Answer:
14.10%
Explanation:
The calculation of expected return on this stock is shown below:-
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.5% + 1.28 × (12% - 4.5%)
= 4.5% + 1.28 × 7.5%
= 4.5% + 9.6%
= 14.10%
The Market rate of return - Risk-free rate of return) is also called as the market risk premium
hence, the expected rate of return is 14.10%
The AICPA is required to adopt ethics standards that are at least as restrictive as the IESBA rules.
Answer: Option D
<u>Explanation:</u>
IESBA stands for the international ethics standards board for the accountants. As clear from the full form, this board performs the activities of setting up the ethics which the accountants need to follow while they are performing their work of making the accounts.
This body is not a national level but established at an international level. The other body which is the AICPA also needs to adopt the rules which are as restrive as the ethics of the IESBA.
Ordinarily, the automobile insurance includes<u> 4 basic features. </u>
The first one is the body bodily injury coverage - which covers the fee of medical expense, lost wags or pain, etc. which you may have to suffer from when you are injured in accident.
The second one is the property damage coverage. As in some situation, you may cause accident leading to damage of other vehicle or property. This feature of insurance would help you to pay for these expense to compensate.
The third feature is comprehensive coverage. This is optional in your insurance and it would cover the expense on repair in case of fire or natural disaster, theft, etc.
The last one is collision coverage, which support the fee of repair of vehicle due to the crash with other vehicle.
Answer:
2. 9 million
Explanation:
We know that
Unemployment rate = Number of unemployed workers ÷ Civilian labor force
6% = Number of unemployed workers ÷ 150 million
So, the number of unemployed workers would be
= 150 million × 6%
= 9 million
We simply applied the unemployed rate so that the number of unemployed workers could come
All other information given is of no significance. So, ignored it
The net present value of the proposed project is closest to -$80,822.
Since the project saves $80,000 in costs each year, we treat these savings income for the next 4 years. We then calculate the Present value Interest Factor of an annuity using the formula :
PVIF of an annuity = { [ 1 - [ (1+r)⁻ⁿ ] } ÷ r
PVIF of an annuity = { [ 1 - [ (1.09)⁻⁴ ] } ÷ 0.09
PVIF of an annuity = 3.240 (rounded to three decimals)
PV of the cost savings = (3.240*80000) = $2,59,178 (rounded to nearest $)
NPV = PV of cost savings - Value of investment
NPV = 2,59,178
- 3,40,000
