The risk-free rate is 3%. A market risk premium in finance and economic is used to measure how much the level of risk.
A risk premium means a measure of excess return that is used by an individual to compensate being subjected to an improved degree of risk. A risk premium is the common definition being the expected risky return less the risk-free return.
To find the amount of risk free rate, we can calculate it use this formula:
ER = rf + β (rm - rf)
Where,
ER = Expected Return = 14.7% = 0.147
rf = Risk free rate
β = beta = 1.3
rm = Return market = 12% = 0.12
Hence,
0.147 = rf + 1.3 (0.12 - rf)
0.147 = rf + 0.156 - 1.3rf
0.147 - 0.156 = -0.3 rf
-0.009 = -0.3 rf
rf = 0.03
Thus, the risk-free rate is 3%.
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The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is:.
The record of accrued vacation privileges in Journal entry will includes a Debit of Cash& Interest Expense and Credit of Notes Payable
What is a Journal entry?The Journal entry helps to record all basic financial transaction.
In conclusion, the record of accrued vacation privileges in Journal entry will includes a Debit of Cash& Interest Expense and Credit of Notes Payable
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Gross wage refers to the wage an employee earns before deductions are subtracted.
The statement is true.
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For what period of time are taxpayers expected to maintain records generally related to their income tax returns?.
Taxpayers are expected to maintain records generally related to their income tax returns for a period of at least three years from the original tax filing date. This is the minimum requirement for keeping records.
The IRS may choose to audit tax returns for up to six years after the original tax filing date, so it is recommended that taxpayers keep records for at least six years to be safe. If a taxpayer fails to keep proper records, they may be subject to penalties or even criminal charges. The records that taxpayers are required to keep may include documents such as receipts, invoices, canceled checks, and bank statements. These documents should be kept in a safe place, such as a fireproof safe or a safety deposit box. Taxpayers should also keep a copy of their tax return and all supporting documents for their own records. In addition to federal income tax, taxpayers should also keep records related to state and local income taxes.
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G Brown has the following items in her balance sheet as on 30 April 20X8: Capital £18,400;
Creditors £2,100; Fixtures £2,800; Car £3,900; Stock of goods £4,550; Debtors £2,780; Cash at bank
£6,250; Cash in hand £220.
During the first week of May 20X8
(a) She bought extra stock for goods £400 on credit.
(b) One of the debtors paid her £920 by cheque.
(c) She bought a computer by cheque £850.
Answer:
b
Explanation:
Jenna's goal is to open a new retail store.To do so,she figures out that she needs to find a location,obtain financing lease the space, design the space, and launch the store opening
The planning phase is the phase that is being executed from the description that we have been given here.
What is the phase of the organizing processThe manager is executing the planning phase of the organizing process. Specifically, the manager is developing a plan for opening a new retail store, which includes tasks such as finding a location, obtaining financing, leasing the space, designing the space, and launching the store opening.
This planning process is essential for organizing resources, tasks, and activities in a logical and efficient manner to achieve the desired goals and objectives. Once the plan is established, the manager can move on to the next stage of the organizing process, which involves implementing the plan and managing resources to achieve the desired outcomes.
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A corporation has reported earnings per share of $1.00. If it pays a dividend of $.75 per share, the effect of the remaining $.25 will be to:________
A) increase retained earnings.
B) increase working capital.
Answer:
A. Increase retained earnings
Explanation:
The net income earned by a company in a particular year is always used for two purposes and treated in these ways- it is either paid out as dividends or retained in the business and transferred to the retained earning account or both. Thus, if out of $1.00 earnings per share, which is basically the net income earned per share, $0.75 is paid out as dividends per share, the remaining $0.25 is retained in the business and transferred to the retained earnings account.
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Answer:
wassup
Explanation:
ABC stock is currently selling for $120. The exercise price of the call option is $125. Using a one-period binomial model, calculate the price of the call option assuming an interest rate of 3% per year. Assume further that over the next year, the stock price will either increase by 10% or decrease by 10%. What is the price of the call option? Show detailed work
The probability weighted average of the interest rate future values at the end of each of the three periods is used to determine this, and the future values are then discounted back to the present using the interest rate.
