Answer:
10% of the investment = $1,000
Explanation:
The bond guarantees a 10% rate of return and you have $10,000 to invest.
The other investment offers similar risk, so you should demand at least the same rate of return = 10% or $1,000
Investors are risk averse, and the higher the risk, the larger the return expected form an investment. If you have two investments with the same level of risk, you should be able to demand the same return from both investments. If the risk of one investment is higher, then you should demand a higher return from than investment. On the other hand if the investment has a lower risk, you should demand a lower rate of return.
Answer:
The correct option is E.
Explanation:
Trend analysis is the one which states the analysis of the firm's or company' s financial ratios over the period of time and that is used to assess the deterioration or improvement in the financial situation of the company or firm.
Trend analysis is a technique which shows a trend the company financial ratios states and from that it can be determined that it is improving or deterioration.
Therefore, the correct option is E
Answer and Explanation:
The computation is shown below:
1. The standard direct labor hours per brake repairs are shown below:
Actual time spent 5 hours
Setup and downtime (5 hours × 11%) 0.55
Cleanup and rest periods (5 hours × 27%) 1.35
Standard direct labor hours per brake repair 6.9
2. For standard direct labor hourly rate
Wage rate per hour $10
Payroll Taxes ($10 × 10%) $1
Fringe Benefits ($10 × 25%) $2.5
Standard direct labor hourly rate $13.5
3. For the standard direct labor cost per brake repair
= 6.9 hours × $13.5
= $93.50
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