Answer:
(A). Ajax Inc. is most likely to have a RFM of 155.
Explanation:
RFM (Recency, Frequency, Monetary) analysis shows how well customers patronize a business by ranking them based on each of recency, frequency and monetary value, on a scale of 1 to 5, with 5 as the highest and 1 as the lowest.
Ajax Inc. has not ordered in a while, so it most likely has a recency score (R) of 1.
Since they ordered frequently in the past, frequency score (F) is 5.
Since orders were of the highest monetary value, (M = 5).
Therefore Ajax Inc. has a RFM of 155.
Answer:
False imprisonment
Explanation:
Also known as criminal restrain or confinement ,this is an act of illegal detention of a person against his will by someone who is not in a legal position to do so.
It is mostly used to hold an offender in hostage till the arrival of a law enforcement officer.
It is a criminal act under intentional tort and charge can vary from misdemeanor to felony depending the the type of action used in making the arrest and detention
Answer: $3.4 million
Explanation:
The increase in Retained earnings is the net earnings for the year.
Net earnings are calculated by deducting dividends from the Net income.
Net earnings = Net income - Dividends
1,700,000 = 5,100,000 - Dividends
Dividends = 5,100,000 - 1,700,000
= $3,400,000
= $3.4 million
Answer:
Under CAPM:
Re = Rf + Beta(Rm - Rf)
Rf = 5%
Rm - Rf = 6%
Beta = 1.25
Re = 5% + (1.25 x 6%) = 12.5%
Under dividend discount model:
Re = (Div₁ / P₀) + g
Div₁ = $1.20
P₀ = $35
g = 8%
Re = ($1.20 / $35) + 8% = 11.43%
Under bond yield plus risk premium approach:
Re = Pre-tax cost of debt + risk premium over its own debt
Pre-tax cost of debt = 7%
risk premium over its own debt = 4%
Re = 7% + 4% = 11%
The highest cost of equity results from the CAPM model and it is 12.5% while the lowest results from using the bond yield plus risk approach (11%), the difference is 1.5% between them.
Answer and Explanation:
The Journal entries are shown below:-
1. Salaries expenses Dr, $1,950
To Salary payable $1,950
(Being salaries expense is recorded)
2. Interest expense Dr, $150
To Interest payable $150
(Being interest expense is recorded)
3. Accounts receivable Dr, $1,600
To Service revenue $1,600
(Being sales revenue is recorded)