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Answer:
C. contra asset, expense
Explanation:
The depreciation is an expenditure indicating a decline in the value of the fixed assets due to wear and tear, obsolescence, use, time period, etc. It's shown on the income statement debit side This is a non-cash item which has no effect on the cash balance.
Whereas the accumulated depreciation is an contra asset which reduce the asset balance. It records the depreciation in arrears and reported in the asset side of the balance sheet
Like
Equipment (XXXXX)
Less - Accumulated depreciation (XXXXX)
Net value of equipment (XXXXX)
Answer:
d. $1,000
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP = Consumption spending by households on durable and non durable goods and services + Investment spending by businesses + Government Spending + Net Export
Consumption spending = $200 + $200 + $100 = $500
Investment spending = $200 + $(500 - 400) = $300
Government spending = $200 + $100 = $300
Transfer payments aren't included in the calculation of GDP. So, the $200 spent on welfare and unemployment benefits and $300 on social security payments isn't included in the calculation of GDP.
Net export = Export- Import = $400 - $500 = $-100
GDP = $500 + $300 + $300 - $100 = $1000
I hope my answer helps you
Answer:
WJK's Unlevered Beta = 1.7
Expected rate of return = 13%
Financial leverage = 0.25
Explanation:
given data
debt = $5000
equity = $20,000
interest = 5%
equity beta = 2
market risk premium = 5.5%
risk free rate of return = 2%
marginal tax rate = 30%
solution
we find here Unlevered Beta that is
Unlevered Beta = ![\frac{Beta (Levered)}{{1 + [ (1- tax rate)* (\frac{Debt}{Equity})]}}](https://tex.z-dn.net/?f=%5Cfrac%7BBeta%20%28Levered%29%7D%7B%7B1%20%2B%20%5B%20%281-%20tax%20rate%29%2A%20%28%5Cfrac%7BDebt%7D%7BEquity%7D%29%5D%7D%7D)
...........................1
as that we can say
WJK's Unlevered Beta = ![\frac{Beta of GH (Levered)}{{1 + [ (1- tax rate)* (\frac{Debt of GH}{Equity of GH})]}}](https://tex.z-dn.net/?f=%5Cfrac%7BBeta%20of%20GH%20%28Levered%29%7D%7B%7B1%20%2B%20%5B%20%281-%20tax%20rate%29%2A%20%28%5Cfrac%7BDebt%20of%20GH%7D%7BEquity%20of%20GH%7D%29%5D%7D%7D)
put here value we get
WJK's Unlevered Beta = ![\frac{2}{{1 + [ (1- 0.3)* (\frac{5000}{20000})]}}](https://tex.z-dn.net/?f=%5Cfrac%7B2%7D%7B%7B1%20%2B%20%5B%20%281-%200.3%29%2A%20%28%5Cfrac%7B5000%7D%7B20000%7D%29%5D%7D%7D)
WJK's Unlevered Beta = 
WJK's Unlevered Beta = 1.7
and
Expected rate of return on equity of GH using CAPM = Risk free rate + Beta of GH × (Market risk premium)
Expected rate of return = 2% + 2 × (5.5%)
Expected rate of return = 13%
and
Financial leverage will be here
Financial leverage = 
Financial leverage = 
Financial leverage = 0.25
