Answer:
c. 11.05%
Explanation:
The computation of firm's required return is shown below:-
First we need to find out the Market Risk Premium for computing the firm's required return.
Using CAPM, we calculate Market Risk Premium
Expected Future Market Rate of Return = Risk Free Rate on T-Bond + Beta of the Market × Market Risk Premium
10% = 6.5% + 1 × Market Risk Premium
Market Risk Premium = (10% - 6.5%) ÷ 1
= 3.5%
Required Rate of Return = Risk Free Rate + Beta of the Stock × Market Risk Premium
= 6.5% + (1 + 3.00%) × 3.5%
= 6.5% + 1.30 × 3.5%
= 11.05%
Answer: Equal Opportunity and Responsibility.
Explanation: Every successful organization share in common: a common goal they target to achieve, proper coordination, and hierarchy of authority.
In most organizations authority is NOT equal and each individual has their key roles they perform to ensure success is achieved.
There is always a leader or a team of leaders and those following their lead.
Answer:
$495,614.80
Explanation:
The interest paid will be the total amount paid minus the principal amount.
The amount paid after 30 years using compound interest will be
the future amount. Interest rate is compounded monthly . There are 12 compounds in a year, equivalent to 360 after 30 years.
interest is 4.35 per year or 4.35/12 per month
FV = P x ( 1+ r)N
Fv = 185,000 x ( 1+ 0.3625/100)360
Fv = 185,000 x (1.003625)30
Fv = 185,000 x 3.67899783
Fv = 680,614.60
Interest paid will be = $,614.80 - $185,000.00
=$495,614.80
Answer:
If Victoria purchases insurance, she will have (4000-1200) = $2800 for consumption. Now even if she has an accident, she will not have to incur any medical costs.
So the expected value of Victoria’s consumption should she purchase the insurance cover is $2800.
Expected utility should Victoria purchase insurance will be equal to the total utility as Victoria will surely have 3100 for consumption.
E(U )= 
E(U) = 621 (rounded off to nearest integer)
Answer:
B
Explanation:
Goal Displacement is a situation in which the original goals of the organisation have been overtaken by the new goals which have been developed during the course of time. Goal displacement can happen for many reasons and at many levels.Goal displacement occurs when resources are used for a purpose other than for the growth of the organisation.
