Answer:
d. 37.80%
Explanation:
Calculation for what is the expected return on RicciCo
Using this formula
Expected return = Risk free rate + Beta *(Market return - Risk free rate)
Let plug in the formula
Expected return = 9 + 3.2*(18-9)
Expected return = 9 + 3.2*9
Expected return= 37.80%
Therefore the expected return on RicciCo will be
37.80%
Answer:
Cost of the building = $235000
Explanation:
Given below are the following informations:
Purchased building = $200000
Title fees = $20000
Building modification = $15000
Cost of the building = Purchase price + title fees + modification expense
Cost of the building = 200000 + 20000 + 15000
Cost of the building = $235000
Answer:
Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:
a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase from the 30% due to the 30% increase in sales. This is because the Cost of Goods Sold remained constant.
b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because these also increased the operating and administrative expense, even though Sales and Cost of Goods Sold remained constant.
Explanation:
The net earnings to sales express the ratio of the net income to the sales revenue. The net earnings are the result of deducting all costs from sales revenue. The net earnings to total book assets are the same expression as the Return on Assets.
Answer:
Current Assets :
Work in process inventory 23,000
Raw materials inventory 17,000
Finished goods inventory 35,000
Supplies 500
Accounts receivable 4,000
Prepaid expenses 2,000
Short-term investments 25,000
Cash 22,000
Total 128,500
Explanation:
Current Assets are always shows in the order of their liquidity in the Balance Sheet. That is the order in which they are quickly be converted into cash within a period of less than 12 months. Start with the Inventories to cash and cash equivalents as shown above.
Economic profit = Accounting profit - Implicit costs is correct
Explanation:
Economic profit includes income minus implied (opportunity) and explicit (currency) costs, while accounting profit includes benefit minus explicit cost.
The monetary risks a organization has are clear. The cost of competition of the capital of a organization are tacit costs.
The administrative expenses a corporation carries out and the income a business receives are the accounting benefit. This is the income from bookkeeping that comes beyond economic benefit.
Benefit accounting= net currency profit-total expenses.
Economic benefit is the expense of money and incentive of a business paying and the profits earned by an firm.
Company benefit= total income–(explicit cost + implicit cost).
