Answer:
I didn't understand your question.
A company will pay interest based on its credit rating and the length of time over repayment is scheduled to occur (1-year, 5- years, or 10 years).
<h3>How is interest decided?</h3>
- It is based on various risks such as credit risk and maturity risk.
- Credit risk of a company is shown in its credit rating.
- The maturity risk increases as the length of time to repayment increases.
The interest paid will therefore be dependent on the credit rating of the company and the term of the loan that it took out as these show different types of risk.
In conclusion, option A is correct.
Find out more on maturity risk at brainly.com/question/24780094.
Answer:
The answer is:
* Expected return on the market: 2.74%
* Risk-free rate: 11.45%
Explanation:
Denote Rm is expected return on the market and Rf is risk-free rate. We have:
* For stock Pete: 14.5% = Rf + 1.35 x ( Rm - Rf) and
* For stock Repete: 11.8% = Rf + 1.04 x (Rm-Rf)
From the two equations above, we have: 0.31 * (Rm- Rf) = 2.7% <=> Rm - Rf = 8.71%;
So we have: 14.5% = Rf + 1.35 * 8.71% <=> Rf = 2.74%;
=> Rm = 2.7% + Rf = 8.71% + 2.74% = 11.45%.
So, Rf = 2.74%; Rm = 11.45%.
The purpose of a business pitch is not to close a deal but to grab interest. It's kind of like a hook in an English paper.
The perfectly competitive firm charges a price equal to marginal cost
monopolistic competitor firm charges a price greater than marginal cost.
