Answer:
e. the 3 month projections for the peso and dong will be larger
Explanation:
this question is about a company that imports coffee from Colombia and Vietnam (along with 3 other countries). The report stated an estimation of the future value of the Colombian peso and Vietnamese dong. But that report is outdated and irrelevant now. Since the central banks of Colombia and Vietnam decide to increase their money supply, while the US money supply remains stable, that will result in a higher depreciation of the peso and dong. I.e. their currencies will be cheaper against the US dollar, so the estimations made before are incorrect now. The previous estimates were:
Vietnam
-
23,205.35 Dongs per dollar - Today
- 23,025.00 Dongs per dollar - 3 month projection
Colombia
- 3,163.75 pesos per dollar - Today
- 3,001.25 pesos per dollar - 3 month projection
Since the currencies will depreciate more against the US dollar, both estimates must increase, e.g. probably in 3 months $1 will be worth 24,000 dongs or 3,200 pesos.
Answer:
Option (c) is correct.
Explanation:
Given that,
No. of calculators manufacture = 1,120,000
variable cost = $2,352,000
Fixed cost = $1,232,000
No. of calculators for the special order = 232,000
Variable cost per unit:
= Variable cost ÷ No. of calculators manufacture
= $2,352,000 ÷ 1,120,000
= $2.10 per unit
Income (Loss) from special order :
= Sales - Variable costs
= (232,000 × $16 × 30%) - (232,000 × $2.10)
= $1,113,600 - $487,200
= $626,400
Answer:
r = 0.235 or 23.5%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
r = 0.06 + 2.5 * 0.07
r = 0.235 or 23.5%
The answer is 56250
90,000×((800,000−50,000)÷1,200,000)
=56,250
Answer and Explanation:
The journal entries are shown below:
On Jan 1, 2014
Unearned compensation Dr. $45,000
To paid in capital in excess of par $35,500
To common stock $9,500
(Being the unearned compensation is recorded)
On Dec 31,2014
Compensation expense Dr. $15,000 ($45,000 ÷ 3 years)
To unearned compensation $15,000
(Being one year compensation became due is recorded)