Answer: 41.90%
Explanation:
First calculate the risk free rate:
Required return = risk free rate + beta * (Market return - risk free rate)
28.95% = rf + 1.85 * (18% - rf)
28.95% = rf + 33.3% - 1.85rf
28.95% = -0.85rf + 33.3%
0.85rf = 33.3% - 28.95%
rf = 4.35%/0.85
rf = 5.12%
New required return;
Required return = risk free rate + beta * (Market return - risk free rate)
= 5.12% + 1.85 * (25% - 5.12%)
= 41.90%
Answer:
1. A debit to cash for $135,000
Explanation:
The complete entries are
1. A debit to cash for $135,000
2. A credit to common stock account for $135,000
Answer:
Monthly deposit= $164.24
Explanation:
Giving the following information:
Future value= $1,000,000
Interest rate= 0.118/12= 0.00983
Number of periods= 35*12= 420 months
<u>To calculate the monthly deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,000,000*0.00983) / [(1.00983^420) - 1]
A= $164.24
Answer:
Time ticket
Explanation:
A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a: time ticket.
A time ticket also known as time card is type of document used to record the amount of hours an employee worked during a pay period. Time tickets come in all different shapes and sizes like the traditional time tickets that are physical cards that are stamped with starting and ending times of employees work days.
