Answer:
CCC's new required rate of return is 16.5%
Explanation:
in the first we need to determine the risk free rate using the Capital Asset Pricing Model formula of Miller and Modgiliani as shown below
required return=Rf+beta*(average market return-Rf)
Rf is the risk free rate that is unknown
Beta is 1.5
average market return is 10%
required rate of return is 12%
Rf?
12%=Rf+1.5*(10%-Rf)
12%=Rf+15%-1.5Rf
1.5Rf-Rf=15%-12%
0.5Rf=3%
Rf=3%/0.5
Rf=6%
Average rate of 10% has now increased by 30% i.e 10%*(1+30%)=13%
Required rate of return=6%+1.5*(13%-6%)
=6%+1.5*7%
=6%+10.5%=16.5%
Answer:
$12,032.68, since Andy is responsible for the interest on the loan that accrues before he starts making payments. - APEX
Explanation:
Answer:
c. 12%; 15.7%
Explanation:
The computations are shown below:
For expected rate of return:
= (Weightage of risky asset × return of risky asset) + (Weightage of treasury bill × return of treasury bill)
= (0.70 × 0.15) + (0.30 × 0.05)
= 10.5% + 1.5%
= 12%
For standard deviation:
= Weightage of risky asset × (variance ^ half)
= 0.70 × (0.05 ^ 0.5)
= 15.7%
Answer:
It is not a legitimate excuse for engaging in unethical projects
Explanation:
Ensuring scientific integrity and avoiding professional misconduct is a collective role of Scientists and Engineers. Every professional, engineers inclusive, must ensure they stay committed and faithful to the oath of practice they have sworn to. Engineering is an important and learned profession. As members of this profession, engineers are expected to exhibit the highest standards of honesty and integrity. Engineers must perform under a standard of professional behavior that requires adherence to the highest principles of ethical conduct.
Every engineer must be familiar with the code of ethics of the profession, abide by it, and report erring professionals for punitive measures to be taken rather than giving excuses for carrying out an unethical project.
The concept of responsible conduct emphasizes ethical decision making, professional responsibilities, and strict adherence to professional standards and values. Every engineer and professional must take into cognizance all the responsible conducts required by their professions
Most contracts like this will not change based on the borrowers financial situation. In this case, Kelsey and Cody will still be responsible for paying the debt they owe. Several things will happen if they do not pay:
1. the debt will be sent to a collections agency
2. This will cause a derogatory mark on their credit history.
