Answer:
$12,500
Explanation:
Budgeted cash receipts refer to the money that the company expects to receive in a specific period of time.
Budgeted cash disbursements are the payments that the company expects to make in a specific period of time.
$19,500+190,500-191,000= 19,000
Then, you have to subtract 19,000 from 31,500 to determine the amount that the company needs to attain its desired ending cash balance:
31,500-19,000= 12,500
According to this, the company should borrow $12,500.
Answer:
13%
Explanation:
As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
11% = 7% + Beta × 6%
Beta = 1
now If the market risk premium increased to 6% so,
The required rate of return = 7% + 1 × 6%
= 13%
Therefore for computing the required rate of return we simply applied the above formula.
Answer: PRIVACY. 100% postive
Explanation:
The potential risk that the investors may face when this is made use is that the issuer may not be able to make profit when the bonds are considered to offer as a guaranteed return because they are honored by law and with that, this will cause the value of the bond to be lowered when exposed in the market in which the return will also be lower when return to the investors.
