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hodyreva [135]
3 years ago
6

The discount rate includes ________ in the basic valuation model.

Business
1 answer:
Lana71 [14]3 years ago
4 0

Answer:

c. risk

Explanation:

The discount rate usually stands for the opportunity cost of investing elsewhere or the cost of sourcing finance. therefore, it includes a risk component.

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The reason many homeowners cannot sell their homes when house pricing is falling is because
lozanna [386]
It is because then people are already buying houses, and often homeowners do not get a lot of money in return.
6 0
4 years ago
You have just obtained a mortgage to purchase your home. The​ ________ that you paid to obtain the loan are charges that must be
garik1379 [7]

Answer:

Points

Explanation:

Mortgage points or discount points are prepaid interest available when obtaining a mortgage.

When a lender charges the borrower points he is in effect increasing the yield on the loan above the interest rate agreed on the loan.

Borrowers can also offer points to the lender to obtain a reduced interest rate and reduced monthly payment in exchange for upfront payment of points.

8 0
4 years ago
Management is considering a bonus system to increase production. One suggestion is to pay a bonus on the highest 5% of productio
Marina CMI [18]

Answer:

4099

Explanation:

we have mean = 4000

σ = 60 units

lets make X  = weekly production

z = X-μ/σ

z = X-4000/60

At 0.05 level of signficance, z critical value = 1.645

we put this value into the equation

z = \frac{x-4000}{60} \\1.645 = \frac{x-4000}{60}

we cross multiply from here

60 * 1.645 = x - 4000

98.7 = x-4000

x = 4000 + 98.7

x = 4098.7

≈ 4099

the bonus would be paid on 4099 units

7 0
3 years ago
Historical returns (1900-2015) suggest that in a year when Treasury bills offered 7.5 the approximate return on portfolio of com
FinnZ [79.3K]

Answer: 15%

Explanation:

The expected return on stock is expressed as;

Expected Return on Stock  =  Treasury Bill Yield  +  Risk Premium

Historical returns from 1900 - 2015 generally show the risk premium on stock to be 7.6% so;

Expected Return on Stock = 7.5% + 7.6%

= 15.1%

= 15%

7 0
3 years ago
The CEO of Coffman Enterprises wants to export products to foreign markets.However, top executives at Coffman are concerned that
katrin2010 [14]

Answer:

D) ownership advantages

Explanation:

Based on the scenario being described it can be said that the executives are most likely worried that Coffman lacks ownership advantage. This term refers the competitive advantage that exists for a company that is attempting to enter a foreign market. Such as Coffman Enterprises is trying to do, but since they are concerned about the fierce competition, then they are stating that Coffman may not have a competitive advantage in that market to deal with the existing competitors.

4 0
4 years ago
Read 2 more answers
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