Answer:
16.0996% rounded off to 16.1%
Explanation:
We can calculate the standard deviation of a portfolio, that is the total risk of a portfolio, using the following formula,
S.D = √ (w1)² (S.D1)² + (w2)² (S.D2)² + 2 (w1) (w2) (correlation) (S..D1) (S.D2)
Where,
- w1 is the weigh-age of investment in stock/bond 1
- S.D1 is standard deviation of returns of stock/bond 1
- w2 is the weight-age of stock/bond 2
- S.D2 is the standard deviation of returns of stock/bond 2
- correlation is the correlation between the returns of stock/bond 1 and 2
We calculate the S.D of given portfolio,
S.D = √ (0.5)² (0.24)² + (0.5)² (0.12)² + 2 (0.5) (0.5) (0.55) (0.24) (0.12)
S.D = 0.160996 or 16.0996 %
A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is B)False
Answer:
NPV is positive,the project should be accepted
Explanation:
In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.
The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.
Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80
Net present value=$ 151,509.80-$125,374.60=$ 26,135.20
The investment has a positive NPV,hence should be accepted
a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
Answer:
$9800
Explanation:
This question requires us to calculate the employer's payroll taxes
His social security tax = $110000*6.0%
= 110000x0.06
=$6600
His Medicare tax = $110000*1.5%
= 110000*0.015
= $1650
His state and federal unemployment tax = 25000 dollars
State = 25000x5.4%
= $1350
Federal = 25000x0.8%
= $200
Total employers payroll tax
$(6600+1650+1350+200)
= $9800
Answer:
Using the weighted average method, the equivalent units produced by the department were:
= 8,760 units.
Explanation:
a) Data and Calculations:
Units Conversion
Ending inventory 1,560
Units completed 8,370
Units available 9,930
Beginning inventory 1,470 35%
Additional units started 8,460
Equivalent units of production:
Units completed 8,370 8,370 (100%)
Ending inventory 1,560 390 (25%)
Equivalent units of production 8,760
