Answer:
Option B. Treasury Stock for $1,200
Explanation:
The reason is that when 1,000 shares which has $2 par value and were issued at $10 per share, the journal entry was:
Dr Cash Account $10,000
Cr Common Stock $2,000
Cr Paid In Capital $8,000
But when 100 shares were repurchased at $12 per share, then the accounting treatment would be
Dr Treasury Stock $1,200
Cr Cash Account $1,200
So the correct option is option B.
If Isaac is looking for a business angel, the best chance
that he may be able to find one and to know where to look is by having to
contact people that are involved with business associates, lawyers and even
accountants.
Answer:
C. A decrease in the quantity demanded
Explanation:
Price Elasiticity
The law of demand and supply would usually hold that an increase in prices will result in a decrease in demand. Furthermore, an increase in demand generates a corresponding increasing in supply as well.
<u>When the demand of a product is sensitive to the changes in price, then we say that price of the product is elastic</u> but if the product demand not strongly influenced by price then we say that the pricing is inelastic.
In the case of the lettuce, we can say that the price is elastic, because there is a sensitive reaction between an increase in price from $1 to $2 which immediately leads to a halfing of the quantity demanded. The price is elastic such that an increase in price leads to a decrease in quantity demanded.
Answer:
(2) 4%
Explanation:
The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;
Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2
Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%
Solving for this we get the risk free investment at 4%.
