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vlabodo [156]
3 years ago
9

When estimating the cost of equity by use of the bond-yield-plus-risk-premium method, we can generally get a good idea of the in

terest rate on new long-term debt, but we cannot be sure that the risk premium we add is appropriate. This problem leaves us unsure of the true value of rs.
True
False
Business
1 answer:
diamong [38]3 years ago
6 0

Answer: True

Explanation: <em> Bond-yield-plus-risk-premium method is used if the entity has publicly listed debt, shapes the bond return. This is therefore effective interest on a organization's long-term debt. </em>

<em>Here equity risk premium approximation can be extremely imprecise,  also fluctuating disorderly, depending on which framework is used.</em>

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An older person nearing retirement might typically find it better to invest in ________ since they generally seek less risk with
Helga [31]

The answer to this question is bonds. Bonds are an investment type where in investors’ gains a fixed-income over their investments. Bonds are less risky because the return of investment is in a fixed rate and this is less vulnerable to price swings in the stock market. 

5 0
3 years ago
Trek Company has the following production data for April: units transferred out 40,200, and ending work in process 6,220 units t
Kitty [74]

Answer:

the costs to be assigned to the units transferred out and the units in ending work in process is $562,800 and $49,760 respectively

Explanation:

The computation is shown below:

Cost assign to units transferred out is

= 40,200 units × $4 + 40,200  units ×  $10

= $160,800 + $402,000

= $562,800

And, the Cost assign to work in progress is

= 6,220  units × $4 + (6,220 units × 0.40) × $10

= $24,880 + $24,880

= $49,760

Hence, the costs to be assigned to the units transferred out and the units in ending work in process is $562,800 and $49,760 respectively

5 0
3 years ago
Economists consider governments to be "wasteful:" - whenever they over- or underallocate resources to a project. - only when the
ahrayia [7]

Answer:

The correct answer is: whenever they over- or under-allocate resources to a project.

Explanation:

A government is considered to be wasteful by the economists if it over-allocates or under-allocates resources on a project. Whenever resources are not efficiently or optimally allocated it is considered wasteful.

In case resources are over-allocated, the reason is given that the excess resources could have been used somewhere else.

In case resources are under-allocated, the reason is given that the given resources will not be able to provide the desired output.

3 0
3 years ago
Which is the correct sequence for recording transactions and preparing financial​ statements?
zheka24 [161]

Answer:

The answer is B.

Explanation:

The first is the journal. A journal entry may be a summary of the debits and credits of the transaction entry to the journal.

Followed by a ledger which may be a book containing accounts during which the classified and summarized information from the journals is posted as debits and credits.

Trial balance which is that the listing of all accounts (asset, liability, equity, revenue, expense) with the ending account balance or or its a report that lists the balances of all book accounts of a corporation at a specific point in time.

And lastly the financial statements. they're written records of a business's financial situation

8 0
3 years ago
JB Enterprises has $2.5 million of current assets and $1.5 million of current liabilities. Therefore, their current ratio is 1.6
MrRa [10]
It would be a 2.5 ratio
3 0
3 years ago
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