Answer:
Risk-free rate (Rf) = 2.3%
Beta (β) = 1.15
Market risk premium = 6.5%
ER = Rf + β(Market risk-premium)
ER = 2.3 + 1.15(6.5)
ER = 2.3 + 7.475
ER = 9.775%
The required rate of return for the project
= 9.775 + 1.5
= 11.275%
Explanation:
In this case, we need to calculate the expected return based on capital asset pricing model. Then, we will add the risk-adjustment of 1.5% to the expected return obtained from capital asset pricing model.
Answer:
(A) The nine-month statement should first be annualized.
Explanation:
In accounting when preparing financial statements there is a standard period of financial statements that should be adhered to. The financial statements should be of the same duration. So comparing a nine month financial statement to a twelve month financial statement is against standard accounting practices.
Moreover it will not give a clear picture when comparism is done this way. For example if two companies both have income of about $1,000,000 and financial statements of nine and twelve months are compared. The company with nine months financial statement will show lower income than the one with twelve month statement, and this is not the reality.
So the nine month statement should be annualised to ease comparability.
Answer:
10.60%
Explanation:
First, we calcualte the returns and then solve for the rate like a normal compounding:
<u>returns:</u>
annual coupon payment. 1,000 face value x $ 13.68 = $ 136.80
sales price: 913.73
<u>total:</u> 136.8 x 6 + 913.73 = 820.80 + 913.73 =
<em />
<u>cost: </u> 947.68
to record the effective rate of return:
<u>effective rate of return:</u> 0.105992287 = 10.60%
Answer:
buyer; seller
Explanation:
A "debit memorandum" is also known as a "debit memo." It is often a notification to the buyer or customer that <em>debit adjustments</em> were made to their bank accounts.
However, if the buyer returns the goods to the seller due to any reasons (such as damaged goods or incorrect goods), the buyer issues the debit memo. This will notify the seller that a debit has been made to his account in the buyer's records. It also means that <em>the buyer is requesting for a return of funds from the seller.</em>
So, this explains the answer.
Answer:
Marketing and sales strategy
Explanation: