Answer:
Of course a sales agent can be involved, although they will probably charge a fixed amount and not a sales percentage. Many people probably need the help of a sales agent to fill out legal forms, including contracts, etc. Not everyone has the knowledge to prepare them or simply fill them out, and a sales agent can be helpful.
Answer:
1. Using CAPM, the required return is;
Required return = risk free rate + beta * market risk premium
= 6% + 1.5 * 9%
= 19.5%
2. First find the portfolio beta which is a weighted average of the individual betas;
= (60% * 2.4) + (40% * 0.9)
= 1.8
Now use CAPM
= risk free rate + beta * (Market return - risk free rate)
= 4% + 1.8 * (13% - 4%)
= 20.2%
3.Geometric average can be calculated by;
=( ((1 + r1) * (1 + r2) * (1 + r3)) ^1/n) - 1
= (((1 + 6%) * (1 + 10%) * (1 - 6%)) ^ 1/3) - 1
= (1.09604^1/3) - 1
= 3.1%
Answer:
b) The $355,000 manufacturing cost of the tables already incurred.
Explanation:
The Business has already incurred this expense in making the coffee tables, this can not be done. Therefore, it does not make sense to consider this when considering whether to complete the
Tables, or sell them as they now are
All other points contribute either directly or indirectly to the decision that the company is about to take in this regard.
So, the correct answer is b
Answer:
fixed price contract
Explanation:
Based on the information provided within the question it can be said that the neighbor most likely transferred risk with a fixed price contract. This refers to a contract that whose price is fixed at a set amount which does not depend on resources or time spent to complete the contract. Therefore it does not matter how much time or money the painter has to spend on tools, he must complete by the terms of the contract for the $1500 that were agreed upon.
Answer: Junk bonds
Explanation:
Junk bonds are a high-yielding high-risk security, that are issued by a company which is seeking to raise capital quickly to finance a takeover.
Junk bonds represent bonds that are issued by companies that are financially struggling and possess a high risk of not paying the interest or repaying the principal to investors. Junk bonds are a good investment for the investors who need the higher return and those that can also afford the higher risk.
