Answer:
First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.
= Annuity * Present value interest factor of annuity due, 5 years, 7%.
= 37,400 * 4.3872
= $164,081
Date Account Details Debit Credit
Dec. 31, 2019 Lease Receivable $164,081
Cost of goods sold $104,800
Sales $164,081
Inventory $104,800
Date Account Details Debit Credit
Dec. 31, 2019 Cash $37,400
Lease Receivable $37,400
You should do it yourself because it’s asking for your opinion not mine so in order for it to be correct it needs to come from you
Answer:
The EAR on the investment is 23.79%
Explanation:
Here, we are concerned with calculating the EAR on the stock investment.
Firstly, we start with calculating the return on shares
Mathematically, that is; P1 - P0
From the question P1 = $57.36 while P0 = $54.14
So Return on shares = $57.36-$54.14 = $3.22
We proceed with calculating the Return on shares in percentage
Mathematically;
Return on shares in % = Return on shares/P0 * 100
= 3.22/54.14 * 100 = 5.95%
Lastly we calculate the effective annual interest;
The effective annual interest = 5.95%/3 * 12 = 23.79%
Answer:
0.536
Explanation:
The computation of the correlation coefficient is shown below:-
Therefore for computing the correlation coefficient between the returns on A and B we simply applied the above formula.
So, according to the question the option is not available. The right answer is 0.536 and the same is not considered
