Answer:
I think it's a income tax
Answer:
number of periods = 8 years.
Explanation:
We know,
Future Value = Present value × 
Here,
Present value = PV = $2,500
Future value = FV = $3,500
Interest rate (Compounding) = 5% = 0.05
We have to determine how many years (Periods) it will take, n = ?
Putting the values into the above formula,
$3,500 = $2,500 × 
or,
= $3,500 ÷ $2,500
or, n log 1.05 = 1.4
or, n × 0.17609 = 1.4
or, n = 1.4 ÷ 0.17609
Therefore, number of years = 7.95 or 8 years.
Answer:
d. 1.753 pesos/krone
Explanation:
The computation of the received pesos for exchange is shown below
Received pesos = Exchange value of one U.S dollar for Mexican pesos ÷ Exchange value of one U.S dollar for Mexican pesos
= 10.875 ÷ 6.205
= 1.753 pesos/krone
It shows a relationship between the Exchange value of one U.S dollar for Mexican pesos and the Exchange value of one U.S dollar for Mexican pesos so that per pesos/krone can come
Risk evaluation involves rating the risks that may happen based on the likelihood of them happening. Risk evaluation also involves rating these potential happenings based on the impact they could have on the business. Evaluating risk is a step in the creative process of risk management.
Answer:
c. 8.40%
Explanation:
Use CAPM formula to solve this question;
CAPM r = risk free + beta(Market risk premium)
expected return ;r = 12.50% or 0.125 as a decimal
0.125 = 0.02 + 1.25 (MRP)
subtract 0.02 from both sides;
0.125 - 0.02 = 1.25MRP
0.105 = 1.25MRP
Divide both sides by 1.25 to solve for MRP
0.105/1.25 = MRP
0.084 = MRP
Market risk premium (MRP) is therefore 8.40%