Answer:
A. 13.8
Explanation:
In this question, we are applying the Capital Asset Pricing Model (CAPM) formula shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4% + 1.4 × (11% - 4%)
= 4% + 1.4 × 7%
= 4% + 9.8%
= 13.8%
The Market rate of return - Risk-free rate of return) is also called as the market risk premium.
Answer:
$ 146,998.94
Explanation:
The applicable formula in this case is the present of annuity due.The amount of annual lease rental needs to be stated to present value equivalence by discounting all future cash flows of lease rentals to today's equivalent worth.
PV=PMT*(1/i-1/i(1+i)^n)*(1+i)
i is the rate of return of 8% OR 0.08
n is the number of years which is 7
PMT is the yearly lease rental of $26143
PV=26143*(1/0.08-1/0.08(1+0.08)^7)*(1+0.08)
PV=26143*(1/0.08-1/0.137106)*(1+0.08)
PV=26143*(12.5-7.293629941
)*(1.08)
PV=26143*5.206370059
*1.08
PV= 146,998.94
Answer:
$230,000
Explanation:
The calculation of treasury stock account balance is shown below:-
Treasury stock account balance on December 31, 2021 balance sheet = Number of shares in treasury stock × Cost per share
= (46,000 - 23,000) × ($460,000 ÷ 46,000)
= 23,000 × $10
= $230,000
Therefore for computing the treasury stock account balance we simply applied the above formula.
Answer:
Correct.
Explanation:
The fixed cost are fixed in the short-run but i nthe long-run all cost are variable as we can decide to don't do a new lease for the machinery once it finish the current one, to move to another place to reduce the rent expense or not purchase an insurance that among other are example of fixed cost that the company can change in the long run.
now, in the short-run we will continue if there is a positive contribution that is, when we pay a portion of the fixed cost with the activities of the firm That way it is better t okeep it open an decrease the loss than closed and pay the full amount of fixed cost
True it is a non market transaction