If a government accumulates chronic budget deficits over time, what's one possible result?

"Stock in Daenerys Industries has a beta of 0.73. The market risk premium is 10 percent, and T-bills are currently yielding 5 pe

ololo11 [35]

Answer:

CAPM = 12.30%

Dividend Growth Model= 10.32%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)

5% + (0.73 x 10%) = 12.30%

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

$35 = $1.6 x (1.055) / (r - 0.055)

r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%

8 0

3 years ago

As a bank loan officer, you are considering a loan application by Peak Performance Sporting Goods. The company has provided you

Xelga [282]

Answer:

66.7%

Explanation:

Calculation to determine Peak Performance's debt to owners' equity ratio

First step is to calculate the Owner's Equity using this formula

Owner's Equity=Total Assets - Total Liabilities

Where,

Total Assets =$25,000 + $45,000 + $140,000 + $190,000

Total Assets = $400,000

Total Liabilities =$70,000 + $90,000

Total Liabilities=$160,000

Let plug in the formula

Owner's Equity=$400,000-$160,000

Owner's Equity=$240,000

Now let Calculate the debt to owners equity ratio using this formula

Debt to owners equity ratio= Debt [total Liabilities]/Owner's Equity

Let plug in the formula

Debt to owners equity ratio = $160,000/$240,000

Debt to owners equity ratio = 0.667*100

Debt to owners equity ratio= 66.7%

Therefore Peak Performance's debt to owners' equity ratio is 66.7%

7 0

3 years ago

Why is questioning such an important leadership skill?

irakobra [83]

Answer:

D. Questioning is a good way for the leader to stay in command.

Explanation:

It is known in new management jobs to panic because some would say or be open enough to feel apprehension or at worse to feel perceived as a fraud as skills are not advanced in new management jobs to full fill the criteria for a specialist role. When questioning, the process of learning by asking questions and listening. The more a manager listened, the better his or her questions became and the more they had learned. Questions also helped managers clarify their own thinking on projects, workflow, and strategies for their new unit.

How well do you ask questions? From some managers experience, most managers and leaders don't think about this issue very often. The "ability to ask questions" doesn't usually show up on any list of managerial competencies or job description requirements. However, asking questions effectively is a major component of any manager or leader's job, and asking good questions often distinguishes outstanding leaders and managers from average ones (or worse, poor ones).

7 0

3 years ago

The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable fac

In-s [12.5K]

Answer:

the total budgeted factory overhead for November is : 2) $110,000.

the budgeted direct labor hours for December must be : 3) 9,000 hours.

total budgeted factory overhead per direct labor hour is : 1) $14.38

Explanation:

To determine the budgeted factory overhead for November, prepare a budgeted factory overhead for November as follows :

November

Budgeted Variable factory overhead ($5.00 × 7,000 hours) = $35,000

Budgeted Fixed factory overhead = $75,000

Total budgeted factory overhead = $110,000

December

Total Cash Disbursements = $105,000

Less Budgeted Fixed factory overhead ($75,000 - $15,000) = $60,000

Budgeted Variable factory overhead = $45,000

Therefore, budgeted direct labor hours = $45,000 / $5.00

= 9,000 hours.

December

Budgeted Variable factory overhead ($5.00 × 8,000 hours) = $40,000

Budgeted Fixed factory overhead = $75,000

Total budgeted factory overhead = $115,000

Therefore, total budgeted factory overhead per direct labor hour = $115,000 / 8,000 hours = $14.375

Which is $14.38 (rounded)

3 0

3 years ago

Madsen Motors's bonds have 18 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon i

ivolga24 [154]

Answer:

$906.30

Explanation:

Face value (FV) = $1000

Coupon payment (C) = 7% of $1000 = $70

Yield to maturity (r) = 8% = 0.08

t = 18

Number of compounding periods (n) = 1 (annually)

Using the relation:

C[( 1 - (1 + r/n)^-nt) / (r/n)] + FV / (1 + r/n)^nt

70[(1 - (1 + 0.08)^-1*18) / (0.08/1)] + 1000 / (1 + 0.08/1)^1*18

70[1 - (1.08)^-18) / 0.08] + 1000 / 1.08^18

70[(1 - 0.2502490)/0.08] + (1000 / 3.99601949918)

70(9.3718871) + 250.24902

= $906.281117

= $906.30

6 0

2 years ago