Answer:Expected return on stock = 10.64%
Explanation:
According to CAPM,Capital Asset Pricing Model CAPM, The expected
return on stock is given as
Er = Rf +β( Mr - Rf)
which means
Expected = Risk free rate + Beta x (Market rate - Risk free rate)
Therefore,
Expected return on stock = 2.4% + 0.88 x (12.1% - 2.4%)
=2.4% +0.88 (0.118)
=2.4% +0.10384
= 0.1064
10.64%
Expected return on stock = 10.64%
Answer:
the company should enter into a forward contract.
Explanation:
Based on the information provided within the question it can be said that the in order to achieve this the company should enter into a forward contract. This is a type of contract entered by two parties in which one is obligated to buy while the other is obligated to sell at a fixed price and at a future date regardless of changes in circumstances or economy. Therefore reducing the market risk that they buyer is exposed to.
Katherine would require skills of being able to work with confidence. At client's site, she must have highly polished managerial and observable skills. She must also realize that guidance should be seeked for important stuff.
Answer: Cost of Gods Sold
Explanation:
The Cost of Goods sold in the income statement is calculated thus;
= Opening inventory + Purchases - Closing stock
Looking at the formula above, one can see that closing stock reduces the Cost of Goods sold. If inventory is therefore overstated, it would reduce Cost of Goods sold more than it should which would result in the Cost of Goods sold being understated.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Standard quantity= 7.8 grams per unit of output
Standard price= $6.50 per gram.
During the month the company purchased 27,900 grams of the direct material at $6.70 per gram.
To calculate the material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (6.5 - 6.7)*27,900
Direct material price variance= $5,580 unfavorable.
It is unfavorable because the actual price was higher than estimated.
