Risk is the major factor to consider when deciding the funding, when funds are provided it is a risk that whether the funds will be received or not.
<h3>What is Risk?</h3>
Risk is the threat of being unable to receive the funds back, this is the highest level of risk, there are many small risks too, but the highest level is losing the money.
There could be a small portion of loss of money or sometimes the debtor completely defaults so not a single penny is retrieved.
Funding is a choice and the debtor should be chose according to the risk appetite of the investor or lender on money.
There are investors who are risk averse are not willing to take the risk and fine with the less amount of returns and there are risk takers, who want high returns in return of high risk of defaulting.
Learn more about Risk at brainly.com/question/27331968#SPJ1
Answer:
0.17
Explanation:
The computation of the expected return on investment is shown below:
= (Expected return of the outcome 1 × Probability of the outcome 1) + (Expected return of the outcome 1 × Probability of the outcome 1) + (Expected return of the outcome 1 × Probability of the outcome 1)
= (0.15× 0.50) + (0.25 × 0.30) + (0.10 × 0.20)
= 0.075 + 0.075 + 0.02
= 0.17
Well, you just need to find it using this formula :
5,000 x [100 % - (3% x 91/365)]
= 5,000 x [ 100 % - 0.007479]
= 5,000 x 99.992521
= $ 4,962.50 >>> rounded
Hope this help
The company has declared a 100% stock dividend on its common stock will not be considered while calculating the earnings per common shares should be.
Earnings per share = Net Income / Number of equity shares.
where Net Income = $1,520,000
Common equity shares = 300,000
Earnings per share = $1,520,000 / 300,000
Earnings per share = $5.07
Therefore, earnings per common share for year 2015 for Rice Corporation is $5.07
Answer:
D) Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
Explanation:
The Federal Reserve (FED) can respond to excessive pessimism among consumers and businesses by expanding the money supply and lowering interest rates. To deal with excessive optimism they can do the opposite, they can shrink the money supply and increase the interest rate.
