Answer:
14.82%
Explanation:
initial investment = $1,000
annual coupon = $140 (7 coupons received)
selling price = $1,090
the easiest way to determine the realized rate of return is to use a financial calculator or excel spreadsheet, and calculate the IRR: 14.82%
the cash flows are:
- -1000
- 140
- 140
- 140
- 140
- 140
- 140
- 1230
Answer:
B
Explanation:
Variable costs are incurred only when a boat is manufactured such as material and direct labor. Thus variable costs will remain unchanged since it will costs the exact same amount to manufacture another identical boat. If it costs $4,000 in material and direct labor to manufacture boat A it will cost $4,000 to manufacture boat B. Fixed costs are sunk costs that will be incurred whether they manufacture 800 or 1,000 boats per year. The rent and admin costs will remain unchanged no matter how many boats are manufactured. But the fixed cost per boat will change. The total fixed costs are $80,000 (800 boats x $1,000 per boat fixed cost). If the manufacturing rate is increased to 1,000 boats per year, the per boat fixed cost will decrease to $800. Fixed costs remain at $80,000/1,000 boats = $800.
<span>The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid and added to the invoice is : </span>debit Purchases $2,750, debit Freight In $125; credit Accounts Payable $2,875
The portfolio that contains the common return on a mixture of market index with the same beta is often known as protection market line.
<h3>Is safety market line the same as CAPM?</h3>
The safety market line (SML) is a visual representation of the capital asset pricing model (CAPM). SML is a theoretical representation of the predicted returns of belongings primarily based on systematic, non-diversifiable risk.
<h3>How do you study a security market line?</h3>
The two-dimensional correlation between anticipated return and beta can be calculated via the CAPM formula and expressed graphically via a safety market line, or SML. Any protection plotted above the SML is interpreted as undervalued. A safety under the line is overvalued.
Learn more about security market line here:
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