Answer: The Maturity Risk Premium would be zero.
Explanation:
The Pure Expectations Theory believes that forward rates are just a representation of what people expect Future rates to be.
For this reason therefore, it believed that the Maturity Premium is Zero amongst Long Term Treasury Securities and that the difference in interest rates attached to Treasury bonds of different maturities is simply a result of what people perceive future interest rates to look like but as for Maturity Premiums, it doesn't exist in long term Treasury Securities.
Answer: $240000
Explanation:
Based on the information given in the question, Koosman's cash flows for financing activities in 2017 will be calculated as:
Sale of common stock = $250000
Less: Cash dividend paid = $10000
Cash flow from financing activities = $240000
Answer:
7.6%
Explanation:
The formula for calculating the Required return is:
Required return = Dividend yield + Capital Gain Yield
Hence,
13% = Dividend Yield + 5.40%
Dividend Yield = 7.60%.
Hope this helps.
Goodluck.
Answer:
I would reccomend finding a site like, "How to save money for college" or something.
Explanation:
Answer:
$4,870.5
Explanation:
Annual Depreciation Expense:
= [(Cost - Salvage Value) × Machine Usage in 2020] ÷ Total Estimated Working Hours
Depreciation Expense for 2020 (for 3 months only - October to December):
= [($115,900 - $13,900) × 1,910] ÷ (10,000) × (3/12)
= ($102,000 × 1,910) ÷ (10,000) × (1/4)
= $19,482 × (1/4)
= $4,870.5
Notes:
Depreciation will be calculated for only 3 months since the asset has been acquired on 1st October 2020.