Answer:
12.84
Explanation:
In this question, we use the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 1.5% + 1.80 × (7.8% - 1.5%)
= 1.5% + 1.80 × 6.3%
= 1.5% + 11.34%
= 12.84
Since the standard deviation is not relevant. Hence, ignored it
Answer: D is the correct answer
Explanation:
Answer:
An unlimited liability corporation is a Canadian corporation designation, wherein shareholders are liable up to unlimited amounts for any liability, act or default of the corporation. By comparison, in most corporations, shareholders are not usually liable due to a limited liability model.
Explanation:
Answer:
The adjustment to net income for the period will be reported as:
Debit Interest expense ($600 - $500) $100
Credit Interest payable $100
<em>(Being interest expense for the period)</em>
Explanation:
Interest payable is the accumulation of the interest expense in the balance sheet overa specific period of time agreed with the creditor. When it becomes payable, the interest payable account is debited while cash is credited.
The interest payable in the Coffee Cup Company's account increased from $500 (credit balance) to $600 credit balance. This means there would have been an additional $100 interest expense recorded during the period in order to increase it to $600.
Present value of obligation is: 10,300(Cumulative PVF at 8% for two years)=10,300*1.783=$18,367.63
Duration of obligation is 1.4808 years.
The duration of a zero-coupon bond is 1.4808 years would immunize the obligation. $18,367.63(1.08)1.4808=$20,584.82.
If interest obligation increases to 9%, the value of the bond would be $18,118.65 and it changed by $0.19, the same is for if it falls to seven percent.
Hope this helps, now you know the answer and how to do it. HAVE A BLESSED AND WONDERFUL DAY! As well as a great rest of Black History Month! :-)
- Cutiepatutie ☺❀❤
