Answer:
13%
Explanation:
As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
11% = 7% + Beta × 6%
Beta = 1
now If the market risk premium increased to 6% so,
The required rate of return = 7% + 1 × 6%
= 13%
Therefore for computing the required rate of return we simply applied the above formula.
IPhone. People pay a ton for iPhones. I think people pay so much because it’s a computer in ur pocket.
Answer:
d. One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.
CORRECT As the project yields over time can differ. This generates that projects with a lower IRR can achieve a higher NPV at lower rates.
There is a crossover point after which a projects NPV are equal and from there the one with higher IRR obtains better NPV
Explanation:
a. One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.
FALSE both method consider time value of money
b. One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital
FALSE The IRR can be compared against the cost of capital to indicate wether or not a project should be preferable
.c. One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future.
FALSE IRR considers the time value of money
e. One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.
FALSE it considers all the cash flows over the project's full life.
Answer:
c. $2,000
Explanation:
total loss claim = business auto loss + stock investment loss
= $1,000 + $1,000
= $2,000
Therefore, The Kim may claim $2,000 of these losses.
Answer:
Country X will have higher growth potential than country Y.
