Answer:
Option C is correct.
<u>The required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future is 18%.</u>
Explanation:
Real risk free rate = 3%
Inflation Premium = 5%
Nominal risk free rate Rf = Real risk free rate + Inflation Premium = 3% + 5% = 8%
Market risk premium (Rm –Rf) = 5%
Beta = 2
As per CAPM, required rate of return = Rf + beta * (Rm – Rf) = 8% + 2 * 5% = 18%
Answer:
The equivalent units of production for materials is 570.
Explanation:
Equivalent units measures the number of units completed to the extend of in puts introduced to the outputs.
<u>Calculation of equivalent units of production for materials.</u>
Units completed and transferred (450 × 100%) 450
Units in ending work in process ( 60 × 20 %) 12
Total equivalent units of production for materials 570
Conclusion :
The equivalent units of production for materials is 570.
Explanation:
a. Ralph is in charge of the land, with an implicit right to payment in compliance with right doctrine (North American Oil Consol. v. Burnet (1932, S.Ct.) 286 US 414). This year, however, gross sales are made, although they may be reimbursed later.
b. Unless he returns money to Acme this year, Ralph will be able to claim a deduction of $5,000. Although Ralph originally paid the $1,750 tax on invoice and only saved $1,400 on the reduction of the refund and because the repayment timing resulted in an additional $350 tax. As the amount refunded to Ralph is more than $3,000 according to IRC§ 1341a. This is possible for Ralph to use the taxes accrued in the next year from the same refund to cover taxes. So Ralph will say a tax offset of $1,750 instead of a deduction of $5,000.
c.The sum of the deduction must be more than $3,000, according to IRC § 1341(a). Because Ralph spent just $2,500, he is not liable for tax reduction deductions, but can only claim a refund deduction.
Interest paid to the share holder of a specific company that offers a dividend. (note: not all companies pay dividends).
We have that the january units cost 2400*45=108000$. Also, February's cost is going to be 3700*45=166500$. We have that for January, the ending balance needs to be 70% of the stock for February. Hence, it needs to be 70%*166500=116500$. Hence, we will need to pay for the units 108000$ and also 116500$; Thus, the total money that needs to be invested in January is 224500$. However, we already have 37250$, so the total inflow of money is 187250$. Hence, the correct choice is that on January we need 187300$.
(For February, we need to put in 166500$ and also 51800 need to be available at the end of the month. Thus, the total cost needs to be 218300$. However, 116500$ are already available from January. Hence, the total inflow for February is 101800$.
The total from both months is: 187250+101800=289050$)
