Answer:
CCC's new required return be 16.5%
Explanation:
For computing the new required return, first, we have to compute the risk-free rate of return which is shown below:
Expected return = Risk- free rate of return + Beta × (Market risk - Risk- free rate of return)
12% = Risk- free rate of return + 1.5 × (10% - Risk- free rate of return))
12% = Risk- free rate of return + 15% - 1.5% Risk- free rate of return
So, the Risk- free rate of return is 6%
Now the average stock is increased by 30%
So, the new market risk is 13% and other things will remain constant
So, the new required return equal to
= 6% + 1.5 × (13% - 6%)
= 6% + 1.5 × 7
= 16.5%
Answer:
Prepare for the future
Explanation:
Personal financial planning is the term used to describe the way an individual or a family manage their finances to meet their short-term and long-term goals. It involves developing personal financial goals and making plans on how to achieve them.
In developing and making plans, an individual considers the current and expected future income, present and expected expenditures such as medical health insurance expenses and school fees. An individual may opt to engage the services of a personal finance manager who advances on the savings and investments required to achieve the intended goals. Financial Planning Planning assists one prepare for the future.
Answer: 3.50 years
Explanation:
The Payback period is a method of checking the viability of a project. It measures how long it will take a project to pay back it's initial investment.
Formula is;
= Year before payback + Cash remaining till payback/ Cash inflow in year of payback
Year 1 Net Cash Inflow
= Cash Inflow - Cash Outflow
= 30,000 - 12,000
= $18,000
Year 2
= 45,000 - 20,000
= $25,000
Year 3
= 60,000 - 25,000
= $35,000
Year 4
= 50,000 - 30,000
= $20,000
Year 1 + 2 + 3
= 18,000 + 25,000 + 35,000
= $78,000
Amount remaining till payback
= Investment - Cash inflow so far
= 88,000 - 78,000
= $10,000
= Year before payback + Cash remaining till payback/ Cash inflow in year of payback
= 3 + 10,000/20,000
= 3.50 years
Answer:
The correct answer is letter "C": the relationship between a country's GDP and its factors of production.
Explanation:
The Aggregate Production Function describes the relationship between a country's Gross Domestic Product (GDP) and the factors of production involved in it. Aggregate Production functions are considered physical and human capital, labor, knowledge, social infrastructure, and natural resources. Production increases as a result of increases in capital, natural resources, and labor.
Answer:
A partnership is a taxable entity for Federal income tax purposes.
