Answer:
b.The IRR is equal to 25.85%
Explanation:
Firstly we are given that i consider investing $100000 which will in this problem be our Cinitial which is the initial investment for the project.
Then now given the risk of this project, my cost of capital is 20% so then we will compare this to the IRR and see if i can accept the project or not if the cost of capital is greater than the IRR than its not good to invest on the project but if the cost of capital is less than the IRR then the this will be a good investment as the cost of capital also checks the opportunity cost.
The future payment cash flows which is $500000 so we will use the following formula:
NPV = (cash flow)/(1+IRR)^n - initial investment
so we find the present value of the cash flow of the investment and subract the initial investment which will give us a zero cause the present value of the cash flow is equal to the initial investment therefore( n is the period of cash flows):
0= $500000/(1+IRR)^7 - $100000 transpose the initial investment and solve for IRR.
$100000(1+IRR)^7= $500000 then divide both sides by $100000
(1+IRR)^7 = 5 then find the 7nth root of both sides to eliminate the exponent of 7
1+ IRR = ![\sqrt[7]{5}](https://tex.z-dn.net/?f=%5Csqrt%5B7%5D%7B5%7D)
1+IRR = 1.258498951 then subtract 1 both sides to solve for IRR
IRR = 0.258498... then multiply by 100 as IRR is a percentage
IRR= 25.85 % rounded off to two decimal places which is the answer b
The penalty in that case was just around $4 million.
$4 mil/$43 mil = .093 %
Answer:
Semi-strong form efficiency.
Explanation:
Semi-strong form efficiency contends that security prices have factored in publicly-available market and that price changes to new equilibrium levels are reflections of that information. It is considered the most practical of all Efficient Market Hypothesis(EMH) hypotheses but is unable to explain the context for material nonpublic information (MNPI). It concludes that neither fundamental nor technical analysis can be used to achieve superior gains and suggests that only MNPI would benefit investors seeking to earn above average returns on investments.
The answer is: because every day there is more opportunities opening up
You will never know where a company will post a job opportunities that provide better conditions or salaries compared to the job that you currently had. Because of this, you need to keep expanding your networks and setting up routine job search schedule.
Answer:
Balance of Stockholder's Equity at December 31 is $1,910,000.
Explanation:
This will appear as follows
Idaho Company
<u>Details $ </u>
Stockholder's Equity:
Common Stock 525,000
Preferred Stock 500,000
Additional Paid-In Cap. - Common Stock 625,000
Additional Paid-In Cap. - Preferred Stock 50,000
Treasury Stock (40,000
)
Retained Earnings <u> 250,000 </u>
Balance at December 31 <u> 1,910,000 </u>
