Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose you are considering two possible investment opportunities; a 12-year Treasury bond and a 7-year, A-rated corporate bond. The current real risk-free rate is 4%; and inflation is expected to be 2% for the next 2 years, 3% for the following 4 years, and 4% thereafter. The maturity risk premium is estimated by this formula: MRP= 0.02(t-1)%. The liquidity premium (LP) for the corporate bond is estimated to be 0.3%. You may determine the default risk premium (DRP), given the company's bond rating, from the table :
U.S. Treasury (rate) 1.81% (CBYS=DRP+LP) -AAA corporate (rate) 2.00 (CBYS=DRP+LP) 0.19% AA corporate (rate) 2.68 (CBYS=DRP+LP) 0.87A corporate (rate) 2.79 (CBYS=DRP+LP) 0.98
Remeber to subtract the bond's LP from the corporate spread given in the table to arrive at the bond's DRP. What yield would you predict for ech of these two investments?
At the break-even point of 1,500 units, variable costs are $60,000, and fixed costs are $30,000. What would operating income be if 1,501 units are sold?
Income statement, Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40 percent.
The government-wide changes in net assets would be displayed as ??
Assume you are reviewing a company's annual report. In addition to actual revenues reported in the income statement, what other information disclosed would give you help in estimating this company's future revenues?
Evaluate how research and normative theory impacts accounting education today and the likely impact that more research may have on the accounting profession.
Following are several December 31 account balances of Brookhaven Square, Inc. prior to the preparation of year-end adjusting journal entries: Briefly describe the nature of the adjusting journal entries for the accounts identified.
The left-hand side of an account is used in recording debits, and the right hand side is used for recording credits in, Which of the following is NOT a basic function of an accounting system:
During 20x8, Voss declared and paid dividends of $80,000 on its common stock. Net income for 20x8 amounted to $500,000. The earnings per share (rounded to the nearest cent) for 20x8 are
Davie Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is $6.00 per direct labor-hour; the budgeted fixed factory overhead is $92,000 per month, of which $16..
Identify how operating budgets are developed. Compare five to seven expense results with budget expectations, and describe possible reasons for variance.
The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead.
You bought a stock three months ago for $73.82 per share. The stock paid no dividends. The current share price is $76.09.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd