Answer:
$40,000
Explanation:
The accounting procedure involved in the above is that one picks the lower between the actual interest incurred and the interest computed on the weighted average amount of accumulated expenditures for PPE.
The actual interest incurred on specific construction debt and other borrowings
= $50,000 + $20,000
= $70,000
Since the interest computed on the weighted average amount of accumulated expenditure for the building is $40,000 , the lower between the actual interest incurred and interest on weighted average amount of accumulated expenditure is $40,000, hence will be the capitalized amount.
Answer:
Target markets are management and business students looking forward for employment and full year courses.
Explanation:
- The target market can be those who are working full time in the day and may also include the small and medium business owners that intend to provide some sort of online cloud computing set up for the college, and
- It may be the students that want to continue their higher education and pursuing a full degree. These may also include the off-campus students that are interested in doing professional courses.
The company's return on investment ROI would be 12.5%
What does a favourable return on investment mean?
The profit from an investment is divided by the investment's cost to determine the return on investment (ROI). When represented as a percentage, an investment with a profit of $100 and a cost of $100 would have a ROI of 1, or 100%. Generally speaking, a yearly ROI of around 7% or higher is regarded as a decent ROI for an investment in stocks. This also refers to the S&P 500's average annual return when inflation is taken into account of the company to increase the profit margin.
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Answer:
$150,150
Explanation:
Total fair value of all assets:
= Land + Building + Paddleboats
= $67,200 + $158,400 + $254,400
= $480,000
Building accounted for:
= Fair value of building ÷ Total fair value
= $158,400 ÷ $480,000
= 33%
Therefore, the building is 33% of the total fair value of assets.
Cost of acquisition of assets:
= Amount paid + Closing cost to buy out a competitor
= 450,000 + 5,000
= $455,000
Cost to be allocated to the building:
= Cost of acquisition of assets × Percent share in total fair value
= $455,000 × 33%
= $150,150
Answer:
Portfolio's beta is 1.04.
Explanation:
Portfolio's beta is the weighted average beta. So, take weightage of each stock, multiply it with the respective beta, and add the results.
Finding Portfolio value for Weightages:
Total Amount Invested OR Portfolio value is = 10,000 + 40,000 = $50,000
Weighted Average Beta:
(10,000 / 50,000) * (.4) + (40,000 / 50,000) * (1.2) = .08 + .96 = 1.04.
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