Answer: 12.5%
Explanation:
Given the following :
Beta (B) = 1.3
Marginal tax rate = 34%
Risk free interest rate = 6%
Market rate of return = 11%
The cost of equity is calculated using the relation:
Risk free rate of return + Beta(market rate of return - risk free rate of return)
Cost of equity = 6% + 1.3(11% - 6%)
Cost of equity = 6% + 1.3(5%)
Cost of equity = 6% + 6.5%
Cost of equity = 12.5%
Therefore, the firm's cost of internal equity is 12.5%
Answer: return on investment
Explanation:
The return on investment is a ratio that exists between the net profit and the cost of that particular investment. It should be noted that a high return on investment simply means that the profit of the investment compare favourably to the cost incurred for that investment.
Some investment opportunities that should be accepted from the viewpoint of the entire company may be rejected by a manager who is evaluated on the basis of return of investment.
The adjusting entry would recognise insurance expense of $1,500.
Explanation:
The policy of an insurance company, tax insurance, insurance for business failure, etc. typically lasts a year, with payments charged in full (insurance premiums). Insurance policy is never the same as the financial year of the product. There are also expected to be several consolidated financial statements and some partial financial statements for compensation premiums.
Example of insurance premium payment:
On 31 December, the insurer files an correction report in order to document the expired (extended) cost of insurance and to the the pre-paid number. This is done with an premium fee of $1,000 and a prepayment policy bonus of $1,000.
Answer:
Migration refers to the movement of a group of people from one geographical region (location) to another geographical destination in search of better living conditions, work or social amenities.
Explanation:
Migration refers to the movement of a group of people from one geographical region (location) to another geographical destination in search of better living conditions, work or social amenities.
Migration selectivity can be defined as the likelihood or tendency that a subset (part) of a group of people are going to move (migrate) out of a particular geographical location or area.
Some of the factors that influence migration selectivity are income level, age, education, gender etc.
One way migration affects various locations across the world such as Texas, Brazil, Paris, Rome, Stuttgart, Kyiv, etc., includes the establishment of different restaurants. For example, the establishment of KFC, McDonalds, Mr Biggs were influenced by the migration of people across European cities and as such served as tourist attraction centers, thus, positively affecting the character of these places.
Answer: 4%
Explanation:
From the question, we are informed that Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year and that at the end of the year, retiree benefits paid by the trustee were $28 million and cash invested in the pension fund was $32 million.
Based on the above scenario, the percentage rate of return on plan assets goes thus:
Opening balance of plan assets 1200
Add:- Actual return = 48
Add:- contributions = 32
Less :- retiree benefits = -28
Closing balance of plan assets = 1252
It should be noted that the actual return is the balancing figure which is calculated as:
= 1252 + 28 - 1200 - 32
= 48
The percentage rate of return on plan assets will now be:
= 48/1200
=0.04
= 4%
