Answer:
a) $8.00
Explanation:
Beginning work in progress, conversion $15,900
Conversion costs incurred during period $26,500
Total costs to account for $42,400
Cost per equivalent unit for conversion = $42,400/5,300
= $8.00
Therefore, Department X's cost per equivalent unit for conversion costs using the weighted average method would be $8.00
Answer:
2.30%
Explanation:
Data has given as:
Yield for 1 year T-bill = 7.00%
Future inflation rate = 4.7%
In order to find the risk-free rate of return we need to deduct future inflation rate from the yield for the year
Risk-free Rate of return = 1 year T-bill yield - inflation
Risk-free Rate of return = 7.00% - 4.70%
Risk-free Rate of return = 2.30%
Answer:
The stocks yields 14.73% per year
the bonds yields 7.89% per year
The stock provide a better yield, which is 6.84% greater than bonds yield
Explanation:
the return will be calculate as follow:
return/ investment cost
<u>stocks</u>
return 3.15 dividends
cost 21.38 each stock
yield:
3.15 / 21.38 = 0,14733395 = 14.73%
<u></u>
<u>bonds</u>
return: cuopon payment 1,000 x 8.3% = 83
cost : market value 1,000 x 105.166/100 = 1,051.66
yield:
83/1051.66 = 0,07892284 = 7.89%
<em>Difference:</em>
stocks 14.73 - bonds 7.89 = 6.84
