D is the answer I believe
Answer:
Debit Office Furniture account $710
Credit Cash account $170
Credit Accounts payable $710
Being entries to recognize office furniture partly paid for.
Explanation:
When items are purchased using cash, the corresponding credits in such transactions are recorded in the cash account. Where the item is purchased on account (or credit), the credit is posted to accounts payable.
Total worth of the office furniture = $170 + $540 = $710
The total debit for this will be recorded in the office furniture account.
Hence to recognize the transaction,
Debit Office Furniture account $710
Credit Cash account $170
Credit Accounts payable $710
Being entries to recognize office furniture partly paid for.
Answer:
D. Economic value created.
Explanation:
The reason is that the economic value created is the difference between the price the customer is willing to pay and the cost that the product actually costs to the firm.
Following is the formula for calculation of economic value created:
Economic Value Created = Value customer willing to pay - Cost of product
Here the television costs $400 to the firm and the customer is willing to pay $600 for the television. So by putting the values we have:
Economic Value Created = $600 - $400 = $200
So the correct option is option D.
Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%