The tree is built using the current stock price and a simulation of the up and down movements over the course of the three periods using the provided probability and percentage changes.
Each end node's option value is determined before being processed back up the tree to the starting node. The starting node's computation serves as the end option value.
The stock's annual payout range is $27 - $17 = $10.
If the stock price is $27 when the option expires, its value will be =$27-$22 =$5.
If the stock price is $17, the option will also have no value.
The stock option has a payment range of $5 and $0;0 = $5.
To determine the amount of stock shares, balance the range:
$5/10 = 0.5 Option range/Stock range
The stock option payoff for 0.5 shares will be either $13.5 or $8.5. The payout for the portfolio and options will be $13.5- $5, which equals $8.5, or $8.5 $0; 0 = $8.5.
PV = $8.5/ (1+) is the present value of $8.5 at the daily compounding risk-free rate.
Complete question:
ABC stock is currently selling for $120. The exercise price of the call option is $125. Using a one-period binomial model, calculate the price of the call option assuming an interest rate of 3% per year. Assume further that over the next year, the stock price will either increase by 10% or decrease by 10%. What is the price of the call option? Show detailed work?
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Is the ad trying to get people to do something? If so, what is it trying to get people to do? If it isn't trying to get people to do something, what do you think the point of the ad is? (1-5 sentences. 2.0 points)
Answer:
I think the ads are weird-they are trying to get you to get brainly premium-
Explanation:
Melissa has bought a $2 lottery ticket every week for the past 30 years. This week she won for the first time -$2,000 in her state lottery. Compare these winnings to her total investment, and explain if the lottery was a worthwhile endeavor for her.
The amount of money Melissa invested in lottery tickets over the past 30 years is $3,120. Melissa's total investment in lottery tickets over the past 30 years was $3,120, according to the calculations. She won $2,000 this week for the first time.
Melissa spent $1,120 more on lottery tickets over the last 30 years than she won this week. LONG ANSWER:The amount of money Melissa invested in lottery tickets over the past 30 years is $3,120. Melissa spent $2 on the lottery every week for the past 30 years, according to the problem. That means she has spent $2 * 52 weeks * 30 years = $3,120. Melissa's total investment in lottery tickets over the past 30 years was $3,120, according to the calculations. She won $2,000 this week for the first time.
Subtract the total amount spent on lottery tickets from the prize money to determine whether the lottery was a worthwhile investment for Melissa. $2,000 (prize money) - $3,120 (total spent on lottery tickets) = -$1,120. Melissa spent $1,120 more on lottery tickets over the last 30 years than she won this week. So, it can be concluded that the lottery was not a worthwhile endeavor for Melissa.
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__________ services act as a middleman, allowing individuals to securely send and receive money. select all that apply.
The service that serves as middleman which gives room for individuals to transact by sending or receiving money is regarded as P2P.
Peer-to-peer can be regarded as a networking system which helps in partitions tasks or workloads among peers.It helps for easy transaction whereby two or more people are involved in series of business.In peer-to-peer (P2P) can as well be explained as group of computers which are linked together for processing of data.
Therefore, P2P helps to connect two or more people together for easy transaction.
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Ella presented her master's thesis to her supervising professor. She had linked many data tables into her PowerPoint
presentation. A year later, she was asked to present her findings at a conference. When she tried to present her slides,
many of her links had broken. Which best explains what happened to her links?
Answer:Stolen
Explanation:somebody prolly stole her work for there own keep your digital stuff save
Answer:
She renamed a folder or file, and the link can no longer be found.
Explanation:
who was the first person given credit for proposing national parks?
hellp! WILL GIVE 30 POINTS!!
Alexis and Damian are both taking a course on picking a career. They go to the same art club so they both know what they enjoy doing. Surprisingly, Alexis and Damian might find careers in the Architecture and Construction Career Cluster that allow them to express themselves through art. Create a list of possible jobs in this cluster that could use an artistic person and explain a task that each job does that the two students might particularly enjoy.
