Answer:
Gross profit= $328
Explanation:
Giving the following information:
Sales revenue= $800
Total costs= $472
To calculate the total profit of this company, all we have to do is deduct from earnings all the cost components. I will assume that total costs include both fixed and variable costs.
Gross profi= 800 - 472
Gross profit= $328
Answer:
correction option is A i.e. Flexibility option
Explanation:
correction option is A i.e. Flexibility option
flexibility option make easier for corporation unit to decide on production or raw material on the basis of market condition.
Abandonment option - As the name indicate this option initiate when corporation suffered huge lost or when there is a conditioned of minimum cash flow due to any reason.
Answer:
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Answer: The correct answer is "B, C, and D".
Explanation: All of these are corrects statements regarding the direct write-off method for calculating bad debt expense.
- This method is generally not consistent with GAAP and accrual accounting.
- Using this method generally causes an over estimate of accounts receivable in the company's balance sheet.
- One of the peculiarities of this method is that it only recognizes the expense for bad debts when a specific account is determined uncollectible.
The question is incomplete. Here is the complete question
According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock beta of 1.2, and a risk-free interest rate of 4%?
Answer:
8%
Explanation:
The expected return on security is 13.6%
The stock beta is 1.2
The risk free interest rate is 1.4
Therefore, using the CAMP , the market risk premium can be calculated as follows
13.6%= 4% + 1.2×MRP
13.6%-4%= 1.2MRP
9.6%=1.2MRP
MRP= 9.6/1.2
MRP= 8%
Hence the market risk premium is 8%
