Answer:
SO expected return on Mkt Portfolio Rm = 10.75%
Explanation:
market degree of risk aversion A = 3
Var = 0.0225 = SD^2
Rf = 4%
What is expected return on Mkt Portfolio ie Rm??
According to CAPM, Rm-Rf = A*SD^2
where SD is Std Dev (Recall SD^2 = Variance)
A is market degree of risk aversion
So we have Rm-4% = 3*0.0225
ie Rm = 4% + 3*0.0225 = 10.75%
SO expected return on Mkt Portfolio Rm = 10.75%
Answer:
The company's cost to produce 1,000 gallons of product B is $7,131.25.
Explanation:
This can be calculatd as follows:
Product B share of joint cost = (Product B sales value / (Product B sales value + Product A sales value)) * Cost to split-off point = ($32.20 / ($32.20 + $3.00)) * $5,500 = 0.914772727272727 * $5,500 = 5,031.25
Product B total additional separable process beyond split-off = Additional cost per gallon * Number of gallons of product B produced = $2.10 * 1,000 = $2,100
Therefore, we have:
Company's cost to produce 1,000 gallons of product B = Product B share of joint cost + Product B total additional separable process beyond split-off = 5,031.25 + $2,100 = $7,131.25
Therefore, the company's cost to produce 1,000 gallons of product B is $7,131.25.
Answer:
The answer is letter A. TRUE
Explanation:
Because under IFRS firms tipically use the cost recovery method iif they conclude that the percentage of completion method is not appropriate to account for a long term contract.
Answer:
c. Work in Process--Department 2 375,000 Work in Process--Department 1 375,000
Explanation:
The journal entry is shown below:
Work in Process - Department 2 $375,000 ($100,000 + $125,000 + $150,000)
To Work in Proces - Department 1 $375,000
(Being the flow of cost from Dept 1 to Dept 2 is recorded)
Here the work in process for dept 2 is debited as it increased the assets and credited the work in process for dept 2 as it decreased the assets
Answer: 12%
Explanation:
Stated interest rate is used in the calculation of the annual interest payment.
Interest payment = Face value of bonds * Stated interest rate
Annual Interest payment = Semi annual interest payment * 2
= 12,000 * 2
= $24,000
24,000 = 200,000 * Stated interest
Stated interest = 24,000 / 200,000
= 0.12
= 12%