*Dont answer for points, cuz I've gotten scames so many times :/
Answer:
A few jobs that express how you feel through art are house remodeling because you can decorate with things that make you happy or that show how you feel, professional painter because you can paint how you feel, and a gardener because you make the garden look like something that expresses how you feel.
Explanation:
Hope this helps! Just make sure to edit it a little so that you don't get in trouble! :)
Criticism about boards of directors has led more companies to make sure the people on their boards are:
Criticism about boards of directors has led more companies to make sure the people on their boards are: Independent managers.
Who are independent managers?Independent managers are those managers who are part of LLC's board of directors but does not partake in the day to day running of the operation of the company.
This in turn means that they are independent of Limited Liability Company's ownership because they are not part of the company entity team and they have no any form of relationship with a company.
Inconclusion criticism about boards of directors has led more companies to make sure the people on their boards are: Independent managers.
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A Bank with the following capital levels: common equity of 47,000, Tier 1 of 38,000, Tier 2 of 17,000. If total assets are 850,000 and risk adjusted assets are 650,000, the capital classification of the bank is
The capital classification of the bank would be "Adequately Capitalized" as its Tier 1 capital ratio.
To determine the capital classification of the bank, we need to compare its capital levels to the risk-adjusted assets. The capital classification is typically based on regulatory requirements and ratios set by the relevant financial authorities.
One common capital adequacy ratio used for classification is the Tier 1 capital ratio.
The Tier 1 capital ratio is calculated by dividing Tier 1 capital (including common equity) by risk-adjusted assets. Let's calculate the Tier 1 capital ratio:
Tier 1 capital ratio = (Tier 1 capital / Risk-adjusted assets) * 100
In this case:
Tier 1 capital = 38,000
Risk-adjusted assets = 650,000
Tier 1 capital ratio = (38,000 / 650,000) * 100
= 5.846%
Now, let's determine the capital classification based on the Tier 1 capital ratio:
Well-Capitalized: Tier 1 capital ratio ≥ 6%
Since the calculated Tier 1 capital ratio is 5.846%, it does not meet the well-capitalized threshold.
Adequately Capitalized: Tier 1 capital ratio ≥ 4%
The calculated Tier 1 capital ratio is above the adequately capitalized threshold, which is 4%.
Undercapitalized: Tier 1 capital ratio < 4%
Since the calculated Tier 1 capital ratio is above 4%, the bank is not classified as undercapitalized.
Therefore, based on the given information, the capital classification of the bank would be "Adequately Capitalized" as its Tier 1 capital ratio exceeds the minimum regulatory requirement of 4%.
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Cost Approach to Value
There are five basic steps to the cost approach:
1. Estimate the value of the site as if vacant.
2. Estimate the reproduction cost or replacement cost (new) of all the improvements (excluding any included as part of the site value).
3. Estimate accrued depreciation from all causes (physical deterioration, functional obsolescence, and external obsolescence).
The cost approach to value is one of the three main approaches used in real estate appraisal.
It is based on the principle of substitution, which states that a rational buyer will not pay more for a property than the cost of acquiring an equally desirable substitute property. The approach involves five basic steps, starting with estimating the value of the site as if vacant, followed by estimating the reproduction or replacement cost of all the improvements, and then estimating the accrued depreciation from all causes.
The final step involves subtracting the total accrued depreciation from the replacement cost to arrive at the property's value. The cost approach is particularly useful when valuing new or recently constructed properties that do not have a significant sales history.
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If the account is interest bearing, how would you account for the interest when you reconcile your account?
1. subtract the interest from your running balance
2. add the interest to your running balance
3. forget about it since it is probably a small amount
4. keep a separate entry for interest
Answer:
the answer is 1 I do in fact think
The account for the interest when you reconcile your account is subtract the interest from your running balance Option(1) is correct. Stores have filled unequivocally as of late, despite the fact that there has been no development in interest-bearing protections.
What is Interest Bearing?An interest-bearing record is a kind of financial balance that pays the client an interest rate in return for them storing their cash at the bank.
The return and interest rate offered will change by bank and rely upon the record agreements. They can likewise change over the long run. There are various reasons you ought to open an interest-bearing record.
