Answer:
Ans. The cost of equity capital is 6.5 (6.5%)
Explanation:
Hi, all we need to do is fill the following equation with the data from the problem.
Where:
rf = Risk free rate (in our case, 2%)
MRP = market risk premium (in our case, 6%)
r(e) = Cost of equity capital
Therefore, this is what we get.
So the cost of equity capital is 6.5% or 6.5 as the problem suggests to answer.
Best of luck.
Answer:
$7,126.78
Explanation:
First, find the present value of the annuity payments at the year Jordan retires.
You can do this question using a financial calculator using the following inputs;
Total duration; N = 35
Recurring payment ; PMT = 75,000
Required return; I/Y = 5%
Future value ; FV = 0 (note: use 0 for FV in this annuity if not given)
then CPT PV(at t=35) = 1,228,064.572
Next, to find the recurring annual payment , $1,228,064.572 would the goal that needs to be achieved hence the Future value at year 35.
FV = 1,228,064.572
N= 35
Interest rate before retirement; I/Y = 8%
PV = 0
then CPT PMT = 7,126.78
Therefore, she must deposit $7,126.78 per year.
America typically spends most of it's budget on Social Security, Unemployment, & Labor (not including military)
Options:
(A) participation bias
(B) Both selection and participation bias
(C) Selection bias only
(D) There is probably no source of bias in the study.
Answer:(C) Selection bias only
Explanation: Selection bias is a bias introduced during the selection process of a sample in such a way that the samples population does have or is not a proper representation of the entire population.
This type of bias is also known as SELECTION EFFECT.
Selection bias can also be described as the distortion of Statistical analysis due to the inappropriate sample collection process, if selection of sample is not adequately done,the conclusion or outcome of the study will be false.
Answer:
15lbs of gourmet coffee and 5lbs of cheap coffee.
Explanation:
To solve this problem, we will use the substitution method. Step by step explanation:
1. Defining the variables:
- G: For gourmet coffee
- C: For cheap coffee
2. Setting up the equations:
We need to find a combination of G and C that will result in 20 pounds worth $8.50 per lbs. As such, we have:
- G + C = 20lbs
- $9.00G + $7.00C = $8.50/lbs x 20lbs
3. Solving equation 1 for any of the variables. We will go with variable G:
4. Substituting variable G in equation 2 to find C:
5. Substituting variable C in equation 1 to find the value of G:
Then, we need <em>15lbs</em> of gourmet coffee and <em>5lbs</em> of cheap coffee to have <em>20lbs</em> of coffee worth <em>$8.50/lbs.</em>
