Answer:
16.50%
Explanation:
For computing the required rate of return first we have to find out the beta and then market risk premium and then finally new required rate of return which is shown below:
As we know that
Required rate of return = Risk free rate + Beta ×Market risk premium
12.50% = 3% + Beta × 4.75%
So, the beta is 2%
And,
The new market risk premium is
= 4.75% + 2%
= 6.75%
So, the new required rate of return is
= 3% + 2% × 6.75%
= 3% + 13.5%
= 16.50%
Answer:
$1,056.07
Explanation:
Given:
Amount spent each month = $83.42
Interest rate, r = 1.8% = 0.018
Time, n = 3 years
Now,
The total amount collected at the end of the year = $83.42 × 12 = $1001.04
The value of amount deposited in the bank after 3 years will be
Future value = Present value × ( 1 + r )ⁿ
on substituting the respective values, we have
Future value = $1001.04 × ( 1 + 0.018 )³
or
Future value = $1,056.07
Hence,
The money he could have at the end of 3 more years will be $1,056.07
Answer:
the expected return on the portfolio is 12.34%
Explanation:
The computation of the expected return on the portfolio is shown below:
Expected Return is
= Investment in BBB × Return+ Investment in ZI × Return
= 16.4 × 48% + 8.6 ×52%
= 7.87% + 4.47%
= 12.34%
hence, the expected return on the portfolio is 12.34%
Answer:
$7200.2882
Explanation:
Amount of Mortgage that you need to take is 1mil - 300k = $700,000
Using financial calculator, we have the following inputs:
PV = 700,000 (the amount of mortgage need to take)
I/Y = 1% (annual interest is 12% --> Monthly interest is 12%/12 = 1%)
n = 360 (30 years have 30x12 = 360 months)
FV = 0 (value of mortgage at end of 30th year is nil)
PMT = ? (Monthly mortgage payment - the missing value we need to find)
--> PMT = $7200.2882
Answer:
Decrease assets and decrease stockholders equity
Explanation:
Shareholders of the Company are rewarded for their contribution through dividends.
<u>Declaration and payment of a cash dividend results in the following journal :</u>
<em>Dividend (debit)</em>
<em>Cash (credit</em>)
Thus,
The Owners Equity Decrease whilst the Assets Account (Cash) Decreases