Answer:
The risk premium on market is 8%
Explanation:
The CAPM or Capital Asset Pricing Model is used to calculate the required rate of return on a stock which is the minimum return that is expected or required by the investors to invest in a stock based on its systematic risk as measured by the beta of the stock.
The formula to calculate r under the CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the risk premium on market
To calculate the risk premium on market, we will input the available values for r, rRF and beta in the equation above.
0.158 = 0.07 + 1.1 * rpM
0.158 - 0.07 = 1.1 * rpM
0.088 / 1.1 = rpM
rpM = 0.08 or 8%
So, the risk premium on market is 8%
Answer:
a. $179000
Explanation:
The computation of the cash provided by operating activities is shown below:
Net Income $2,10,000
Add : Depreciation expense $27,000
Add : Loss on sale of equipment $2,000
Add : Decrese in prepaid expenses $5,000
Less : Decrease in accounts payable $6,000
Less : Increse in accounts receivable $17,000
Less :Increase in inventory $42,000
Cash provided by operating activities $179,000
The legal contract between the bondholders and the issuer is called the bond <u>indenture.</u>
A bond indenture is important as it helps to protect the interest if the stakeholders and also lowers the chance of default.
It should be noted that the indenture list provides the details of a bond. It helps in ensuring transparency. Therefore, the legal contract between the bondholders and the issuer is called the bond indenture.
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Internal obstacle can rise from within the organization causing problems while external obstacle is from outside
Answer:
D.$19.56
Explanation:
The computation of the standard rate per direct labor hour is shown below:
= Basic direct labor rate + payroll tax rate percentage × Basic direct labor rate + fringe benefits per hour
= $12 + $12 × 13% + $6
= $12 + $1.56 + $6
= $19.56
We simply added the basic direct labor rate + payroll tax rate + fringe benefits per hour so that the correct rate per direct labor hour can come
