Answer:
Risk-free rate (Rf) = 3%
Market return (Rm) = 11%
Beta (β) = 2.8
Ke = Rf +β(Rm - Rf)
Ke = 3 + 2.8(11 - 3)
Ke = 3 + 2.8(8)
Ke = 3 + 22.4
Ke = 25.4%
Explanation:
Cost of retained earnings is a function of risk-free rate plus beta multiplied by risk-premium. Risk premium is the difference between market return and risk-free rate,
Answer:
Refers to the oscillation of production
Explanation:
The term economic cycle refers to the movements of prosperity and decay in economic activity (GDP), that is, the alternations that occur between periods of growth and economic recession over time. Cycles affect business, because in a prosperous period the business environment generates higher returns, while in the recession phase it becomes unfavorable due to the unstable environment.
Answer:
Credit to cash for $3,000
Explanation:
Based on the information given the appropiate the journal entry to record payment of this invoice after the discount period has expired is: CREDIT TO CASH FOR $3,000 which is calculated as (1/2*$6,000).
Credit to cash for $3,000
(To record payment of invoice after the discount period has expired)
<u>Answer:</u>
Excise tax :$0.30 tax on a gallon gasoline
Consumption tax : 20% tax on wages earned
Income tax : 9% tax on the sale of luxuries
<u>Explanation:</u>
Excise tax are the taxes charged to individuals on purchase of certain goods. Excise taxes are included with the price of the product. One of the major excise tax is charged on the gasoline for vehicles.
Consumption tax are the indirect taxes that are charged on usage of goods and services. They are collected in the form of sales tax and value added tax.
Income tax is the tax collected by the government for earning money through business or work.
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:
Variable costs per unit:
Manufacturing:
Direct materials $ 6
Direct labor $ 9
Variable manufacturing overhead $ 3
Variable selling and administrative $ 4
Fixed costs per year:
Fixed manufacturing overhead $ 300.000
Fixed selling and administrative $ 190.000
During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $50 per unit.
The four steps of writing an income declaration are: to identify sources of sales, in addition to profits from investments, for an instance pick out business enterprise prices and losses incurred over the same period. Consolidate sales, charges, profits, and losses by means of category, payee, or some other factor.
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