Answer:
The expected return on equity for Company Y is:
= 0.21 or 21%
Explanation:
a) Data and Calculations:
Company X Company Y
Market value of assets 1,000 1,000
Equity 1,000 500
Debt 0 500
Expected return on equity 15%
Expected return on debt 9%
Return on Company X = 150 (1,000 * 15%)
Return on Company Y debt = 500 * 9% = 45
Return on Company Y equity = (150 - 45)/500 = 0.21
b) Under perfect capital market conditions, the total return for Company Y will be equal to 150 as in Company X. The rate of return will then be determined after subtracting the interest on debt (500 * 9%). This will leave 105 as the return for equity. This amount is then divided by the value of equity to derive the rate of return.
Answer:
Yes, it is<u> true</u> that If the performance obligation is not highly dependent on, or interrelated with, other promises in the contract, then each performance obligation should be accounted for separately.
Explanation:
A performance obligation exists when an entity provides a distinct product or service.
It is a promise to provide a “distinct” good or service to a customer.
When there are multiple promises in a contract, companies will need to determine whether those goods or services are distinct, and therefore separate performance obligations for to avoid ambiguity.
Performance obligations in each contract can be identified by a company by first considering whether or not the goods or services are distinct.
If distinct, a customer can benefit from the good or service on its own because the good or service is separable from the other goods or services in a contract.
The simple money multiplier if the banks in Ruritania have a required reserve ratio of eight percent will be 12.5.
<h3>What is the significance of money multiplier?</h3>
Money multiplier can be referred to or considered as the total derived after division, finding the reciprocal of the required reserve ratio of an any commercial bank or any financial institution as such. In the above case, the money multiplier will be computed as 1 / 8 × 100 = 12.5.
Therefore, the significance regarding the simple money multiplier has been aforementioned.
Learn more about money multiplier here:
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The answer is almost half. This is the result that they have
found out in the study in which who has the age ranging from sixty five to
sixty nine as middle aged. This study is conducted by Maier, Budner and Lachman
in the year 2000.
In order to help the
student expand his/her knowledge I will help answer the question. This in hope
that the student will get a piece of knowledge that will help him/her through
his/her homework or future tests.
Services cannot be
inventoried, this is a characteristic that can be used to guide the design of
service systems. That is because in design organizations is one of the things
that they remark. They cannot inventory services. The correct answer is
Services cannot be
inventoried.
I hope it helps,
Regards.
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