$670 is the final balance due that max wants to pay.
<u>Explanation</u>:
- Max borrowed a $2000 amount on a 120-day note. First, he paid $700 in the 120-day note. So the current amount he paid is $700.
- After thirty days max paid the amount of $630. So totally he paid $1330 in a note of 75 days. So 45 days are remaining.
- So the final balance due is $670. So Max wants to pay $670 on a note of 45 days.
Answer: True
Explanation: <em> Bond-yield-plus-risk-premium method is used if the entity has publicly listed debt, shapes the bond return. This is therefore effective interest on a organization's long-term debt.
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<em>Here equity risk premium approximation can be extremely imprecise, also fluctuating disorderly, depending on which framework is used.</em>