Answer:
B. 16.50%
Explanation:
We know,
according to Capital Asset Pricing Model (CAPM), the expected return, E(r) = risk-free rate + (expected return on the market - risk-free rate) × beta
Given,
Risk-free rate = 2.50%
Expected return on the market = 9.5%
Beta = 2 (We know market beta is 1. As Metz Industries stock twice as risky as the market on average, the beta of the company is 1×2 = 2.)
Putting the values in to the formula, we can get,
The expected return, E(r) = 2.50% + (9.5%- 2.50%) × 2
E(r) = 2.50% + 7% × 2
E(r) = 2.50% + 14%
E(r) = 16.5%
Therefore, the option B is the answer.
Answer:
Complete question is attached in form of image.
a). Maximum amount of charitable deduction for Cash Contrbutions = 7650 + 5450
= $ 13100
a). Maximum amount of charitable deduction for Property Donations
= 15250 + 18375
= $ 33625
The amount of deduction for contribution to American Heart Association will be the amount equal to the cost of antique painting given to the american heart association.
The amount of deduction for contribution to First Methodist Church will be the amount equal to the FMV of Coca-Cola stock given to the first methodist church.
FMV stands for Fair market value.
Maximum amount of charitable deduction for Cash contribution = $ 13100 and Maximum amount of charitable deduction for Property donation = $ 33625.
Answer:
$100,000
Explanation:
According to the internal revenue service ''<u>In most situations, the basis of an asset is its cost to you.</u> <u>The cost is the amount you pay for it in cash</u>, debt obligations, and other property or services. Cost includes sales tax and other <u>expenses connected with the purchase</u>.''
Therefore Sebastian's basis in these two assets is unconnected with the fair market value of the assets but with the cost.
Purchased Equipment is always recorded at its acquisition cost or its net book value, that is after deducting the accumulated depreciation
. In the scenario we have no depreciation figures, hence the basis is the cost of $100,000
The way where the credit is not improved is that if we moving the debt around.
Information related to the credit score & creditworthiness:
- The credit score is the mathematical expression that depends upon your creditworthiness.
- Creditworthiness is the willingness of the lender for believing you to pay off the debts.
The credit should be improved by:
- Having established accounts.
- Bills are paid on time
- Less balances.
But if the debt is moving around so this does not improve your credit.
Therefore we can conclude that the way where the credit is not improved is that if we moving the debt around.
Learn more about creditworthiness here: brainly.com/question/2254218
Answer:
The correct answer is contractual institutions.
Explanation:
Contract savings institutions are those that include provident funds, life insurance companies, private-sector pension funds, and social insurance systems. These companies have long-term liabilities and stable cash flows. For these reasons is that they are the ideal providers of long-term financing, both for government, industry, municipal entities and the housing sector.
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