Answer:
We will have $6488.6 in our account in 6 years.
Explanation:
The rate is 6.1% but it is compounded daily which means that the effective annual interest rate will be different to the stated rate. In order to find the EAR we will use the formula
(1+(R/N))^N)-1
In this case R=6.1% and N is 365 as there are 365 days in a year which means there will be 365 compounding periods as it is compounded daily.
We will put these values in the formula.
(1+(0.061/365))^365)-1
=(1.000167^365)-1=1.062893-1=0.062893
The Ear is 6.289%
Now in order to find how much we will have in our account in 6 years will use the formula
Future value = Present value *(1+Ear)^Number of years.
Future value = 4,500*(1+0.06289)^6=6488.6
Answer:
11.86%
Explanation:
First we need to calculate the return on equity(Re).
re = rf + B(rm-rf)
re = 0.03 + (1.4)*(0.11-0.03) => 0.142 or 14.2%.
Now the formula for WACC is,
WACC = (re * %of Equity) + ((rd * %of Debt)(1-tax rate))
Hence this is calculated as,
WACC = (0.70*0.142)+((0.30*0.08(1-0.20))
WACC = 11.86% or 0.1186.
Hope this helps. Goodluck.
It has to be the product chain
Answer:
The correct words for the blank spaces are: risk avoidance; risk acceptance.
Explanation:
Risk avoidance refers to not taking any action related to risk. This is the most radical way of avoiding risks and implies missing all chances of obtaining benefits from investing. Risk acceptance requires the analysis of the losses and gains an investment carries. When the potential losses are smaller than the benefits of assuming the investment, it would be rational to go ahead and take the risk. The opposite happens if the potential losses are greater than the potential benefits.
Answer:
Formula Selling
Explanation:
Formula Selling -
It refers to the method where the presentation of the sales is designed in order to make the customers move from various stages of decision making like the develop interest , garb attention , build desire and secure action , is referred to as formula selling .
Some type of sequence are BANT , AIDA etc.
Hence , from the given scenario of the question ,
The correct answer is formula selling .