Answer:
Beta is 0.85
Explanation:
The value of Beta can de derived from the CAPM formula of expected return
expected return=risk-free rate+Beta*market risk premium
expected return is 10.2%
risk-free rate is 4.10%
market risk premium is 7.2%
Beta is unknown
10.20%=4.10%+Beta*7.20%
10.20%-4.10%=Beta*7.20%
6.10%
==Beta*7.20%
Beta=6.10%
/7.20%
Beta= 0.85
The answer is true
explanation : I had this question and got it right
Answer:
The company should buy from an outside source rahter than manufacturing because each bottle manufactured costs $5 more.
Explanation:
Differential Analysis
Make Buy
Manufacturing Cost per bottle $ 67
Purchasing Cost per bottle $35
Freight per bottle $ 5
<u>Fixed Costs $ 22 </u>
<u>Total $ 67 $62 </u>
<u />
The company should buy the bottles from the outside source because the manufacturing costs are higher than the purchasing costs and the fixed costs.
The fixed costs are the irrelevant costs that will continue whether bottles are manufactured or purchased.
Answer:
The correct answer is B. Accounting firms are prohibited from providing many types of consulting services to the companies they audit.
Explanation:
The main reason for this policy is that it does not allow conflicts of interest to arise that eventually produce widely known cases of fraud, such as those presented at the Enron and Worldcom companies.
The Enron case broke out in the U.S. when that energy giant announced what was once the biggest bankruptcy in the history of the country, with a debt of 31,000 million dollars, something overcome a few months later by the collapse of another colossus, WorldCom.
In June 2002 WorldCom, the second US telephone. and of the world, he admitted that he had lied in his accounting books for almost 4,000 million dollars and his actions - which shortly before touched his maximum of 16 dollars - collapsed to 20 cents. His bankruptcy exceeded Enron's: $ 35 billion of liabilities.
