Answer:
Here the required rate of return is 14%.
Explanation:
Required rate of return can be defined as the minimum rate of return that an investor will accept for holding a company's stock, as a compensation for the risk which is associated with that stock. This concept is also used in corporate finance , where with the help of this profitability of an investment project is analyzed.
Formula for taking out required rate of return is -
Required rate of return = Risk free rate + Beta ( Market return - Risk free rate )
= 5% + 1.5 ( 11% - 5% )
= 5% + 1.5 ( 6%)
= 5% + 9%
= 14%
Answer:
-3.41%
Explanation:
The computation of the annual rate of return is shown below;
We use the formula:
Future value = Present value × (1 + rate of interest)^number of years
$10,710,500 = $12,738,500 × (1 + rate of interest)^5
($10,710,500 ÷ $12,738,500)^(1 ÷ 5) = (1 + rate of interest)
(1 + rate of interest) = 0.965913622
r = (0.965913622 - 1) × 100
= -3.41%
Answer:
The correct answer is unwillingness of borrowers to obtain loans from banks to invest in factories or expansion of the firm.
Explanation:
Solution
<em>Given that:</em>
Leakage problem occurs or happens within an economy when the money goes out of the economy, which leads to a loss in the economic value of goods and services, and also leads to loss in profits making.
This would lead to an unwillingness of borrower's to obtain loans from banks in the expansion of the firm or to invest in factories.
Hello!
The answer is
C. How much a currency is worth when it's exchanged with another country's currency.
Good luck!
