Answer:
The right solution is "4.55%".
Explanation:
Given that,
Expected return,
= 10.1%
Risk-free rate,
= 3.5%
Beta,
= 1.45
Now,
The market risk premium will be:
⇒
⇒
By putting the values, we get
⇒
⇒
⇒ (%)
Answer:
b
Explanation:
I know everything trust me
Answer:
False
Explanation:
The reason is that accrual concept says that the income must only be realized when the revenue are earned which means that the company has delivered her consideration (The part of the service that is delivered to the customer which has monetary value). So the income earned is equal to the monetary value of the two suits they had designed till June 30. So the double entry would be:
Dr Revenue accrued 49000/10suits *2 suits = $9800
Cr Trade Receivables $9800
So saying that the service revenue of $12,250 must be accrued is totally false statement.
Answer:
a. $165,000
b. -$29,500
Explanation:
a. If the allocation takes place, Shirley's income will include both the interest and rent incomes as well as the capital gains:
= Interest income + Rent income + Capital gain income
= 25,000 + 100,000 + 40,000
= $165,000
b. If the allocation happens according to what Betty suggests, Shirley would receive:
= Interest income / 2 - Cost of recovery expenses - Fiduciary admin fees
= 25,000 / 2 - 35,000 - 7,000
= -$29,500