Not exclusively will you bring in cash from your reserve funds, yet you can keep it where you will not be enticed to spend it. It's dependably really smart to set aside cash and keeping one or even a few records that procure you interest is a shockingly better thought.
Families contribute around two-fifths of their monetary resources in interest-bearing resources. These resources are prevalently held straightforwardly in stores and furthermore through superannuation and other venture reserves.
Therefore Option(1) is correct.
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6
A company that is located in the U.S. and sells its product to customers in Mexico is participating in what?
A. Demographics
B. News media
C. The global marketplace
D. Web marketing
Answer:
c
Explanation:
the global marketplace
Answer:
C
Explanation:
got it right on Edge
Bennett Enterprises issues a $612,000, 30-day, 8%, note to
Spectrum Industries for merchandise inventory.
Assume a 360-day year. If required, round your answers to the
nearest dollar.If an amount box
Bennett Enterprises issues a $612,000, 30-day, 8%, note to Spectrum Industries for merchandise inventory. The formula for calculating the amount of interest on the note is given as follows.
Interest = Principal × Rate × Time For this problem: = $612,000 Rate = 8% (expressed as a decimal, 0.08)\(Time = 30 days ÷ 360 days\) (since a year has 360 days in this problem) = 1/12Therefore, the interest on the note can be calculated as follows:\(Interest = $612,000 × 0.08 × 1/12\)Interest = $4,080.
The interest on the note is $4,080.Now, the total amount owed to Spectrum Industries after 30 days, including principal and interest, can be calculated as follows:\(Total amount owed = Principal + Interest Total amount owed = $612,000 + $4,080\)Total amount owed = $616,080.
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When you put a check you received in the bank, you have immediate access to the money.
True or False.
Answer:
this is true hope this helps
Explanation:
What type of factors of production would you need to provide services to your clients?
The idea cited is Factors of production, which are the inputs used to supply an amazing or carrier with the intention to produce income. The answer is land, labor, entrepreneurship, and capital.
The four factors of production namely land, labor, capital, and entrepreneurship can be viewed as part of the economy. The land has a broad definition as a factor of production and can take many forms, from agricultural land to commercial real estate to the resources available on a given piece of land.
Labor refers to the effort a person puts into marketing a product or service. Capital generally refers to money.
Instead, it facilitates the processes used in production and allows entrepreneurs and contractors to purchase capital goods or land or pay wages. Entrepreneurship is the secret ingredient that brings together all the other factors of production into a product or service for the consumer market.
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The annual inflation rate is expected to be 5 percent over the next 3 years. Juan plans to take out a 3-year loan to purchase a car. If Juan decides not to take out a loan if the real interest rate exceeds 3 percent, the highest nominal interest rate he is willing to pay is:
The highest nominal interest rate he is willing to pay is 8.15%.
The highest nominal interest rate that Juan is willing to pay can be determined using the Fisher equation. The Fisher equation postulates that the nominal interest rate is a function of the real interest rate and the inflation rate.
Fisher effect equation : ( 1 + nominal interest rate) = (1 + real interest rate) x (1 + inflation rate)
(1.03) x (1.05) = ( 1 + nominal interest rate)
( 1 + nominal interest rate) = 1.0815
Nominal interest rate = 1.0815 - 1
Nominal interest rate = 8.15%
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based on the information provided in the case study for ron and sandy peterson, what is the total amount in additional standard deductions allowable in 2022? a) $1,650 for lisa b) $1,300 for victoria c) $3,300 in total for lisa and victoria d) $0
The correct answer is option b, $1,300 for Victoria.
Based on the information provided in the case study for Ron and Sandy Peterson, the total amount in additional standard deductions allowable in 2022 is $1,300 for Victoria (option b). This is because Victoria is blind and is eligible for an additional standard deduction of $1,300.
To arrive at this answer, we need to consider that the standard deduction is a set amount that reduces taxable income. In 2022, the standard deduction for married couples filing jointly is $25,100. However, since Victoria is blind, she qualifies for an additional standard deduction. This additional amount is $1,300.
