The difference by which the required discount rate exceeds the risk-free rate is called the

1 answer:

5 0

Risk premium.

The risk premium is the difference between the required discount rate and the risk-free rate, as measured by T-bills. This risk premium is important for computing the CAPM and other portfolio management equations.

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Which actions can you take to bring back your computer from sleep mode?

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Cybertrex, a manufacturing facility, rented a new piece of equipment on January 1st and agreed to pay an annual rental fee of $1

barxatty [35]

Answer:

4) $120,781

Explanation:

You can calculate the present value of the rental payments in two different ways:

1) multiply the value of the annuity times the present value of the annuity for 10 years = $18,000 x 6.71008 = $120,781

2) or you can divide calculate the present value of every annuity and then add them up

present value = ($18,000 / 1.08) + ($18,000 / 1.08²) + ($18,000 / 1.08³) + ($18,000 / 1.08⁴) + ($18,000 / 1.08⁵) + ($18,000 / 1.08⁶) + ($18,000 / 1.08⁷) + ($18,000 / 1.08⁸) + ($18,000 / 1.08⁹) + ($18,000 / 1.08¹⁰) = $16,667 + $15,432 + $14,289 + $13,321 + $12,250 + $11,343 + $10,503 + $9,723 + $9,004 + $8,337 = $120,781

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3 years ago

Sales ReturnsWhich of the following statements is true relating to the allowance for sales returns?a. Sales returns is treated a

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Answer:D. Increasing the allowance for sales returns by an amount that is less than the actual returns recognized for the period may indicate either the company is attempting to increase profit for the period or its estimates that less of its products will be returned in the future.

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Answer:

The basic questions to answer are the 4 economic problems.

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The question of what to produce has already been answered by determining to produce cotton shirts.

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This deals with the procedure and materials needed for production. In answering the question of how to produce, one must a certainnn the needed materials needed, suitable labour and appropriate processes.

For whom to produce?

Not the individual or firm must ascertain the category of people he wants to produce for, it it the rich or the poor, elite or artisans, students or working class, adults or babies.

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