Answer:
$177,114.99
Explanation:
The ending balance of the loan at the end of the 30th month after the monthly payment is the beginning balance at the beginning of the month plus the interest for the month minus the monthly payment.
Note that the interest expense for the month increases the loan balance while the monthly payment reduces the balance.
interest expense for 30th month=beginning balance*fixed interest rate/2
interest expense for 30th month=$177,391.93*4.375%/12
interest expense for 30th month=$646.74
monthly payment =$923.68
The ending balance of the loan=$177,391.93+$646.74-$923.68
The ending balance of the loan=$177,114.99
Answer: Clay Company
Explanation:
Based on the information given, the current, previous year and two previous years beforehand profit margins of Clay company are greater than the corresponding profit margins of Roak company.
This means that Clay company has a better profit margin and shows that they retain a higher percentage of their revenue after costs are taken out as opposed to Roak company.
Answer:
A lot of things can make a business unique since every entrepreneur has different ideas when starting a new business it depends on the persons approach to their business.
Answer:
The beta of the new project is 1.475
Explanation:
The beta is the measure of systematic or market risk associated to a stock. The beta is used in the calculation of the required/expected rate of return under the CAPM model. The CAPM model uses the following formula to calculate the required/expected rate of return,
r = rRF + Beta * (rM - rRF)
Plugging in the available variables, we can calculate the value of the beta.
0.154 = 0.036 + Beta * (0.116 - 0.036)
0.154 - 0.036 = Beta * 0.08
0.118 / 0.08 = Beta
Beta = 1.475
