Answer:
14.81%
Explanation:
Data provided in the question:
Average return on stocks = 12.49% = 0.1249
Average risk-free rate = 2.56% = 0.0256
Small-company stocks averaged = 17.37%
Now,
The Risk premium on small company stocks is
= ( Return on small company stocks ) - ( Risk free rate )
or
Risk premium on small company stocks = 17.37% - 2.56%
or
Risk premium on small company stocks = 14.81%
Answer:
(1) If discount rate is 7%, present value of $1,400 paid in three years is $3,674.04
(2) If discount rate is 8%, present value of $1,400 paid in three years is $3,607.94
(3)If discount rate is 9%, present value of $1,400 paid in three years is $3,543.81
Explanation:
We can use excel or manually calculate as below:
(1) Discount rate is 7%:
= $1400/(1+7%)^3+$1400/(1+7%)^2+$1400/(1+7%) = $3,674.04
(2) Discount rate is 8%:
= $1400/(1+8%)^3+$1400/(1+8%)^2+$1400/(1+8%) = $3,607.94
(3) Discount rate is 9%:
= $1400/(1+8%)^3+$1400/(1+9%)^2+$1400/(1+9%) = $3,543.81
I attached the calculation in excel for your reference.
Jordan's Underprices
If you find a lower advertised price on identical merchandise under the same terms and conditions from another store-based retailer within the local Retail Trade Area, within 30 days of purchase, Jordan's Furniture will refund the difference.
Industry: Retail; Furniture
Answer:
March 31, outstanding debt $25,000
During April $10,000 more merchandise is sold to Cars inc. (COGS $8,000)
Cars paid $12,000 to Preston to lower its accounts payable
On March 31, Preston's balance sheet showed an accounts receivable of $25,000.
On April 30, the accounts receivable balance is $23,000, the cash balance increased by $12,000 and retained earnings should increase by $2,000.
The income statement should show an increases in sales revenue of $10,000 - $8,000 COGS = $2,000 profit (which increases retained earnings).
Hi there
Excess reserve balance is
1,000−1,000×0.1=900
Hope it helps