Answer:
Year Cashflow [email protected]% PV
$ $
1 150 0.8929 134
2 150 0.7972 120
3 150 0.7118 107
4 250 0.6355 159
5 300 0.5674 170 6 600 0.5066 <u>304 </u>
<u> 994</u>
Explanation:
In this case, we will discount the cashflow for each year at 12% per annum. The discount factor can be obtained by using the formula (1 + r)-n. Then, we will multiply the cashflows by the discount factors in order to obtain the present values. All the present values will be added up.
Answer:
B. Keynesian
Explanation:
Keynesian economics or theory believes that government can boost the economy and stimulate or increase demand, in times of economic downturn, by increasing spending and lowering taxes.
This increase in government activities will create jobs and reduce unemployment and lead to more spending and investment, by individuals and businesses, in the economy.
Answer:
Dr. Cash for 1,100
Cr. Notes receivable for 1,000
Cr. interest revenue for 100
Answer:
Stock of GM has more systematic risk while stock Exxon Mobil has more total risk. So C. GM, XOM is the correct option.
Explanation:
Systematic risk is a risk that is inherent in the market and is undiversifiable. The beta is the measure of systematic risk. The beta of market is always 1 and any stock with a higher beta has a higher systematic risk,
The total risk is the sum of both systematic and unsystematic risk. The unsystematic risk is a risk that is firm specific and is diversifiable through forming a portfolio and diversifying it. The standard deviation is a measure of the total risk and the higher the standard deviation, the higher the total risk.
Stock of GM has a higher beta than that of Exxon thus it has a higher systematic risk. Stock of Exxon has a higher standard deviation thus it has a higher total risk.