Answer:
18.80%
Explanation:
Data given
Risk free rate = 4%
Beta = 1.85
Market return = 12%
The computation of rate of return is shown below:-
Using CAPM
Rate of Return = Risk free rate + Beta × (Market return- Risk free rate)
= 4% + 1.85 × (12% - 4%)
= 4% + 1.85 × 8%
= 4% + 14.8%
= 18.80%
Therefore for computing the rate of return we simply applied the above formula.
The answer is true. The mean salary for a set of workers is their average wage. Government and other organizations frequently track and use this metric as a benchmark for the pay scales of particular employees in a given sector, region, or nation.
Given the propensity of low pay in an economy for low pay, the validity of this measure in measuring wage levels is in question. This is because the earnings of a small fraction of high earners have a tendency to "skew" the average upward. The Office for National Statistics and the Scottish Low Pay Unit both utilize this measure in the UK for analyzing wage levels.
To learn more about average, click here.
brainly.com/question/24057012
#SPJ4
Answer:
$77,217
$11,289
Explanation:
Fist we will calculate the present value of $10,000 payment
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. The value of the annuity is also determined by the present value of annuity payment.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Annual payment = $10,000
r = rate of return = 10% / 2 = 5%
n = number of period = 5 years x 2 semiannual payments per year = 10 payments
PV of annuity = $10,000 x [ ( 1- ( 1+ 0.05 )^-10 ) / 0.05 ]
PV of Annuity = $77,217
Now we will use the discounting method to calculate the present value of lump sum payment of $20,000
Present value = Future value x Present value factor
PV = FV x ( 1 + r )^-n
PV = $20,000 x ( 1 + 0.1 )^-6
PV = $11,289
Answer: d. 3.82%
Explanation:
ROE = Net Income / Equity so Equity need to be ascertained.
1.75 = Total Assets/ Total Equity
Total Equity = Total Assets/ 1.75
1.33 = Revenue / Total Assets
Total Assets = Revenue / 1.33
= 320,000/1.33
= $240,601.50
Total Equity = 240,601.50/1.75
= $137,486.57
Old ROE = 10,549/ 137,489.57
= 0.07672582
= 7.67%
New ROE = (10,549 + 5,250) / 137,489.57
= 0.11491053466
= 11.49%
Difference = 11.49 - 7.67
= 3.82%
