Answer:
The correct answer is option (A).
Explanation:
According to the scenario, the computation of the given data are as follows:
First, we will calculate the Market risk premium, then
Market risk premium = (Required return - Risk free rate ) ÷ beta
= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%
So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk
Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65
= 0.5676 + 0.2986
= 0.8662
By putting the value, we get
Required rate of return = 4.20% + 0.8662 × 5.048%
= 8.57%
Answer:
Direct labor rate variance= $1,666 favorable
Explanation:
Giving the following information:
The company produced 5,200 units in January using 2,380 direct labor-hours.
The actual direct labor rate was $19.30 per hour
<u>To calculate the direct labor rate variance, we need to use the following formula:</u>
<u></u>
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (20 - 19.3)*2,380
Direct labor rate variance= $1,666 favorable
Answer:B It thought that unemployment was a greater problem than the rising inflation rate
Explanation:
Inflation is the continuous rise in price of goods and services which is as a result of large volume of money in circulation used for the few available goods and services.
Unemployment is a situation where all that are willing and capable of being employed are unable to get employment.
In the above scenario lowering Interest rates will increase the volume of money in circulation which will invariably increase inflation and we equally increase level of investment as the cost of fund will be cheaper thereby lowering unemployment.
This action means unemployment is of greater problem than rising inflation.
It does not mean inflation is of more concern than unemployment otherwise it will have increase the interest rate, it will make loanable fund demanded to exceed supply and the quantity of money in supply will increase.
Answer:
$375,000
Explanation:
The computation of the amount included in the natural resource is shown below:
= Cost of land & natural resource rights + cost of extraction during year + equipment used for mining + exploration & drilling cost
= $200,000 + $35,000 + $100,000 + $40,000
= $375,000
Hence, all the cost is inlcuded for natural resource except asset retirement obligation for restoring the land as this is not relevant so we ignored it
Based on the information given the current ratio is:1.4.
<h3>Current ratio</h3>
Using this formula
Current ratio=Current assets/Current liabilites
Where:
Current assets=$191,800
Current liabilities=$137,000
Let plug in the formula
Current ratio=$191,800/$137,000
Current ratio = 1.4
Inconclusion the current ratio is:1.4.
Learn more about current ratio here:brainly.com/question/2686492
