Answer:
the cost of equity capital as per CAPM is 14.71%
Explanation:
The computation of the cost of equity capital as per CAPM is shown below:
As we know that
= Risk free rate of return + beta × (market rate of return - risk free rate of return)
= 5.7% + 1.7 × (11% - 5.7%)
= 5.7%+ 1.7 × 5.3%
= 5.7% + 9.01%
= 14.71%
hence, the cost of equity capital as per CAPM is 14.71%
The same is relevant
Explanation:
The adjusting entry is as follows
Accrued interest expense Dr $124
To Interest payable $124
(Being the accrued interest expense is recorded)
The computation is shown below:
= Borrowed amount × interest rate × given months ÷ total number of months in a year
= $6,200 × 12% × 2 months ÷ 12 months
= $124
Answer: In a common size statement each item is expressed as a percentage of some common base.
Explanation:
have a nice day!
The bond can be called at par in one year or anytime thereafter on a coupon payment date. Ithas a price of $97 per $100 face value
<h3>What is
bond?</h3>
A bond is a type of financial security in which the issuer owes the holder a debt and is obligated to repay the principal of the bond as well as interest over a specified period of time, depending on the terms. Interest is usually paid at regular intervals.
Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a corporation. The investor agrees to give the corporation a specific sum of money for a set period of time. In exchange, the investor receives interest payments on a regular basis.
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