Answer:
(2) 4%
Explanation:
The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;
Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2
Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%
Solving for this we get the risk free investment at 4%.
Answer:
$60,000 income tax benefit
Explanation:
Since Crimson Corp. had a loss from operations and sold the asset for a loss we know that they lost money with the asset and an income tax benefit was generated. To calculate the income tax benefit we need to add both losses: $40,000 (operation) + $160,000 (sale) = $200,000 in total losses.
$200,000 x 30% = $60,000 income tax benefit
Answer:
a. equivalent annual cost.
Explanation:
In the case when the annuity payment stream on annually basis contains the similar present value as compared with the initial investment of the project so this we called as equivalent annual cost
It is term as equivalent to devlop a cash flow in a cash flows stream via project life
Therefore the option a is correct
And, the rest of the options are incorrect
Explanation:
This is :
This situation describes undue influence, which arises from a relationship in which one party can, through unfair persuasion, influence or overcome the free will of another. Other examples of such relationships include business partners, attorney-client, and doctor-patient. A contract entered into under undue influence lacks voluntary consent and is voidable. In this question, the influence of Evan over Nero is buttressed by Nero’s reliance on Mervyn for support. Nero does not have a claim for duress, but Mervyn’s influence over Nero’s investment decision is an exercise of undue influence. The contract is primarily for the benefit of Mervyn, and Mervyn used unfair persuasion in securing Nero’s funds. Nero can avoid the contract.
zero coupon bond equal to the future value of the face amount given a positive rate of return.
Bond with No Coupon Zero coupon bonds do not pay interest during the term of the bond. Rather, investors purchase zero coupon bonds at a significant discount to their face value, which is the amount the investor would get when the bond "matures" or comes due.
<h2>What is Zero coupon bonds?</h2>
A zero-coupon bond, also known as an accrual bond, is a debt security that does not pay interest but instead trades at a steep discount, yielding a profit when redeemed for its full-face value at maturity.
- A zero-coupon bond is a type of debt asset that does not pay interest.
- Zero-coupon bonds trade at steep discounts and pay full face value (par) at maturity.
- The difference between the purchase price and the par value of a zero-coupon bond represents the investor's return.
<h2>What is the difference between regular bonds and zero-coupon bonds?</h2>
Regular bonds, commonly known as coupon bonds, pay interest over the life of the bond and reimburse the principle when it matures. A zero-coupon bond, also known as an accrual bond, is a debt security that does not pay interest but instead trades at a steep discount, yielding a profit when redeemed for its full-face value at maturity.
Learn more about contrast between coupon rate and zero-coupon bonds at:
<u><em>brainly.com/question/21014163?referrer=searchResults</em></u>
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