Answer:
The correct choice is D)
All securities DO NOT lie on the Securities Market Line (SML) in the capital asset pricing model (CAPM).
Explanation:
The security market line (SML) is a line drawn on a chart that portrays a graphical representation of the capital asset pricing model (CAPM)—which shows various degrees of market risk, for different marketable securities, plotted against the expected return of the entire market at any given time.
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Answer:
Kenoly uses the effective-interest method, the amount of interest to be recorded in the financial statements on October 31, 2020 is $18,750.
Explanation:
Bond cost 562500
Bond discount 9%
Bond years 10
Bond yield 10%
Discount (June 30 - Oct. 30) = 9% * 4/12 = 0.033
Interest (June 30 - Oct. 30) = 0.033[ 10% * 4/12]
Interest Expense = $18,750
Answer:
a.when different resources are used to produce one output
Explanation:
<em>A common cost it's the shared expense between two (or more) producers or departments when they generate a product, operate a facility or give a service;</em> considering this information we can conclude that <em>the correct answer is a, when different resources (from different producers or departments) are used to produce one output (product, service, facility).</em>
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Answer:
Today the stock should sell for $59.16
Explanation:
The three stage growth model of Dividend discount model approach will be used to calculate the price of this stock today. The DDM bases the value of the stock today based on the present value of the expected future dividends that the stock will pay. The price per share today of this stock under the DDM model will be,
P0 = 2 * (1+0.2) / (1+0.105) + 2 * (1+0.2) * (1+0.12) / (1+0.105)^2 +
2*(1+0.2)*(1+0.12)^2 / (1+0.105)^3 +
[(2 * (1+0.2) * (1+0.12)^2 * (1+0.06) / (0.105-0.06)) / (1+0.105)^3 ]
P0 = $59.16