Answer:
c. 11.05%
Explanation:
The computation of firm's required return is shown below:-
First we need to find out the Market Risk Premium for computing the firm's required return.
Using CAPM, we calculate Market Risk Premium
Expected Future Market Rate of Return = Risk Free Rate on T-Bond + Beta of the Market × Market Risk Premium
10% = 6.5% + 1 × Market Risk Premium
Market Risk Premium = (10% - 6.5%) ÷ 1
= 3.5%
Required Rate of Return = Risk Free Rate + Beta of the Stock × Market Risk Premium
= 6.5% + (1 + 3.00%) × 3.5%
= 6.5% + 1.30 × 3.5%
= 11.05%
Answer:
D: Optimum Order size
Explanation:
Economic Order Quantity (EOQ) is a formula applied in logistic and supply chain management to calculate a business's ideal order size. As the name suggests, the order EOQ provides an order quantity that makes economic sense.
Economies of scale suggest that a bigger order size is better because the business will save transport costs. However, ordering in large quantities increases the cost of holding stock. The economic order quantity strikes a balance between these two important factors.
<span>Before starting walking from the current location "start walk" button should be tapped as 'on my way button' was clicked when you leave your current location to go to the walk.</span>
Answer:
The correct answer is C
Explanation:
The bad debt expense is the expense which is related to the current asset accounts receivable of the company. It is also recognized as the uncollectible accounts expense, which could not collected by the company in the near future.
It result when the company delivered the goods and services on credit and the customer did not paid the amount owed.
So, computing the bad debt expense as:
Bad debt expense = Estimated doubtful account - Credit balance of Allowance for doubtful accounts
= $3,600 - $600
= $3,000
ebts expense is related to a company's current asset accounts receivable. Bad debts expense is also referred to as uncollectible accounts expense or doubtful accounts expense. Bad debts expense results because a company delivered goods or services on credit and the customer did not pay the amount owed.
Answer:
The equivalent interest rate under continuous compounding is 5.8%
Explanation:
Annual compounding
A = P(1+r)^n
P = $1,000
r = 6% = 0.06
n = 1 year
A = 1000(1+0.06)^1 = 1000(1.06) = $1060
Continuous compounding
A = Pe^rt
A = $1060
P = $1000
t = 1 year
1060 = 1000e^r
e^r = 1060/1000 = 1.06
e^r = 1.06
r = ln 1.06 = 0.058 = 5.8%
