In relation to the time value of money, what is interest?

Describe how the concept of beta impacts financial decision making

Dima020 [189]

The concept of beta impacts financial decision making by providing information volatility or systematic risk of a security.

The information that provided by the concept of beta would take form in a comparison between your chosen securities with other securities that exist in the market. For investors who prefer low risk but small and steady return, they can use the concept of beta to find out the securities with low level of volatility.

6 0

4 years ago

Presented below is information related to Bobby Engram Company.

Natasha_Volkova [10]

Answer:

A. $ 98,210

B1. Cost to retail percentage 60%

B2. Cost to retail percentage 65.73 %

B3. Cost to retail percentage 58 %

B4. Cost to retail percentage 63.33 %

Explanation:

A. Computation for the ending inventory at retail

Inventory at Retail

Beginning Inventory $ 100,000

Purchase ( Net ) $ 200,000

Net Markup $ 10345

Less Net Markdown ($26,135)

Less Sales Revenue ($ 186,000)

Ending Inventory $ 98,210

Therefore the ending inventory at retail will be $ 98,210

B1) Computation for a cost-to-retail percentage

Excluding both markups and markdowns.

Cost to Retail Percentage

Excluding both Markup and Markdown

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase (Net) $ 122,000 $ 200,000

Total $ 180,000 $ 300,000

Cost to retail percentage = $180,000/$300,000 Cost to retail percentage = 60%

B2. Computation for a cost-to-retail percentage Excluding Markups but Including Markdown

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase (Net) $ 122,000 $ 200,000

Less Mark down ($ 26,135)

Total $ 180,000 $273,865

Cost to retail percentage= $180,000 /$ 273,865*100

Cost to retail percentage= 65.73 %

B3. Computation for a cost-to-retail percentage Excluding Markdowns but including Markups

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase Net $ 122,000 $ 200,000

Add Net Markups $ 10,345

Total $180,000 $ 310,345

Cost to retail percentage = $180,000 / $ 310,345*100

Cost to retail percentage = 58 %

B4. Computation for a cost-to-retail percentage Including both Markups and Markdown

Cost Retail

Beginning Inventory $58,000 $100,000

Purchase Net $ 122,000 $ 200,000

Net Markups $ 10,345

Less Net Mardown ($26,135)

Total $ 180,000 $ 284,210

Cost to retail percentage = $ 180,000/ $ 284,210 × 100

Cost to retail percentage = 63.33 %

Therefore the cost-to-retail percentage are:

B1. Cost to retail percentage 60%

B2. Cost to retail percentage 65.73 %

B3. Cost to retail percentage 58 %

B4. Cost to retail percentage 63.33 %

8 0

3 years ago

The following information is available for Discounted Supplies Inc. and its two divisions, Durable Goods and Nondurable Goods. W

Yuri [45]

Answer:

The income before taxes for Discounted Supplies Inc is calculated as follows:

Sales - $100,000

less Variable cost - $24,500

less Fixed cost: Controllable & Uncontrollable & Unallocated - $25,500

less Operating cost - $16,400

Net Income = $33,600

Explanation:

The net income is the income before taxes. It is arrived at after deducting variable and fixed costs of sales, including operating cost.

It is based on this figure that income taxes will be levied.

The net income or income before taxes is regarded as the bottomline profit or returns or earnings that is distributable to stakeholders, including the government for taxation and the shareholders in form of dividends.

It shows the result of the efforts in running a business. A positive income before taxes shows that costs are being efficiently managed. It leaves a compensation for investors and the economy as a whole.

4 0

3 years ago

County governments in Texas:a.are single-purpose governments.b.all operate under the general laws of the state of Texas for the

Svet_ta [14]

Answer: All operate under the general laws of the state of Texas for the operation of county government.

Explanation: County officials are also members of the community, in where they are obliged to pay all necessary taxes as do and also drive on public roads as you do too.

6 0

3 years ago

Which method for calculating credit card balances is best for the customer who made a large purchase in the current month but ha

Vera_Pavlovna [14]

Option:

A) Average daily balance method

B) average monthly balance method

C) adjusted balance method

D) previous balance method

Answer: . D) prevail balance method

Explanation:

The previous balance method is one that excludes payments, credits, and new purchases that happened during the current billing cycle, for calculating finance charges.

7 0

3 years ago