Answer:
The Asset is a Qualifying Asset.
Explanation:
Qualifying Assets take substantial period of <em>time</em> to get ready for its intended use and purpose and that will require capitalizing interest costs or borrowing cost to the asset.
Answer:
“Successful people begin where failures leave off. Never settle for ‘just getting the job done.’ Excel!” —Tom Hopkins
Explanation:
C). <span>a two-year vocational school program in automotive repair</span>
Answer:
Cost Variance (CV) for the project is negative $77.5
Explanation:
The total amount budget for all 3 activities = Activity A worth $200 + Activity B worth $75 + Activity C worth $200 = $475
The total value completed = activities cost x % complete = $200*100% + $75*90% + $200*75% = $417.5
The actual cost till now = $200 + $120 + $175 = $495
The cost variance = The total value completed - The actual cost till now = $417.5 - $495 = ($77.5)
Answer:
Expected return=5.1%
Explanation:
The expected rate of return on the stock can be determined using the dividend valuation model
<em>According to this model, the value of a stock is the sum of the present values of the future dividend that would arise from it discounted at the required rate of return.</em>
Using this model,
Cost of equity (Ke) =( D(1+g)/P) + g
Div in year 0, P= ex-div market price, g= growth rate in dividend
For this question
Expected rate of return = (1.42×(1+0.02)/46 + 0.02= 5.1%
Expected return=5.1%