<span>“What is a risk assessment?” This post aims to allow you to answer basic questions on risk assessments such as “a definition of risk assessment”, “why do risk assessments?”, “when to do a risk assessment?” and “how to do a risk assessment?”.
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Answer:
$3.18 (rounded to nearest cent)
Explanation:
FIrst we shall find out the price at the end of year 2:
P1 = D2 ÷ (k-g)
Where,
P1 = price a the end of first year
D2 is the dividend in second year = $0.25
k is the cost of equity = 9.2% =0.092.
g is the growth rate = 2% = 0.02
now,
P1 = $0.25 ÷ (0.092 - 0.02)
=$0.25 ÷ 0.072
=$3.4722222222 (this is estimated price after two years).
Value of share today:
= Price of share after one year × (discounting factor @9.2% for one year).
Discounting factor @9.2% for two years = 1 ÷ (1.092)
=0.91575091575
The value of share today:
= ($3.4722222222) × (0.91575091575.)
= $3.17969068
= $3.18 (rounded to nearest cent).
Answer:
B. $105500
Explanation:
Calculation for What amount should Waterway Inc. record for the asset received
Asset received=$90,500+($120,500-$105,500)
Asset received=$90,500+$15,000
Asset received=$105,500
Therefore the amount that Waterway Inc. should record for the asset received is $105,500
Answer: 0.000903
Explanation:
Expected return is the sum of the probability that the other returns will happen.
= (13% * 83%) + (5% * 17%)
= 10.79 % + 0.85%
= 11.64%
Variance = ((Return during boom - Expected return)²*probability of boom) + ((Return during recession - Expected Return)²*probability of recession)
Variance = ((13% -11.64%)² * 83%) + (5% - 11.64%)² * 17%)
= 0.0001535168 + 0.0007495232
= 0.000903
Answer:
Option A
Explanation:
Effectiveness refers to the capability of an institution to produce the desired result or the required performance. Once something is considered to be successful, it implies it has a planned or anticipated impact, or it generates a deep, vibrant impression.
In other words, The magnitude to which goals are accomplished and to what extent perceived needs are met is effective. Unlike efficiency, effectiveness is measured in regards to expenses and while output implies "doing the right thing," effectiveness, means "just doing correct thing."