Answer:
the risk premium = return of the deposit - risk free deposit return
risk premium = 5.2% - 2.5% = 2.7% or $27 for a $1,000 CD
Besides the investment risk, Casey must also consider the inflation rate and taxes. The inflation rate lowers the real interest earned by Casey: real interest rate = nominal interest rate - inflation rate. And she must also find out how the return from the non-financial institution is taxed, if it can be taxed as capital gains or regular income.
Answer:
bad debt expense 18,000
Explanation:
bad debt 1% of credit sales:
180,000 x 1% = 18,000
When the adjustment is made base on sales, the current balance in the allowance for doubtful debts is irrelevant.
So no calculation is needed for those.
Two constraints to maximizing profit are cost of production and consumer demand.
Consumer demand is essential for revenue. Competition and budget can affect demand and put constraints to profit maximization. Cost of production can constraint profits maximization too because the higher the cost of raw material, the higher the cost of production will be, which in turn will affect the price of the product. This increase in price can also affect the demand.
The answer is then D.
Answer:
A. ($16,000)
Explanation:
The computation of the expected value of return equal to
= (Higher return × probability rate) - (Less return - probability rate)
= ($20,000 × 70%) - ($100,000 × 30%)
= $14,000 - $30,000
= - $16,000
For computing the correct value we have to deduct the tighter money conditions from the normal conditions.
Explanation:
Globalization at the organizational level can be understood as the integration of all systems that make up a company, including the macro environment.
Understanding the concept of globalization in business makes it possible to understand that the company to be successful in a foreign market must align its strategy in order to conquer the local market, it is important to carry out research and development to understand what the target audience of certain region wants to consume, in addition to respecting the culture, behavior and values of each region.
Currently, in globalized companies, the focus of HRM is to ensure that the company receives new employees and that existing employees have a global posture that prioritizes respect, ethics, company identity, culture and is flexible and open to work in a company that adopts global management, where there are important interactions with other countries for the success of the business.
