Assessing one's personal entrepreneurial competencies also known as PECs is very important to evaluate your weakness and strengths when it comes to entrepreneurship. By doing this, you will be able to fix your weaknesses and strengthen your strengths for the advantage of the activity.
Answer:
<em>For the 2 year treasury securities it was 7%, and for a 3 year treasury securities it was 7.33%</em>
Explanation:
<em>From the example, </em>
<em>The real risk rate of interest is= 4%</em>
<em>The inflation expectation of this year=2%</em>
<em>Inflation expected for the next 2 years=4%</em>
<em>Maximum risk premium=0</em>
<em>Therefore</em>
Rt= r* + (Inflation/ year)
Rt2= 4 + (2 + 4 / 2) = 7%
<em>Rt3= 4 + (2 + 4 / 3) = 7.33% </em>
Answer:
What is the budgeted cash received from customers?
Explanation:
cash received from customers = total sales revenue + beginning accounts receivable - ending accounts receivable
- total sales revenue = 20,000 x 205 = $4,100,000
- beginning accounts receivable = $40,000
- ending accounts receivable = $20,000
cash received from customers = $4,100,000 + $40,000 - $20,000 = $4,120,000
Answer:
Risk-free rate = 8%
Explanation:
<em>The Capital Asset pricing Model (CAPM) can be used to determined the beta. </em>
<em>According to the Capital Asset pricing Model the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio.</em>
<em> These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market.
Using this model, we can work out the risk free rate as follows:
DATA
Ke-20%
Rf- ?
β-1.2
Rm- 18%
substituting, we have
0.2= Rf + 1.2× (0.18-Rf )
0.2 = Rf + 0.216
- 1.2Rf
collecting like terms
1.2Rf-Rf= 0.216 - 0.2
0.2Rf = 0.016
Dividing both sides by 0.2
Rf =0.016/0.2=0.08
Rf = 0.08
× 100 = 8%
Risk-free rate = 8%
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Partnership
b) C Corporation
c) S Corporation
d) Limited Liability Company
e) Limited Liability Partnership
And the correct answer is the option D: Limited Liability Company.
Explanation:
To begin with, the name of <em>"Limited Liability Company" </em>refers to a type of form of business, in the field of business law, that is helpful to adapt and use for some owners regarding the particular characteristics that this form gives to them. So once said that, this type of business form has the characteristics of both a corporation and a partnership so that means that it is quite flexible and can adapt depending on the situation that the owner is having. Moreover, one of the most important aspects of this type of form is the fact that the owner has a limited liability to what happens in the company so that means that his private assets are secure under this form.
