Answer:
The risk free rate is 3.325%
Explanation:
The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
- (rM - rRF) gives us the risk premium of market
We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,
Let rRF be x.
0.1185 = x + 1.24 * (0.102 - x)
0.1185 = x + 0.12648 - 1.24x
1.24x - x = 0.12648 - 0.1185
0.24x = 0.00798
x = 0.00798/0.24
x = 0.03325 or 3.325%
Answer:
Revealed by.
Explanation:
Revealed is to make (previously unknown or secret information) known to others.
Answer:
$4,000
Explanation:
The computation of interest expense to be recognized on July 1 is shown below:-
Here the interest is paid in semi-annually,
so, the interest rate per period= 10% ÷ 2 = 5%
and the number of periods = 5 × 2 = 10
Bond premium = Five year bonds - Issued amount
= $92,000 - $88,000
= $4,000
Bond premium amortization per period = Bond premium ÷ Number of periods
= $4,000 ÷ 10
= $400
Interest expense to be recognized on July 1 = Issued amount × Interest rate per period) - Bond premium amortization per period
= ($88,000 × 5%) - $400
= $4,000
Answer:
59 orders
Explanation:
For computing the how many rolls should order at a time, first we have to determine the economic order quantity which is shown below:
The computation of the economic order quantity is shown below:
= 
where,
Carrying cost = $875 × 20% = $175
And, other items values would remain the same
ow put these values to the above formula
So, the value would be equal to
= 
= 50.71 units
Now The number of orders would be equal to
= Annual demand ÷ economic order quantity
= $3,000 ÷ 50.71 units
= 59 orders
Yes you will be able to afford your monthly payment 20+20=40+10=50+60=110+650 will be 760 out of 2100 so yes you can afford it