what is the real rate

Q: DMJ company's December 31 work sheet for the current period appears below. Unadjusted Adjustments…

A: Net Income refers to the income generated by the firm during the period after paying off its revenue…

Q: Example 6 A person requires a loan of R10 000. The bank offers a simple interest rate of 15% p.a..…

A: Lets understand the basics. For calculating loan period we will need to use below formula. Interest…

Q: EBIT

A: EBIT is a measure used by companies to calculate their overall profitability. EBIT stands for…

Q: Explain NAREIT Index?

A: NAREIT Index Rate: It implies the compound dividend yield which is communicated as far as a yearly…

Q: ffective rate?

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: Mfg OH Rate Variance 2 standard labor-hours per widget at $3 per direct labor hour Last week 1,800…

A: Standard quantity :— It is calculated by multiplying budgeted quantity per unit with actual…

Q: Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based…

A: Predetermined Overhead Rate: It refers to an estimated rate that is expected to be used whilst…

Q: at output

A: Given: To explain the Vat output as,

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 disbursal rate

A: Disbursal rate is an important concept in the realm of financial markets and in the realm of fintech…

Q: Schindler Co. consigns 20 water heaters to Paralax Co. on January 1, 20x1. The unit cost per water…

A: The consignor recognizes the revenue if the water heaters are sold to the customer and not on…

Q: What is a cross rate?

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

Q: Date 8/1/23 Adj Date TSLA Return AMZN Return MCD Return Risk-Free S&P 500 Return TSLA excess r AMZN…

A: TSLA return-3.50%AMZN return3.24%MCD return-3.63%Risk free0.45%S&P return-4.87%

Q: Date Adj Date TSLA Return AMZN Return MCD Return Risk-Free -3.50% 3.24% -3.63% 0.45% 8/1/23 8/31/23…

A: Excess returns refer to the difference between two return rates. The second rate is usually the…

Q: What is Net realizable value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: at is the initial value in part a ??

A: In forward and futures the price calculations are done based on the future cash flow from the stock…

Q: What is hurdle rate?

A: Hurdle rate a rate usually used in capital budgeting decisions to calculate the acceptability of a…

Q: What are the two components of Time value?

A: Time Value: In the selling of options, the term value applies to a portion of the price on an offer…

Q: What is the EBIT?

A: Earning Before Interest and Taxes (EBIT) The calculation of earning before interest and taxes are…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.