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3 years ago

“the dry cleaner on the corner is an eyesore.” this is a subjective claim because it

1 answer:

4 0

‘The dry cleaner on the corner is an eyesore’ is a subjective claim because a subject claim is not something that is factual rather it is an expression or an opinion that an individual says, in which the sentence is an example as it is an expression.

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Gilbert notices that his sausage is sliced into six pieces, whereas his brother's is sliced into nine pieces. he understands, ho

mrs_skeptik [129]

Gilbert’s understanding here showcases that his developmental stage, according to Jean Piaget, is at the concrete operational level.

Concrete operational is part of Piaget’s cognitive development stages, more specifically, the third stage which commonly occurs during age 7-11. It is characterized by the child’s capacity to reason and apply logical concepts – but only to physical objects.

6 0

3 years ago

Holding other factors constant, a stock portfolio has more volatility when its individual stock volatilities are ________ and i

Gwar [14]

Answer:

Holding other factors constant, a stock portfolio has more volatility when its individual stock volatilities are high and its individual stock returns have high correlations.

Explanation:

In Modern Portfolio Theory (MPT), the individual behavior of each investment is viewed and evaluated based on how it affects the overall portfolio's risk and return. For this particular case, all individual stock volatilities are high, which means the overall portfolio volatility is high as there is no diversification. Adding to that, having highly correlated stock return increases the volatility of the portfolio even more, as there is a higher chance of them all declining at once.

8 0

3 years ago

Projects A and B both require an initial investment of $100,000. Project A produces $200,000 in cash flows in the subsequent 5 y

Marysya12 [62]

Answer:

d. The NPV of project A will be more sensitive to changes in the cost of capital compared to the NPV of project B

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The sensitivity to cost of capital can he determined by calculating the npv using different cost of capitals.

Net present value can be calculated using a financial calculator.

For the first project:

Cash flow in year zero = -100,000

Cash flow each year from year one to five = 200,000

Npv when I is 8% = 698,542.01

Npv when I is 10% = 657,157.35

NPV when I is 12% = 620,955.2

For the second project:

Cash flow in year zero = -100,000

Cash flow in year one = 400,000

Cash flow in year two = 300,000

Cash flow in year three = 200,000

Cash flow in year four and five = 50,000

Npv when I is 8% = 757,119.12

Npv when I is 10% = 727,029.95

NPV when I is 12% = 698,804.32

The percentage change in the npvs of project A is greater than the percentage change in npv of project b when different cost of capitals are used. Thus, project A is more sensitive to cost of capital.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0

4 years ago

On january 1, applied technologies corporation (atc) issued $650,000 in bonds that mature in 10 years. the bonds have a stated i

nignag [31]

Answer:

Since the bond's coupon rate is identical to the market rate, then they should have been sold at face value. Since we are not given any costs associated to the issuance, then I will assume it is $0.

January 1, bond issuance:

Dr Cash 650,000

Cr Bonds payable 650,000

December 31, coupon payment:

Dr Interest expense - bonds 78,000

Cr Cash 78,000

8 0

3 years ago

Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4

Mademuasel [1]

Answer:

Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?

The nominal interest rate = 8.86%.

Explanation:

Average inflation premium = (4%+5%+4.5%+4.5%+4.5%+4.5%+4.5%)/7 = 31.5%/7 = 4.50%

Maturity risk premium for 7 year bond = 0.0006 * (7-1) = 0.36%

Nominal interest rate = real risk free rate + inflation premium + maturity risk premium = 4% + 4.50% + 0.36% = 8.86%.

Therefore, the nominal interest rate for the question given = 8.86%.

4 0

4 years ago