Arisk 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.

The vaska company buys a patent on january 1, year one, and agrees to pay $100,000 per year for the next five years. the first payment is made immediately, and the payments are made on each january 1 thereafter. if a reasonable annual interest rate is 8 percent, what is the recorded value of the patent? 1. $378,4252. $431,2133. $468,9504. $500,000

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.

Acollege registrar's office requires you to first visit with one of three advisors and then with one of two financial professionals. this system best described as which of the following? a. single server, single phase systemb. multiple server multiphase systemc. multiple server, cross phase systemd. single server, multiphase systeme. multiple server, single phase system