Date 8/1/23 Adj Date TSLA Return AMZN Return MCD Return Risk-Free S&P 500 Return TSLA excess r AMZN excess r MCD excess r TSLA, AMZN excess r AMZN, MCD excess r TSLA, MCD excess r S&P 500 excess r -4.08% 8/31/23 -5.32% -3.50% 3,24% -3.63% -4.87% -3.95% 2.79% 0.45%

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: Which are the more complex applications of rate-of-return techniques/

A: The question is based on the concept of rate of return and its application in finance

Q: What are the important feature of a perpetual system?

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Which cell or column is used for the covariance?

A: Here, Probability Stock Fund Rate of Return A B 0.1 -34% 0.2 -20% 0.3 21% 0.4 36%…

Q: Explain HPRs and Inflation?

A: Answer: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: What is the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…

Q: what formula did you use to calculate PVIFA?

A: The acronym PVIFA stands for the present value interest factor. The present value interest factor is…

Q: What is EPS and how is it calculated?

A: EPS is referred to as earning per share and is defined as portion of company's profit allocated to…

Q: What is a transfer price?

A: Inter division transactions:  When the different divisions under the same business organization are…

Q: What is internal rate of return (IRR) method?

A: NPV shows the excess of PV of all the cash inflows over the initial outlay of the project. It is a…

Q: What is a cross rate?

A: Cross rate is an exchange rate of currency between two countries, but both countries are not using…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.