Answer:
b-The required return on Stock A will increase by less than the increase in the market risk premium, while the required return on Stock C will increase by more than the increase in the market risk premium.
Explanation:
Beta reflects the risk associated, as the beta is low, the expected risk is also low, accordingly return expected is also keeping all things constant.
When Beta is less than 1 it means the returns will be lower than market, accordingly for Stock A the return will increase but slower than the market risk.
Whereas, the Beta is more than 1 of Stock B and accordingly the risk is more but return will grow even faster as the risk volatility is high than the market risk.
Is better to pay in full the credit bill so that when you need to help in the long run you can be able to pay and halfway payments
The maximum amount of interest payable that may be included on the balance sheet of the debt service fund of sue city on June 30 would be 150k.
the maximum amount of interest payable on the balance sheet = 5000000×6%/2 = 150000
In finance and economics, interest is payment from a borrower or deposit-taking economic group to a lender or depositor of a quantity above compensation of the major sum (this is, the amount borrowed), at a particular rate. it's miles awesome from a charge that the borrower may additionally pay the lender or some 0.33 celebration. it is also wonderful from a dividend that is paid with the aid of an enterprise to its shareholders (proprietors) from its income or reserve, but no longer at a selected price decided beforehand, alternatively on a pro-rata foundation as a percentage within the praise gained through hazard taking marketers whilst the sales earned exceeds the whole fees.
As an example, a patron might generally pay interest to borrow from a financial institution, so they pay the financial institution a quantity that is more than the amount they borrowed, or a customer can also earn interest on their savings, and so they'll withdraw greater than they at first deposited. In the case of financial savings, the customer is the lender, and the financial institution performs the role of the borrower.
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Answer:
To solve this problem, first let us calculate for the total cost:
Total cost = Capital cost + Cost of capital
Total cost = $ 20 M + 0.10* $ 20 M
Total cost = $ 22 M
The breakeven point would be the price in which the total earnings is equal to the total cost. Therefore:
$ 15M + 20,000 * X = $ 22 M
Where X is the breakeven price in dollars per room per night
Calculating for X:
20,000 * X = $ 7 M
X = $ 350
Therefore the break even price is $ 350 per room per night.
Explanation:
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Entrepreneurs and other producers accept risks because they hope to earn Profits
