Answer:
Total amount of dividends paid over the last three years is $20500
Explanation:
The net income of the company is either retained in the company or paid out as dividends. To calculate the value of the ending retained earnings, we use the following formula,
Ending balance = Beginning balance + Net Income - Dividends
We first need to calculate the total net income for the 3 year period. The total net income for the 3 year period is, 3 * 6500 = $19500
Plugging in the available values for the ending and beginning balance of retained earnings and net income, we can calculate the value of total dividends paid for the three year period.
15000 = 16000 + 19500 - Dividends
Dividends = 35500 - 15000
Dividends = $20500
Answer:
(d) All of the above responses are correct
Explanation:
The Capital asset pricing model (CAPM) helps in calculation of expected rate of return by an investor which is dependent upon risk premium and beta.
Beta refers to sensitivity of return from stock with respect to the market return.
Risk premium refers to the additional rate of return which an investor must be provided so as to compensate him for additional risk he assumes.
ER = Rf + β (Rm- Rf)
ER= Expected Rate Of Return
Rf= Risk Free Rate of Return
Rm= Return from market
β = sensitivity index of security return to market return
Security Market Line (SML) is a graphic representation of CAPM.
Thus, (d) is the correct option
Answer: The correct answer is "A.Maria is less risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.".
Explanation: We can measure the risk according to the standard deviation of its expected return, therefore: Maria is less risk averse because she is willing to take more risk in order to obtain a higher return and Jennifer instead prefers to sacrifice performance in order to be less exposed to risk.
Answer:
$2,000
Explanation:
Usually, the landlord is required to notify the tenant if he/she plans to sell the property, but regardless of who owns the property (the original landlord or a new landlord), the contract terms are valid and must be honored by both the current landlord and the tenant.
The new owner immediately became the new landlord and he/she assumed all the responsibilities stated in the lease contract. Since the lease contract stated that the "lessor (landlord) agreed to maintain all structures on the property in good repair", the new landlord must pay for any necessary repairs.
