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2 years ago

Keys Corporation's 5-year bonds yield 5.10% and 5-year T-bonds yield 4.40%. The real risk-

Business

1 answer:

alexdok [17]2 years ago

4 0

Answer:

.20

Explanation:

=> r(corp) = rf + ip + Ip + drp + mrp , so 5.10% = 2.50% + 1.50% + 0.50% + drp + [(5-1) * 0.1]%, now solving the equation for drp, we get = 5.10 - 2.50 -1.50 -0.50 - 0.4 = 0.20%

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10. Lucy is catering an important luncheon and wants to make sure her bisque has the perfect consistency. For her bisque to tu

goldfiish [28.3K]

I would go with option A.

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3 years ago

On January 1, Year 1 Missouri Co. purchased a truck that cost $49,000. The truck had an expected useful life of 10 years and a $

serg [7]

Answer:

The amount of depreciation expense recognized in Year 2= $7,800.

Explanation:

Determine the depreciation base

The depreciation base = Acquisition cost - Residual/Salvage value.

The depreciation base = 49,000 - 5,000

The depreciation base = $44,000.

Determining the depreciation rate

The depreciation rate = depreciation base / Useful life

The depreciation rate = 44,000/10

The depreciation rate = $ 4,400.

To determine depreciation % rate

Depreciation % rate = (The depreciation rate / depreciation base) × 100

Depreciation % rate = (4,400 / 44,000) × 100

Depreciation % rate = 10 %

But since Missouri Co. uses double declining balance method of depreciation, the correct depreciation % rate is 10 × 2 = 20%

Determining the depreciation expense for year 2

Year 2 depreciation expense is computed as follows:

(Acquisition cost - year 1 depreciation expense) × Depreciation % rate

Depreciation expense for year 2 is computed as:

Acquisition cost × Depreciation % rate = 49,000 × 20%

Year 1 depreciation expense = $9,800.

Therefore year 2 depreciation expense = (49,000 - 9,800.) × 20%

Therefore year 2 depreciation expense = $ 7,800.

8 0

3 years ago

The moral case for why a company should actively promote the betterment of society and act in a manner benefitting all its stake

faust18 [17]

The answer to this question is goes down "it is the right thing to do". In the company, many time during the decision-making time, the moral case for why a company should actively promote the betterment of society and act in a manner benefitting all its stakeholders go down or boil down to it is the right thing or the good thing to do.

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3 years ago

Sally has invested $10,000 now and wants to earn a real interest rate of 10% per year. Assume that the inflation rate is 7% per

hodyreva [135]

Answer:

Results are below.

Explanation:

Giving the following information:

Inflation rate= 7%

Real rate of return= 10%

Present value (PV)= $10,000

Number of periods (n)= 10 years

The real rate of return incorporates the effect of the inflation rate. Therefore, the nominal rate of return:

Nominal rate of return= 0.1 + 0.07= 17%

To calculate the Future Value, we need to use the following formula:

FV= PV*(1 + i)^n

FV= 10,000*(1.17^10)

FV= $48,068.28

This is the nominal value received after ten years.

If Sally wants to determine the real value of the investment after 10 years, we must use the real rate of return:

FV= 10,000*(1.1^10)

FV=$25,937.42

4 0

2 years ago

An example of foreseeable damages from a faulty repair of your car that led to an accident would be __________. your loss of a w

OLga [1]

Answer:

the cost to repair your vehicle, as well as all damage to other vehicles involved in the accident.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, executory contract, etc.

A foreseeable damage can be defined as a any form of damage that the parties to a contract knew or took note of at the time when they were signing an agreement to the contract. Thus, it is the ability of an individual to reasonably anticipate the likelihood of damage or potential injury in a given circumstance such as an accident.

This ultimately implies that, foreseeable damages involves the ability of a reasonable individual to anticipate the potential results of his or her actions such as damage or injury to another person due to the refusal to repair a faulty car.

An example of foreseeable damages from a faulty repair of your car that led to an accident would be the cost to repair your vehicle, payment of hospital bill for the injured, including the damage to other vehicles that were involved in the car accident.

5 0

2 years ago