Answer:
Hence the answer is given as follows,
Calculation of Activity rate:-
Answer:Expected return on stock = 10.64%
Explanation:
According to CAPM,Capital Asset Pricing Model CAPM, The expected
return on stock is given as
Er = Rf +β( Mr - Rf)
which means
Expected = Risk free rate + Beta x (Market rate - Risk free rate)
Therefore,
Expected return on stock = 2.4% + 0.88 x (12.1% - 2.4%)
=2.4% +0.88 (0.118)
=2.4% +0.10384
= 0.1064
10.64%
Expected return on stock = 10.64%
Answer:
b. It may be used to estimate inventories for interim statements.
Explanation:
As we know that
Gross profit = Sales - the cost of goods sold
By doing the inventory valuation through the gross profit method, it estimated inventories for interim statements as these statements are covering the financial information that is less than a year so that the proper analysis could be made and in this, no auditing is required.
Therefore, for interim statements, the gross profit method is required.
Explanation:
he has to take as much time as he can
Answer:
Option B.
Explanation:
An executory contract is one in which unperformed obligations remain on both sides, or one where both parties in a contract have continuing obligations to perform. Therefore is a contract that is made by two parties in which the terms in the contract are to be fulfilled at a later date. The contract shows that both sides still have duties to perform before it will become executed.
For example, contracts for the sale of goods in which the goods have not been delivered by the seller and the buyer has not paid, are executory contracts.
Therefore, as we can see from the scenario above, the contract is executory because, although Hong has replaced the tire, Francie is yet to pay, therefore, Francie has not performed her pert in the contract, making it an executory contract.
