00:02
So, here are the answers to the question.
00:05
The 26th question is a false statement.
00:18
The intercompany loan should still change a market interest rate even if the transaction is among the subsidiaries of the same company.
00:26
So, this is because the interest rate should reflect the cost of borrowing money regardless of who the borrower is.
00:33
So, the intercompany loans should still charge a market interest.
00:48
So, next statement is again a false statement.
01:07
A company issuing new stock in the market still takes on the stock subscription risk even if they hire an investment bank to perform the best efforts underwriting of the new stock issue.
01:18
So, this is because the investment bank is only obligated to sell the share that they are able to sell and the company is still responsible for any shares that are not sold.
01:27
The company takes on the stock subscription risk.
01:44
Stock subscription risk.
01:51
The 28th statement is true that the required rate of return using the capital asset pricing model that is capm is calculated as follows which is the required run rate equals to risk free rate plus beta plus market risk premium.
02:10
Required return equals to risk free rate plus beta plus market risk premium.
02:26
In this case, the risk free rate is 1 .5%.
02:45
Historical stock market average rate of return is 8 % and the company's beta is 1 .42%.
02:51
So, therefore the required rate of return is 10 .73%.
02:57
The risk free rate is 1 .5 % and the historical is 8%.
03:14
So, the 10 .73%.
03:22
The 29th statement is true that cash concentration is the practice of collecting and depositing cash from multiple location into a single account...