Answer: Please see explanation for answer
Explanation:
Journal entry to record sale of bonds
Account titles Debit Credit
Cash $50,000,000
Bonds Payable $50,000,000
Answer:
b. 8.92%
Explanation:
Calculation for the portfolio expected return
Using this formula
Portfolio expected return = (Stock A allocated fund x Stock A expected return) + (Stock B allocated fund x Stock B expected return)
Let plug in the formula
Portfolio expected return= (54%*8%) + (46%*10%)
Portfolio expected return=0.0432+0.046
Portfolio expected return=0.0892*100
Portfolio expected return =8.92%
Therefore the portfolio expected return will be 8.92%
Answer:
Private placements
Explanation:
private placements are cheaper to market than public issues
Answer:
Choosing alternative B would increase net income by $17,100
Explanation:
The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:
Alternative A Alternative B Difference between A&B
Revenues $146,100 $185,900 $39800
Costs ($104,400) ($127,100) ($22700
)
Net income $41,700 $58,800 $17,100
Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100
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