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4 years ago

Which of the following is a true statement based upon the principle of the time value of money?

Business

2 answers:

kvasek [131]4 years ago

4 0

Answer:

D. The value of money does not increase or decrease as time passes.

Explanation:

KengaRu [80]4 years ago

3 0

Answer:

D.The value of money does not increase or decrease as time passes.

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Muhares, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly thr

Lapatulllka [165]

Answer:

c). 60%

Explanation:

Calculation for what the ending work-in-process inventory's stage of completion is:

First step is to calculate the Units in process

Units in process = 8,000 - 6,500

Units in process= 1,500 units

Second step is to calculate Equivalent units of conversion for in process

Equivalent units of conversion for in process = 7,400 - 6,500

Equivalent units of conversion for in process= 900

Now let calculate the ending work-in-process inventory's stage of completion

Ending work-in-process inventory's stage of completion=900 / 1,500

Ending work-in-process inventory's stage of completion= 0.60*100

Ending work-in-process inventory's stage of completion=60%

Therefore the the ending work-in-process inventory's stage of completion is:60%

4 0

3 years ago

The Rhaegel Corporation’s common stock has a beta of 1.2. If the risk-free rate is 4.3 percent and the expected return on the ma

alexira [117]

Answer:

Cost of equity = 14.74%

Explanation:

The capital asset pricing model is a risk-based model for estimating the return on a stock..

Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk.

Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.

Under CAPM,

E(r)= Rf + β(Rm-Rf)

E(r)- cost of equity , Rf-risk-free rate , β= Beta, Rm= Return on market.

Using this model, we can work out the value of beta as follows:

β-1.2 Rf- 4.3%, Rm = 13%

E(r) = 4.3% + 1.2 × (13 - 4.3)%=14.74 %

Expected return = 14.74 %

Cost of equity = 14.74%

8 0

3 years ago

Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead wa

Viefleur [7K]

Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead was underapplied during the period.

<h3>What does an unfavorable overhead volume variance mean?</h3>

An unfavorable volume variance indicates that the amount of fixed manufacturing overhead costs applied (or assigned) to the manufacturer's output was less than the budgeted or planned amount of fixed manufacturing overhead costs for the same time period.

Unfavorable variance is an accounting term that describes instances where actual costs are greater than the standard or projected costs. An unfavorable variance can alert management that the company's profit will be less than expected.

To learn more about Unfavorable variance visit the link

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#SPJ4

4 0

2 years ago

Accounting Equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2

melamori03 [73]

nah sorry i dont know about this

5 0

3 years ago

company must decide whether to buy Machine A or Machine B. After 5 years Machine A will be replaced with another A. The initial

Karo-lina-s [1.5K]

Answer: The present value of the Machine B ($16140) is less than that of Machine A ($16338) , so we should purchase Machine B.

Explanation:

Present value of the cost incurred on Machine A :

Given:

Initial capital cost = $12500

Capital cost at 6th year ($12500 - salvage of previous machine $10000) = $2500

Present value of capital cost at (10%,5) = $1553

Maintenance cost = $1000

Present value of Maintenance cost at (10%,10) = $6145

Less: Salvage at the end of Year 10 = $10000

Present value of Salvage cost at (10%,10) = $3860

Total present value of cost in Machine A = $16338

Similarly,

Present value of the cost incurred on Machine B :

Given:

Initial capital cost = $20000

Maintenance cost = $0

Present value of Maintenance cost at (10%,10) = $0

Less: Salvage at the end of Year 10 = $10000

Present value of Salvage cost at (10%,10) = $3860

Total present value of cost in Machine B = $16140

As the present value of the Machine B ($16140) is less than that of Machine A ($16338) , so we should purchase Machine B.

7 0

4 years ago