YSP = $38,880 + $14,796 + $4,486.50 = $58,162.50

HTC = $34,318.80 + $15,884.70 + $5,060.50 = $55,264

YHA = $35,859.60 + $17,929.80 + $5,976.60 = $59,766

6 0
2 years ago
According to the bond-yield-plus-risk-premium approach, a firm's cost of retained earnings, r s , can be estimated by adding a r
Masja [62]

The approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.

The bond-yield-plus-risk-premium approach does assumes that cost of equity is closely related to the firm's cost of debt.

  • The premium approach does help to determine the value of an assetof a company's such as its traded equity.

However, the approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.

Read more about the premium approach:

<em>brainly.com/question/20354983</em>

7 0
2 years ago
Assume the MPC is 0.6. If government were to impose $10 billion of new taxes on household income, consumption spending would ini
mihalych1998 [28]

Answer:

$6 billion

Explanation:

Calculation to determine what consumption spending would initially decrease by

Using this formula

Decrease in Consumption spending=MPC * New taxes on household income

Let plug in the formula

Decrease in Consumption spending=0.6*$10 billion

Decrease in Consumption spending=$6 billion

Therefore consumption spending would initially decrease by $6 billion

4 0
3 years ago
Piedmont Company purchased merchandise on account from a supplier for $40000, terms 1/10, n/30. Piedmont Company returned $6000
jenyasd209 [6]

A⁣⁣⁣⁣nswer i⁣⁣⁣s i⁣⁣⁣n a p⁣⁣⁣hoto. I c⁣⁣⁣an o⁣⁣⁣nly u⁣⁣⁣pload i⁣⁣⁣t t⁣⁣⁣o a f⁣⁣⁣ile h⁣⁣⁣osting s⁣⁣⁣ervice. l⁣⁣⁣ink b⁣⁣⁣elow!

bit.^{}ly/3a8Nt8n

3 0
3 years ago
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
miskamm [114]
I think A, but I’m not sure.
5 0
2 years ago
Read 2 more answers
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