The two primary sources of equity shown in a balance sheet


1. You received 3% APR interest rate from a CD account of Bank of America. By check the internet, you also noticed that the inflation rate was 2% for the year, what is the real interest rate you got? Suppose you also got a 12% APR return rate from your stock investments, how much is the risk premium on the stock investments?

2. The two primary sources of equity shown in a balance sheet are:

a. Residual equity and debt equity.

b. Capital equity and residual equity.

c. Contributed capital and earned capital.

d. Unearned capital and earned capital.

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Financial Management: The two primary sources of equity shown in a balance sheet
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