Answer: True
Explanation: In simple words, real risk free rate refers to the rate than a borrower can actually get in the market for a specified amount and for a specified period.
Real risk free rate is seen as a measure of how the economy of a country is performing and is calculated by subtracting the inflation rate from the treasury bonds of the govt. which match the durability of the borrower.
It depicts the actual increase in purchasing power as it deducts the impact of inflation over time. Thus, the given statement is true.
Actual budget performance report compares actual performance and budgeted performance based on actual activity level.
<h3>What is a budget?</h3>
A budget serves as a term that describes how to place our needs on our income, it is a way to balance our expenses and income.
Actual budget performance report gives room to
compares actual performance and budgeted performance based on actual activity level.
Learn more about budget at:
brainly.com/question/6663636
Answer: Decrease, decrease
Explanation: Substitute goods are those goods that are used in place of each other. When the price of a substitute good falls, it becomes more attractive to the consumers. Here, wood planks and wood beams are substitutes to each other. So, when price of wood plank falls, demand for wood beams will decrease, shifting the demand curve to the left. As a result, of this the equilibrium price of wood beams and the quantity of wood beams will also decrease.
Solution:
The reporting unit's book value of $250 million meets the market value of $220 million.
Requirement 1:
Determination of implied fair value of goodwill:
Fair value of Center point, Inc. $220 million
Fair value of Center point’s net assets (excluding goodwill) 200 million
Implied fair value of goodwill $ 20 million
Measurement of impairment loss:
Book value of goodwill $62 million
Implied fair value of goodwill 20 million
Impairment loss $42 million
Requirement 2: If the operating unit's market valuation of 270 million dollars surpasses 250 million dollars, there is no depreciation risk.
Answer:
13.44%
Explanation:
Debt to total assets = Total Debt / Total Assets
45% = Total debt / $230,000
Total Debt = $230,000 x 45% = $103,500
As we know
Assets = debt + Equity
$230,000 = $103,500 + Equity
Equity = $230,000 - $103,500 = $126,500
Return on Equity is the measure of financial performance which can be calculated by dividing net income for the year by total shareholder's equity.
Return on equity = Net income for the year / Shareholders equity
ROE = $17,000 / $126,500 = 0.1344 = 13.44%
