Answer:
A. Constant returns to scale.
Explanation:
In the given output function the labor and capital both have function of 0.5 which means if more labor is required then more capital needs to be injected. In the current output there is constant return to scale as labor and capital both are equally employed.
Answer:
Confirmation of accounts receivables is not required when the account information is immaterial.
An account is said to have immaterial information when the account doesn't reflect any important or relevant information that can affect the opinions or decisions of shareholders, potential investors or creditors of the company.
The auditors have the responsibility of deciding what information is relevant and important and what is immaterial
Answer:
Ke = Rf + β(Rm - Rf)
Ke = 4.3 + 1.12(13.2 - 4.3)
Ke = 4.3 + 1.12(8.9)
Ke = 4.3 + 9.968
Ke = 14.268%
Explanation:
In this question, there is need to calculate cost of equity based on capital asset pricing model. Cost of equity is a function of risk-free rate plus beta multiplied by the difference between market return and risk free rate.
Answer:
-$24,000
Explanation:
Data provided as per the question
Total liabilities decreased = $42,000
Stockholders' equity increased = $18,000
The computation of change in total assets is shown below:-
Assets = Liabilities + Shareholder equity
Change in total assets = Change in liabilities + Change in shareholder equity
= -$42,000 + $18,000
= -$24,000
Answer:
a
Explanation:
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