A risk premium is a measure calculated to reflect the riskiness of future profits. Subtracted from the discount rate when calculating the present value of a future stream of profits. Lower the more risky the future stream of profits. An additional compensation paid to the workers of a business enterprise.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A risk premium is a measure calculated to reflect the riskiness of future profits. Subtracted from the discount rate when calculating the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
osie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 Provided $45,000 of cleaning services on account.
Answers (1)
20. A company is in its first month of operations. On January 1, the company borrows $10,000 from the bank. The bank charges annual interest of 12% on the borrowed amount. Interest is due at the end of the year.
Answers (1)
Is trump building his wall
Answers (1)
Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year.
Answers (1)
What is a capital factor of production? 1. The tangible goods created by labor 2. The raw materials used to produce goods 3. The plan companies make to sell goods 4. The work people do to produce goods
Answers (1)
New Questions in Business
Gail's employer contributes $2,000 (5% of her $40,000 salary) to a qualified retirement plan for Gail. This pension plan is what kind of plan?
Answers (1)
Jennifer believes that the price of sugar is too low and that the price will rise within the next calendar quarter. If she wishes to trade based on her belief she should: Select one: a. Take a long position in the futures market. b.
Answers (1)
A firm has three different production facilities, all of which produce the same product ... While reviewing the firm's cost data, Jasmin, a manager, discovers that one of the plants has a higher average cost than the other plants and suggests
Answers (1)
Five jobs are waiting to be processed. Their processing times and due dates are given below. Using the shortestprocessing time dispatching rule, in which order should the jobs be processed?
Answers (1)
Acme Foods wants to make its chips saltier, but it doesn't want to spend more than it has to on salt. A sample of consumers are asked to compare its current chip (saltiness = 100) with saltier versions and to say whether the new version is saltier.
Answers (1)