Answer:
9.5 %
17.3%
Explanation:
The market required rate of return = risk free rate + ( Market Beta × Market risk premium)
= 3.5% + (1 × 6%) = 9.5%
The stock required rate of return = 3.5% + (2.3 × 6%) = 0.173 = 17.3%
I hope my answer helps you
Answer: d. A company paid for an insurance premium of $6,000 on January 1. The insurance is for a year. Failing to make adjustments for the month of January would overstate assets and stockholder's equity by $6,000.
Explanation:
If a company were to pay $6,000 for Insurance for the YEAR in January, this would be recorded as a PREPAID EXPENSE.
This Prepaid Expense will then be apportioned per month over the year to each month as expenses of $500.
Failing to make adjustments for the month of January would not overstate assets and stockholder's equity by $6,000 but by $500.
The item is followed by three dots
The amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.
<h3>
What is depreciation expense?</h3>
- Depreciation expense is the cost of a depreciated asset for a specific period, and it reveals how much of the asset's value was used up in that year.
- Accumulated depreciation is the entire amount of depreciation expense given to an asset since it was placed in service.
- A business spends $84,000 on new display racks with a useful life of 7 years (84 months) and no residual value.
- The corporation would most likely choose a straight-line depreciation technique, which would result in a $1,000 monthly depreciation expenditure ($84,000/84 months = $1,000 per month).
The straight-line technique of calculating depreciation expense is given below:
- = (Original cost - salvage value) ÷ (useful life)
- = ($173,000 - $8,600) ÷ (10 years)
- = ($164,400,000) ÷ (10 years)
- = $16,440
In this method, the depreciation is the same for all the remaining useful life.
Now for the 7 months, the depreciation expense would be:
- = $16,440 × 7 months÷ 12 months
- = $9,590
Therefore, the amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.
Know more about depreciation expenses here:
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The correct question is given below:
A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is ______.
(A) $16440.
(B)$9590.
(C)$8220.
(D)$6850.
Answer: 6.48%
Explanation:
This can be solved using the Quantity theory of money;
MV = PY
When dealing with changes, formula changes to;
% change in Money Supply + %change in velocity = %change in price + %change in real GDP
Velocity has been stable so will be zero.
change in money supply = 3.70% + 2.78%
= 6.48%
