Answer:
a ) Probability of default of debt over the time to maturity is 12.92%
(b ) Expected loss: $39.53
(C ) Present value of expected loss is $45.59
Explanation:
a ) Probability of default of debt over the time to maturity is 12.92%
(b ) Expected loss: $39.53
(C ) Present value of expected loss is $45.59.
Values calculated as shown in my detailed step by step answer at the attachment.
please kindly refer to attachment.
Answer:
$20,600
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of the asset.
Depreciation is a non-cash item in the income statement as the actual cash spent for the purchase of the asset would have been capitalized in the balance sheet.
Hence the total cash disbursements budgeted for operating expenses for the month of January would not include depreciation.
Total cash disbursements budgeted for operating expenses for the month of January
= $15,000 + $12,000 + (4% × $90,000)
= $15,000 + $12,000 + $3,600
= $20,600
Answer:
c. Balance of trade is equal to the sum of current account balance and financial account balance.
Explanation:
The balance of trade is the difference in value between a country's imports and its exports over time. Balance of trade ( BOT) is expressed in monetary terms. If a country has more exports than imports, it has a positive trade balance or a trade surplus. Balance of trade is also known as international trade balance or trade balance.
Economists use the balance of trade in determining the country's current account. A trade deficit or trade surplus on its own does not mean that the economy is weak or strong in that period. The balance of trade is obtained by subtracting net imports from net exports.
Answer:
a fear appeal
Explanation:
Fear appeal is the strategy that induces fear in an individual with the aim of preventing a particular behaviour.
Usually a risk is presented to person and the consequences of taking a particular action is highlighted.
Fear appeal emphasises the negative aspects of a situation to discourage the participants from acting a particular way.
It is an important tool in malong positive change in an individual's attitudes, intentions, and behaviours.
Answer:
Option D (The optimal........capital) would be the right choice.
Explanation:
- The optimal composition of capital would be the one with the lowest average capital structure.
- Such alternatives are meaningless since the optimal capital structure is not reflected by them. Maximizing earnings growth, interest burdens, or equity burdens would not enhance the worth including its shareholder.
