Answer:
The difference between two securities is 0.89%.
Explanation:
Inflation premium for the next three and five years:
Inflation premium (3) = (1.6% + 3.05% + 3.85%) ÷ 3
= 2.83%
Inflation premium (5) = (1.6% + 3.05% + 3.85% + 3.85% + 3.85%) ÷ 5
= 3.24%
Real risk-free rate = 2.35%
Since default premium and liquidity premium are zero on treasury bonds, we can now solve for the maturity risk premium:
Three-year Treasury securities = Real risk-free rate + Inflation premium (3) + MRP(3)
6.80% = 2.35% + 2.83% + MRP(3)
MRP (3) = 1.62%
Similarly,
5-year Treasury securities = Real risk-free rate + Inflation premium (5) + MRP(5)
8.10% = 2.35% + 3.24% + MRP(3)
MRP (5) = 2.51%
Thus,
MRP5 - MRP3 = 2.51% - 1.62%
= 0.89%
Therefore, the difference between two securities is 0.89%.
Answer:
Fictitious revenues
Explanation:
The fictitious revenue is a revenue that do not belong to the organization but it would be added to the revenue section intentionally.
Therefore as per the given situation, in the case when the fraud is involved in the financial statement so this is a type of fictitious revnenues
hence, the same is to be considered
What is expected to happen in America by 2023 as predicted by census trends is that the majority of children will not be Caucasian.
The current "trend" is that many white people marry black or people of Asian descent, which means that their children are no longer Caucasian, but rather a mixture of the two races. Well, in the future, this trend is only going to be more prominent, which will result in fewer Caucasian people in America.
Answer: A stock split will not have any effect on the total common stockholders' equity of $1,200,000.
Explanation:
A stock split is the issue of shares to the stockholders of a company. In this case, a stockholder will have 2 shares for a 1 share held earlier. Because the total equity does not change, the value of each share falls, reducing the market price. The total number of common stock however will increase.
The calculation is done in the following way.
Candela has common stock outstanding of 200,000
2x : 1 ( 2 x 200,000: 200,000)
=400,000 common stock
True because if you want to get the best you gotta produce the best
