Answer:
B. The lender would benefit.
Explanation:
Based on the information provided within the question it can be said that in this scenario the one who would benefit from a lower inflation rate would be the lender. That is because by there being a lower inflation rate it means that the money that the borrower needs to pay back the loan does not have the buying power he predicted it would have when he borrowed it. Meaning that he would need to pay more money to the lender than originally anticipated.
Answer:
Austere Corporation
The amount of the proceeds from the bond that should be recorded as an increase in liabilities is:
= $320,100.
Explanation:
a) Data and Calculations:
The bonds issued = $330,000 at 106
Number of $1,000 bonds issued = 330 ($330,000/$1,000)
Market value of each warrant = $3
Proceeds from issue of bond = $330,000*106% = $349,800
Fair value of warrant issued = 330*30*$3 = $29,700
The bond issue liability = $349,800 - $29,700 = $320,100
Answer:
it might be B but I'm not sure
Expected return of the stock is greater than 12%.
Using formula, Risk free rate + beta (market risk rate - risk free rate)\
= 2% + 2.0 (7%-2%)
= 13.6 - 0.4* risk premium
Risk premium of a stock is greater than 12%.
A stock's total return takes into account both capital gains and losses as well as dividend income, as opposed to a stock's nominal return, which only displays its price movement. In addition to considering the actual rate of return, investors should consider their ability to withstand the risk involved with a given investment. An investment's return on investment (ROI) provides a general indication of its profitability. The return on investment (ROI) is calculated by subtracting the investment's initial cost from its final value, dividing the result by the cost of the investment, and finally multiplying the result by 100.
Note that the full question is:
If the market risk premium is 7%, the risk-free rate is 2% and the beta of a stock is 2.0, what is the expected return of the stock?
A. less than 12%.
B. 12%.
C. greater than 12%.
D. cannot be determined.
To learn more about returns: brainly.com/question/24301559
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5 days, but it depends on rules of where you are. It can be 10, or maybe even as high as 90.
