Answer: Expected Return = 12%
Explanation:
Yield on short-term government securities = 4%
The expected return required by the market for a portfolio with a beta of 1 = 12%
Now, according to the capital asset pricing model:
Expected Return = Risk-free rate + Beta × (expected return on the market - risk-free rate)
= 4 + 1 (12 - 4)
= 12%
∴ The expected return on the market portfolio is 12%.
Answer:
Following Becky's estimation, the bad debt expense must be equal than the 8% of the total credit, less the value already booked in the balance sheet accounts (doubtful accounts).
Explanation:
In this case, 2,000,000*8%=160,000. Then this 160,000 must be subtracted to 2,200 (160,000-2,200=157,800). Finally, the bad debt expense to be reported is $157,800
Ethics and the law is the best option
Answer:d. $44,100.
Explanation:
The net method is a way a company or firm records its customer's invoice. Under the net method of Accounting for purchases, The record of purchases are recorded considering the cash discount.
Therefore
Purchase price = $45000
Cash Discount at terms 2/10 n/30
$45000 x 2% = $45,000 x 0.02 =$900
Net purchase price = $45000 - $900 = $44,100.
The journal to record the inventory purchased on account using the net method will be
Accounts Titles Debit Credit
Inventory $44,100.
Accounts payable $44,100.
Answer:
Option A-First mover advantage
Explanation:
The first mover advantage is the advantage to the firm who first steps in to take the risks to ensure future benefits in the long term perspective. The particular example includes of TaTa company in India which has more than 90% of the market and was the first company in India that tried to meet requirements of every class of person, small and medium organization to large corporations. This increased production helped the company to gain economies of scale and the country import policies also though do helped the company.
Furthermore, here the advertising firm is not investing but is a means of investment for many investors which means it has no investment in the country and hence there are no forward integration and lateral diversification.
It can also be noted that the company was not transferring its technology in the state option E is also incorrect.
The unrelated differentiation comes when the firm offer its customers a uniqueness of product services which in this case can not be seen prominent. The company advertises similar to other advertises like the other firms and is not pursuing unrelated differentiation so the option C is also incorrect.