Therefore, the total amount in additional standard deductions allowable in 2022 is $1,300 for Victoria (option b).
To summarize:
- Option a, $1,650 for Lisa, is incorrect as Lisa's standard deduction is not mentioned in the case study.
- Option b, $1,300 for Victoria, is the correct answer.
- Option c, $3,300 in total for Lisa and Victoria, is incorrect as Lisa's standard deduction is not provided.
- Option d, $0, is incorrect as Victoria is eligible for an additional standard deduction due to her blindness.
In conclusion, the correct answer is option b, $1,300 for Victoria.
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Based on the information provided in the case study for Ron and Sandy Peterson, the total amount in additional standard deductions allowable in 2022 is $3,300 in total for Lisa and Victoria (option c).
To arrive at this solution, we need to consider the standard deduction for 2022, which is $12,550 for married couples filing jointly. In the case study, it is mentioned that Lisa and Victoria are Ron and Sandy's dependents. In 2022, each dependent is allowed an additional standard deduction of $1,650.
Since Lisa and Victoria are both dependents, we can multiply the additional standard deduction amount by the number of dependents, which is 2 in this case.
$1,650 x 2 = $3,300
Therefore, the total amount in additional standard deductions allowable in 2022 is $3,300 for Lisa and Victoria.
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Why do internal users need financial data?
A. to make business decisions and compare business performance with previous years
B. to invest in the business’s stocks
C. to invest in stocks and make business decisions
D. to analyze the risk involved in lending money to the business
E. to understand the risk involved in lending resources to the business
Answer:
C. to invest in stocks and make business decisions
Is it possible for everyone to agree on what is in ""the common good""? How should we make decisions that concern natural resources?
Answer:
Follows are the solution to this question:
Explanation:
The necessary resources, irrespective of human actions could be defined as natural resources. Wind, light, water, land, rock, plants, animals, and coal power were common examples of natural resources.
For the development of any country, the resource is important. For instance, energy sources are necessary to generate power so, we need mineral reserves for industrial development.For the population increasing it is important to preserve them, that's why we decide because each person has a different viewpoint so, they can't be unanimous agreement.a firm has cash of $100,000, accounts receivable of $1,200,000, inventory of $4,000,000, retained earnings of $6,000,000, and current earnings of $1,000,000. legally, the firm could payout dividends in the amount of_____, but may jeopardize the operation of the firm.
To calculate the maximum amount of dividends that the firm can legally pay out, we need to consider the retained earnings and current earnings.
Step 1: Identify retained earnings and current earnings
- Retained earnings: $6,000,000
- Current earnings: $1,000,000
Step 2: Calculate the total amount available for dividends
Total amount available for dividends = Retained earnings + Current earnings
Total amount available for dividends = $6,000,000 + $1,000,000
Total amount available for dividends = $7,000,000
So, legally, the firm could pay out dividends in the amount of $7,000,000. However, doing so may jeopardize the operation of the firm, as it could deplete the company's cash and other resources needed for daily operations or future investments.
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write a short response paragraph explaining how a credit score could contribute to keeping someone caught in a cycle of poverty
Answer:
A credit score is a numerical representation of a person's creditworthiness, which lenders use to determine their ability to repay loans. Unfortunately, people with low credit scores may find it difficult to access credit, which can make it challenging to obtain loans to start a business, purchase a home, or cover emergency expenses. This lack of access to credit can make it challenging for people caught in the cycle of poverty to break free, as they may not have the resources to address urgent financial needs or invest in income-generating opportunities. Additionally, without access to credit, they may turn to predatory lenders or high-interest credit cards, further perpetuating the cycle of poverty. Therefore, a low credit score can contribute to keeping someone caught in a cycle of poverty by limiting their financial options and making it difficult to improve their economic situation.
Explanation:
QUESTION 2 of 10: Your Maitre'd's starting salary is $38,000/year. You have promised her an 8% raise per year for her first 5 years. What yearly salary be after 5 years? a) $23,725 b) $42,114 c) $49,189 d) $55,834
Answer:
D) 55,834
Explanation:
What is insurance?
ANSWER PLSSS
Answer:
is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement
Explanation: