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Zigmanuir [339]
3 years ago
5

A risk premium A. is the minimum amount a decisionminusmaker would pay to avoid taking a risk. B. is the maximum amount a decisi

onminusmaker would pay to avoid taking a risk. C. is required to get a riskminusneutral person to make a fair bet. D. is the maximum amount needed to compensate a decisionminusmaker to willingly take a risk.
Business
1 answer:
photoshop1234 [79]3 years ago
7 0

Answer:

D

Explanation:

The risk premium is the difference in interest rate between two parties. It can also be defined as the overprice that a country pays to be financed by markets, in comparison with other country. The risk premium is popular in the bonds market. For example, country A has bond interest rate of 4% and country B has bond interest rate of 6%, the risk premium is the difference between both interest rates: 2%. We can conclude that country B is riskier than country A because it offers a reward to investors (2% more) to acquire their debt.

According to this, the risk premium is the maximum amount that a decision maker needs to compensate risk. The risk premium is defined by how risky a country is. (I would say that it is the minimum amount needed to compensate risk, but this is the answer that better fits with the risk premium definition).

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Andersen's Nursery has sales of $318,400, costs of $199,400, depreciation expense of $28,600, interest expense of $1,100, and a
podryga [215]

Answer:

e. $42,438

Explanation:

The computation of the retained earning is shown below:

Earning after tax = Sales - cost - depreciation expense - interest expense - income tax expense

= $318,400 - $199,400 - $28,600 - $1,100 - $30362

= $58,938

The income tax expense equal to

= (Sales - cost - depreciation expense - interest expense) × tax rate

= ($318,400 - $199,400 - $28,600 - $1,100) × 0.34

= $30362

Now the retained earning equal to

= Earning after tax - dividend paid

= $58,938 - $16,500

= $42,438

7 0
3 years ago
When you use the AIDA persuasive approach, your first task is to gain the reader's attention (A).
Elanso [62]

Answer:

The correct answer is letter "A": Describe the benefits a product or service offers and make rational or emotional appeals.

Explanation:

The AIDA Model describes the process buyers go through at the moment of purchasing. It has four (4) steps: <em>Awareness, Interest, Desire, </em>and<em> Action</em>. In the Interest stage, companies attract consumers so they start looking for information about their products. <em>The benefits of the good are portrayed relating them to the target audience's emotional appeals. In some other cases, firms display their products as the most rational to choose from compared to competitors.</em>

7 0
3 years ago
Sparks Corporation has 3,000 shares of 8%, $100 par value preferred stock outstanding at December 31, 2017. At December 31, 2017
Korvikt [17]

Answer:

We can assume that Sparks Corporation is going to pay preferred stockholders first:

preferred stock dividends = $100 x 8% x 3,000 = $24,000

If the corporation doesn't owe any previous dividends to preferred stockholders, then the remaining $81,000 (= $105,000 - $24,000) should be distributed to common stockholders.

Each preferred stock will receive a $8 dividend. I don't know the amount of outstanding common stock, so it is not possible to determine how much dividend will be distributed for each common stock outstanding.

7 0
3 years ago
What’s the manager is responsible for overseeing a company’s product mix
RoseWind [281]

Answer:

Marketing manager

Explanation:

Product mix, also known as product assortment, is the total number of product lines that a company offers to its customers. The product lines may range from one to many and the company may have many products under the same product line as well. All of these product lines when grouped together form the product mix of the company.

3 0
3 years ago
Read 2 more answers
What would be the net present value of a microwave oven that costs $167 and will save you $76 a year in time and food away from
Luda [366]

Answer:

NPV of the microwave: 162.04

Explanation:

we will calcualte the present value of the microwave cost savings of 76 dollars per year using the annuity formula:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 76 dollars

time  5 years

rate   0.05

76 \times \frac{1-(1+0.05)^{-5} }{0.05} = PV\\

PV $329.0402

The net present value will be the present value less investment

329.04 - 167 = 162.04

4 0
3 years ago
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