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>
Answer:
The correct answer is: The consumer considers the prices of the products.
Explanation:
When taking the decision regarding how to maximize utility the consumers will consider the prices of the products. The consumer will be able to maximize utility at the point where the marginal utility of money spent on each commodity is equal.
We can represent it as,
Answer:
Hi
The insurance company should not pay as it is explained that the insurance policy did not cover against vandalism or theft, and a fire is the product of an act of vandalism.
Explanation:
To avoid this type of problem, there are the multi-risk policies of the home, which offer coverage for damages due to vandalism, to cover the damages caused by malicious intent by third parties. This coverage usually includes damages caused by people other than the policyholder, their relatives, employees or people living in the insured home. Some insurers include damages caused by tumultuarial actions in activities of meetings or demonstrations, as well as the existence of legal strikes, unless the aforementioned actions had the character of a mutiny or popular uproar. But we must consider that not all vandalism situations are covered by insurance, and situations such as graffiti, inscriptions, graffiti drawings are usually not covered, but depend on each specific policy.
The lease-purchase contract should include all of the following EXCEPT <u>all </u><u>financing terms</u><u> for the </u><u>purchase</u><u>.</u>
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<h3>What is Lease Purchase Contract?</h3>
A Lease-Purchase Contract, also known as a Lease Purchase Agreement. A lease purchase agreement in real estate is a rent-to-own contract between a tenant and a landlord for the former to purchase the property at a later point in time. The renter pays the seller an option fee at an agreed-upon purchase price, giving them exclusive rights to buy the property.
Both parties agree to what the purchase price of the home will be at the end of the lease term. The agreement will likely include a stipulation that a portion of the monthly rent goes toward a down payment. The renter should be confident that they can secure a mortgage at the end of the lease, or else they forfeit the purchase option.
Learn more about Lease Purchase on:
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Answer:
(A) Rate earned on stockholder's equity=15%
(B) Rate earned on common stockhloder's equity= 16%
Explanation:
A company reports the following profitability analysis
Net income of $375,000
Preferred dividend of $75,000
Average stockhloder's equity of $2,500,000
Average common stockhloder's equity of $1,875,000
(A) The rate earned on stockholder's equity can be calculated as follows
= Net income/Average stockholders equity
= $375,000/$2,500,000
= 0.15×100
= 15%
(B) The rate earned on common stock holder's equity can be calculated as follows
= Net income-Preferred dividend/Average common equity
= $375,000-$75,000/$1,875,000
= $300,000/$1,875,000
= 0.16×100
= 16%
Hence the rate earned on stockholder's equity and common stockhloder's equity is 15% and 16% respectively.
