Answer:
c. $125.00
Explanation:
Let us assume the x for invested in portfolio
Invested proportion × expected return of the optimal portfolio + (1 - invested proportion) × risk free rate = expected return
x × 7% + (1 - x) × 3% = 8%
7% x + 3% - 3% x = 8%
4% x = 5%
X = 1.25
Now the invested amount would be
= 1.25 × $500
= $625
So, the borrowed amount would be
= $625 - $500
= $125
Answer:
Freight Forwarder
Explanation:
The Freight Forwarder can be an individual person or a company which organizes the shipments for a person or company to get goods or products transferred from the manufacturer to the customer or the market i.e the final destination of distribution.
Forwarders involves with a carrier or with the number of carriers to transfer the goods.
Answer:
B. The difference between sales revenues and the costs associated with those sales
Explanation:
The amount of profit made by the company after deducting the total costs which have been incurred in the making and the selling of the product is said to be gross profit. The gross profit is calculated by subtracting the amount of revenue and the cost of the goods sold. Fixed cost is not included in the gross profit. It includes only variable costs.
Answer:
Option C. Debit Cash and credit Stock Investments
Explanation:
The reason is that in the equity method of recording the dividends receipts, it is always deducted from the stock investment and the relevant share of reported net income of the associate is added to the stock investment.
So mathematically,
Stock Investment Under Equity Method = Opening Value for the year + Share of Net Income - Dividend received
Stock Investment Under Equity Method = $300,000 + $160,000 * 25% + $60,000 * 25% = $325,000
The above treatment shows that the recording of dividends include credit to stock investment and the cash receipt is always debited.
So the double entry would be:
Dr Cash $15,000
Cr Dividends $15,000
So the option C is correct.
Income Approach seems to fit best but i'm not quite sure.
Sorry if it's wrong.
