Answer:
the beta of the second stock is 1.77
Explanation:
The beta of the second stock is shown below;
Investment in each = (1 ÷ 3)
Now as we know that
Portfolio beta = Respective investments × Respective weights
1 = (1 ÷ 3 × 1.23) + (1 ÷ 3 × beta of the second stock) + (1 ÷ 3 × 0)
We assume the Beta of risk-free assets would be zero
1 = 0.41 + (1 ÷ 3 × beta of the second stock)
The beta of the second stock is
= (1 - 0.41) × 3
= 1.77
Hence, the beta of the second stock is 1.77
We can calculate total assets by accounting equation, which is total assets equal to total liabilities plus total equity. Using the basic accounting equation:
Total assets = Total liabilities + shareholders’ equity
= total liabilities + ( total common stock + Retained earnings)
= $51.391 million + ($2.540 million + 18.432 million)
= $72.363 million
Therefore, total assets of the firm would be $72.363 million.
Answer:
Increase its additional paid-in capital by $16,000.
Explanation:
$80,000 less $64,000 (1/3 * $192,000)
= $16,000
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Using the allowance method, the correct adjusting journal entry to record bad debt expense is:
Debit Bad Debt Expense
Credit Allowance for Doubtful Accounts.
Bad debt expense can be define as the amount a company or organization assume are uncollectible because they felt the customer or client they loan would never pay back debt amount loan to them.
The appropriate adjusting journal entry to record bad debt expense is:
Debit Bad Debt Expense
Credit Allowance for Doubtful Accounts
(To record bad debt expense)
Learn more about Bad debt expense here:
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