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2 years ago

A lower expected return means a higher risk will have to be accepted. true false

1 answer:

8 0

The statement "A lower expected return means a higher risk will have to be accepted. " Is false. This is further explained below.

<h3>What is the expected return?</h3>

Generally, According to the proverb, "A lower projected return indicates a bigger risk will need to be taken." Is false

In conclusion, The amount of profit or loss that an investor might anticipate obtaining as a result of the investment is referred to as the anticipated return. To get an anticipated return, first, multiply all of the possible outcomes by the percentage chance that each one will occur, and then add up all of those products. It is impossible to provide a guarantee on expected returns.

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When bonds are issued at their face amount, the journal entry will include a __________ to __________.

Eva8 [605]

D. Credit; bonds payable

3 0

2 years ago

It costs Sheridan Company $28 of variable costs and $17 of allocated fixed costs to produce an industrial trash can that sells f

Mashutka [201]

Answer:

Option (C) is correct.

Explanation:

Variable costs = $28

Allocated fixed costs = $17

Selling price = $84

Due to acceptance of M offer, S would be got excess contribution margin per unit. Because acceptance selling price ($34) is greater than the variable cost per unit ($28).

We don't have any information about the fixed cost due to acceptance. Therefore, we assumed that fixed cost is not increased.

Increased contribution margin per unit:

= Selling price - Variable cost

= $34 - $28

= $6

For 3,000 units, Increased contribution margin = 3,000 × $6

= $18,000

Therefore, net income is increased by $18,000 when the offer is accepted.

6 0

3 years ago

Estimated expenses of liquidation were $10,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. Before l

stealth61 [152]

<u>Solution and Explanation:</u>

The total amount of cash available for safe payments would be $25,000 (90,000 - 60,000 - 5,000). This amount will be distributed between Henry and Jacobs in the ratio of 6:4 meaning that $15,000 (25,000*60%) will be given to Henry and $10,000 (25,000*40%) will be given to Jacobs.

The value of $120,000 will be distributed to the partners as follows:

Henry Issac Jacobs

Equity 80,000 110,000 140,000

Less Loss on Assets 36,000 72,000 72,000

Liquidation Expenses 1,000 2,000 2,000

Balances 43,000 36,000 66,000

Less Distribution

of Safe Payments to Partners 15,000 0 10,000

Net Balances $28,000 $36,000 $56,000

4 0

3 years ago

_____ is the most common way to measure the standard of living in different countries. GDP per capita Nominal GDP Real GDP

Lady bird [3.3K]

The answer is GDP per capita. The Gross Domestic Product just shows the wealth of a nation as a whole since GDP is the value measure of the all the final goods and services produced over a period of time by a country. GDP per capita shows the average wealth per person (hence involves dividing the GDP of a country by its population).

8 0

3 years ago

Read 2 more answers

Auto Industries Company reported the following on its income statement:

AleksandrR [38]

Answer:

Option c. 5.25 times is the correct answer.

Explanation:

Below is the calculation:

Income before income tax = $420000

Income tax expenses = 120000 dollars

Net income = $300000

Interest expense = $80000

Interest earned ratio = Earning Before Interest and Taxes / Interest Expenses

Interest earned ratio = 420000 / 80000

Interest earned ratio = 5.25 times

Option c. 5.25 times is the correct answer.

7 0

3 years ago