The concept of beta impacts financial decision making by providing information volatility or systematic risk of a security.
The information that provided by the concept of beta would take form in a comparison between your chosen securities with other securities that exist in the market. For investors who prefer low risk but small and steady return, they can use the concept of beta to find out the securities with low level of volatility.
Public Debt is the total accumulation of past budget deficits less surpluses.
Below are the amount required to close the account of Harrison's Dog Walking Service Company:
Journal entries
Jan 31
Fees earned No entries
Dr wages expenses $44,230
Cr Rent Expense $15,710
Cr Supplies Expense $15,800
Cr Miscellaneous Expense $2,420
Harrison Taylor capital No entries
Jan 31
Harrison Taylor capital No entries
Harrison Taylor drawing No entries
Answer:
Debt ratio = 0.77 (to 2 decimal places)
Explanation:
The debt ratio of a company is the ratio of the total debt owed to the total assets owned by the company. It is represented mathematically as:
Debt Ratio = Total Debt ÷ Total asset
Total Debt = current liabilities + longminusterm liabilities
Total Debt = 403 + 190 = $593
Total assets = $772
∴ Debt ratio = 593 ÷ 772 = 0.77 (to 2 decimal places)
note that current assets are not used in the calculation because it is a subset of total asset.
Answer:
You will pay $744,680.85 for the policy
Explanation:
Step 1
Since cash flow is a perpetuity, we can derive the following expression;
P.V=C/r
where;
P.V=present value of the investment
C=cash flow
r=annual rate of return
In our case;
P.V=unknown
C=$35,000
r=4.7%=4.7/100=0.047
replacing;
P.V=35,000/0.047
P.V=744,680.8511
744,680.8511 rounded off to 2 decimal places=744,680.85
You will pay $744,680.85 for the policy