Answer:
E
Explanation:
As the capital asset pricing model dictates, assest's systematic risk is captured by beta parameter. If we have beta value of asset then we can calculate expected return.
- expected return = risk free rate + beta * market risk premium
As both A and B have same beta hence they have same expected returns.
Explanation:
Which one of the following is most apt to align management's priorities with shareholders' interests?-Holding corporate and shareholder meetings at high-end resort-type locations preferred by managers-Compensating managers with shares of stock that must be held for a minimum of three years-Paying a special management bonus on every fifth year of employment-Increasing the number of paid holidays that long-term employees are entitled to receive-Allowing employees heiw
Answer:
Have a growth mindset, practice discipline, learn to follow other, set situational awareness
Answer:
a. 8.65 times
b. 42 days
Explanation:
The computation of Receivables turnover ratio and days to collect is shown below:-
a. Receivables turnover ratio = Net sales ÷ Average receivables
= $43,500 ÷ ($5,180 + $4,880) ÷ 2
= $43,500 ÷ ($10,060 ÷ 2)
= $43,500 ÷ $5,030
= 8.65 times
b. Days to collect = 365 ÷ Receivables turnover ratio
= 365 ÷ 8.65 times
= 42 days
Answer:
c. $ 95,000 $ 0
Explanation:
<u>Calculation of cost of land acquired</u>
For the purpose of recording of land acquired in the books of accounts, the accounting values of consideration paid shall be considered as per the generally accepted accounting principles as well as as per International accounting standard (IAS) - 16 'Property, plant and equipment'. Hence the land shall be recorded as per the following amounts:
Consideration paid in cash (A) = $ 5,000
Consideration in kind (land) (B) = $ 90,000 (Refer Note 1)
Total cost of new land (A+B) = $ 95,000
<em>Note 1</em>
Fair value is irrelevant for the purpose of capitalization of asset (IAS-16)
<u>Calculation of Gain/loss on disposal of land</u>
No gain/loss needs to be recorded as the new asset shall be recorded in terms of the book value of old asset (i.e. net impact is already taken into account during the exchange transaction)
