1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Savatey [412]
4 years ago
12

You have $500,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on the risky portfoli

o is 16%. If you wish to earn a 22% return, you should?
Business
1 answer:
malfutka [58]4 years ago
6 0

Answer:

d.borrow $375,000

Explanation:

Given that

Amount available to invest = $500,000

Risk free rate = 8%

Return on the risky portfolio = 16%

Now the computation is shown below:

The interest rate should be

Interest amount on borrowings = $375,000 × 8% = $30,000

So, the total amount available to invest is

= $500,000 + $375,000

= $875,000

Now the total inflow is

= $140,000 - $30,000

= $110,000

The $140,000 is come from

= $875,000 × 16%

So the 22% is come from

= $110,000 ÷ $500,000

You might be interested in
XYZ Corp is doing a study of consumers' use of soap across the US. The questiuonnaire for the sttudy will include questions abou
serious [3.7K]

Answer:

Such a study is best characterized as a non-experimental study.

Explanation:

Non-experimental research is the study whereby a researcher cannot manipulate, control, or change the subjects of a research but instead, the researcher depends on observation, interpretation, or interactions to arrive at a conclusion. This means that in a non-experimental study, the researcher relies on surveys, correlations or case studies.

Non-experimental research has a great level of external validity because it is usually generalized to a bigger population. XYZ Corp making use of a survey is an example of non-experimental study.

8 0
3 years ago
During the meeting Malcolm constantly reminds the rest of the team that he is in charge of this project, and it must be carried
KengaRu [80]

Answer:

The correct answer is b) Coercive

Explanation:

The term Coercive refers to the use of force or power to influence someone, sometimes, through punishments. The government uses coercive power through the army to regulate a nation according to the norms and policies of the country. Malcolm is using coercive to make sure and show to the team that the project is handling by him.

6 0
3 years ago
Read 2 more answers
Dolan Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $31000
cupoosta [38]

Answer:

Cost Of Goods Sold= $1,930,000

Explanation:

Giving the following information:

Beginning Finished goods inventory 190000

Ending Finished goods inventory 150000

Cost of goods manufactured for 2020 amounted to $1890000

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 190,000 + 1,890,000 - 150,000= $1,930,000

5 0
3 years ago
Theme Park Thrillers has plans to build a new $175 million theme park and intends to finance this project through the sale of ad
nikitadnepr [17]

Answer:

The correct option is option 3,equity financing

Explanation:

Equity financing is a form of company financing means through which required funding is raised through the sale of shares to current or would be investors.

When shares are issued  exclusively to existing shareholders it is known as rights issue.

Besides,when the company issues shares to the public for the first time,it is termed initial public offer(IPO),as the name implies the first time the company is raising equity funding from the stock market.

7 0
4 years ago
A business firm will purchase additional capital goods if the real rate of interest in the economy is less than the expected rat
Alchen [17]

Answer:

True

Explanation:

The real rate of interest = Nominal rate - Inflation.

Since the actual market rate is real rate at which the goods can be borrowed or purchased, if the expected return on assets is higher than that of the real rate the capital assets shall be brought as, in this case the revenue will be higher than the normal rate, because revenue = Expected rate of return

Real rate = Cost of borrowing and acquiring

thus there will be profit.

The statement is True

6 0
4 years ago
Other questions:
  • ______ studies reveal that visionary and inspirational charismatic leaders who are good team builders generally are most effect
    12·1 answer
  • My Work Ramon works for a large company that is considering starting a new business unit to sell personalized coffee mugs. He ha
    5·1 answer
  • Wickland company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $108,000.
    6·1 answer
  • Diversification analysis and business portfolio analysis help managers develop ________ strategies and make resource allocation
    11·1 answer
  • Economic resources are the natural, human, and technological inputs used to produce goods and services. natural, technological,
    10·1 answer
  • HELP ASAP! GIVING BRAINLIEST<br><br> Your policy says you have 50/100/30 coverage.
    14·2 answers
  • A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
    10·1 answer
  • What are benefits of using OneDrive to store presentations? Check all that apply. It has syncing capabilities. It is affordable
    5·2 answers
  • The two major characteristics that differentiate mobile computing from other forms of computing are _________ and _________.
    15·1 answer
  • Indexation refers to a process of adjusting the nominal interest rate so that it is equal to the real interest rate. O using a l
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!