Answer:
Utility
Explanation:
In economics satisfaction and pleasure is defined as a utility. When a person drinks water he/she gains utility that is a sense of satisfaction. The most important factor that increases or decreases the demand for a particular commodity is how much utility or satisfaction it provides to the end-user. Overall, the concept was first explained by Jeremy Bentham and John Stuart Mill.
Answer:
$5,000
Explanation:
Since the payments are due semi-annually and the bond were issued on January 1, 2016 at 100, we will have to calculate the interest cash payments for the two semi-annuals in 2016. Therefore, the interest rate to use is the full annual 5% stated rate. Therefore, we have:
Interest cash payment = Bond face value × Interest rate
= 100,000 × 5%
Interest cash payment = $5,000.
Therefore, the cash interest payments in 2016 is $5,000.
Completion of the project is the final stage in project life cycle the criteria for this stage is to successfully achieve all the explicit goals. When the end solution for the project is formulated and submitted then the project is completed. The customer gives sign off after completion.
To know if the project is complete some steps can be followed such as review the time allocated for the project to be complete. The project team members have to be consulted if the project is completed. Once the project is completed it is documented and next new project is started.
Answer:
Cost of equity = 11.20%, Value of Equity = $39.25
Explanation:
a. Cost of equity = Rf + B(Rm-Rf)
Cost of equity = 4% + 1.2(6%)
Cost of equity = 4% + 7.20%
Cost of equity = 11.20%
b. P/E ratio = 20
Market Price / EPS = 20
Market Price = EPS * 20
-->P1 = $2.17 * 20 = $43.40
DPS1= $0.24
Value of Equity = P1/Cost of Equity + DPS1/Cost of equity
Value of Equity = $43.40/1.1120 + $0.24/1.1120
Value of Equity = $39.03 + $0.22
Value of Equity = $39.25
Answer:
Reward-to-risk for stock Y = (0.124 - 0.052) / 1 = 0.072 = 7.2%
Reward-to-risk for stock Z = (0.082 - 0.052) / 0.6 = 0.05 = 5%
SML reward to risk is beta of market. i.e., 6.4%
Explanation: