Answer:
Option A, 20% more, is the right answer.
Explanation:
Given the beta value of stock A = 1.2
The beta value of stock B = 1
The beta value of stock A is greater than the stock B. Here, we can see that the beta of stock A is large by 20% as compared to the beta of stock B.
It can be calculated as = (Beta of stock A – Beta of stock B) / Beta of stock B
= (1.2 – 1) / 1
= 0.2 or 20%
Therefore, the return will also be more than 20%.
Thus, option A. 20% more is correct.
The present value of the bond payable is $120,130.
<h3>What is the present value?</h3>
The present value of the bond is the sum of the the bonds discounted cash flows.
Present value can be calculated using a financial calculator:
- Cash flow each year from period 1 to 10 : 11% x 100,000 = 11,000
- Cash flow in period 20 : 100,000
- Interest rate = 8%
Present value = $120,130.24
To learn more about present value, please check: brainly.com/question/26537392
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Answer: Future Value FV = 169,500
Explanation:
The information given to us are;
Present value PV = 113000
Interest R = 10% = 0.01
number of years T = 5
Future value FV = ?
So using the formula
FV = PV * [1 + (R * T)],
We input our value
FV = 113000 * [ 1 + ( 0.1 * 5) ]
FV = 113000 * [ 1 + 0.5]
FV = 113000 * 1.5
FV = 169500
Answer:
Option C Incorrect; adjusting for price changes, his salary is less than his dad's salary
Explanation:
Adjustment to price changes = (Amount received n years ago divided by Price Index n years ago) * Price Index today
Adjustment To price changes = ($28,000 / 110.8) * 180.5 = $45613.7
The amount $28,000 is worth $45,613.7 in todays value which means that if we adjust for price changes, Dave is incorrect because his salary is worth less by an amount $613.7 from his father's salary.
Answer:
i don't think your able to...
