Answer:
7.68 percent
Explanation:
Calculation to determine the risk premium on this stock
Stock risk premium = 1.09 (0.098 - 0.0275) 
Stock risk premium = 1.09(0.0705)
Stock risk premium= 7.68 percent
Therefore the risk premium on this stock is 7.68 percent
 
        
             
        
        
        
Answer: Investors expected the earnings increase to be smaller than what was actually announced.
Explanation:
Abnormal return on an asset such as stock refers to the difference between actual returns and expected returns. As such, if it is positive, that would mean that the actual returns are/ will be higher than the expected/anticipated returns. 
TYR had an abnormal return of 3.7% which would mean that the the 35% lower fourth-quarter earnings was higher than investors expected from TYR. 
 
        
             
        
        
        
Answer:
   Is the proposed action legal?
Explanation:
The very first step in the decision tree (below) was ignored. Disregarding local laws is ignoring the question of legality.
 
        
             
        
        
        
Answer:
Journal Entry
May 3
Dr. Allowance for doubtful accounts   $2,800
Cr. Account Receivable                        $2,800
Explanation:
When a receivable of the business is considered to be non-collectible from a customer, it is written off from the accounts. This event will decrease the account receivable balance and allowance for the doubtful accounts too. a Debit entry in the Allowance for doubtful account and a credit entry in accounts receivable is made to incorporate the effect of this transaction.