Answer:
True
Explanation:
The reason is that the straight line equation is used to illustrate the relation between the rate of return and the beta factor and is given as under:
Y = a + bX
Here
a = Rf
B = Risk premium = Rm - Rf
X = Beta Factor
So this means the security market line is the graphical presentation of capital asset pricing model and illustrates why the increase in beta factor increases the required rate of return, the reason is that the the overall required return Y of the investment will start increasing with the increase in the beta factor.
So the statement is true.
TRUE. Participation occurs when employees have a voice in decisions about their own work.
Answer:
A. the iso-quant line is tangent to the iso-cost line.
Explanation:
Cost minimization refers to the decrease in level of cost of production for certain specified level of production.
Iso quant line represents the labor and capital combinations keeping the total cost same. The least combination represents the tangent to isoquant, basically representing the idle choice of labor and capital.
In this manner the company chooses the idle way of cost minimization.
Answer: $10,700
Explanation:
The Uncollectible Account Expense is the Accounting Adjustment made when a Receivable defaults on their debt and it can be calculated using the following formula,
= Uncollectible Amount written off + Closing Balance - Opening Balance.
Now the balances are as follows,
Opening Balance for Year 2 = 4,500
Closing Balance for Year 2 = 6,800
Uncollectible Amount written off during Year 2 = 8,400
Calculating therefore,
= 6,800 + 8,400 - 4,500
= $10,700
Allegheny will report $10,700 as Uncollectible Accounts Expense for Year 2.
