Answer:
The market risk premium is 9.3%
Explanation:
Market risk premium can be obtained by calculating the difference between the expected return on the market and the risk-free rate.
In the question given, the risk rate fee refers to the US treasury bill.
Therefore,
Market risk premium = market rate-risk free rate
= (12.6% - 3.3%)
= 9.3%
So, in the question given, the market risk premium is
9.3%
Actually it depends on different variables. An objective is usually used at the beginning of a resume, while the summary is mostly used in the middle or end of the resume.<span />
Answer: Cash flow problem
Explanation: In simple words, cash flow problem refers to a situation when an entity faces difficulty in controlling the outflow in relation to their inflow. This can occur mainly due to two factors- low profit or losses and over investment.
In the given case, the company is facing the problem of over investment as they are not getting any inflow but have to bear the outflow for effectively operating their business.
Hence from the above we can conclude that the correct option is B.
Answer:
735,000 units
Explanation:
The estimated units is computed below:
As we know that
Number of units produced = Estimated units sold + ending inventory units - beginning inventory units
750,000 units = Estimated units sold + 45,000 units - 30,000 units
750,000 units = Estimated units sold + 15,000 units
So, the Estimated units sold would be
= 750,000 units - 15,000 units
= 735,000 units
Answer:
Starbucks
Starbucks' Capital Structure
Restructured from a primarily equity-financed company to a primarily debt-financed company:
A. Yes.
Explanation:
Starbucks' assets are more than 60% financed by long-term debts, with less than 40% financed by equity. The advantage of having a higher debt leverage is to optimize the returns to the stockholders. This is because interest expenses arising from the debts are tax-deductible. The ROE (return on equity) is always higher for a debt-leveraged firm than an equity-financed firm because more of the net income will be available for distribution to stockholders, given the tax benefits of having more debts.
