<span>The fact that Ramon funds small businesses that he believes have the potential to grow large and when these companies are still in their initial stages and need investment, he buys their stocks at a low price and later sells them at higher prices when they are successful means that Ramon is a venture capitalist. The term venture capitalist in economics describes a person who i</span>nvests in a business venture, providing capital for start-up or expansion.
Answer:
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Explanation:
Answer:
Principal
Explanation:
A power of attorney (POA) is a legal document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal).
Answer:
A) Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
The following table shows the accounts receivable turnover ratio of MCB and ABI:
Particulars MCB ABI
Net sales $8320 $17400
Average Accounts Receivable $720 $900
Accounts Receivable Turnover rate 11.5 19.3
B)
Day's sale outstanding = Accounts receivable / Total credit sales × 365
The following table shows the days sale outstanding of MCB and ABI:
Particulars MCB ABI
Net sales $8,320 $17,400
Average Accounts Receivable $720 $900
Day's sale outstanding 31.58 18.88
Explanation:
Answer:
c. 11.05%
Explanation:
The computation of firm's required return is shown below:-
First we need to find out the Market Risk Premium for computing the firm's required return.
Using CAPM, we calculate Market Risk Premium
Expected Future Market Rate of Return = Risk Free Rate on T-Bond + Beta of the Market × Market Risk Premium
10% = 6.5% + 1 × Market Risk Premium
Market Risk Premium = (10% - 6.5%) ÷ 1
= 3.5%
Required Rate of Return = Risk Free Rate + Beta of the Stock × Market Risk Premium
= 6.5% + (1 + 3.00%) × 3.5%
= 6.5% + 1.30 × 3.5%
= 11.05%