Answer:
Cost of equity = 11.7%
Explanation:
<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.</em>
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate,-4%, β= Beta-1.10, (Rm-Rf) = 7% ,Ke = cost of equity
Using this model,
Ke=4% + 1.10×7%
= 11.7 %
Cost of equity = 11.7%
Direct Material Cost Per Square Foot= 8+.1= 8.1 per square foot.
Answer:
22,600 units
Explanation:
The computation of the units started is shown below:
Ending work in process inventory units = Beginning work in process inventory units + units started - units completed and transferred
1,100 units = 0 units + units started - 21,500 units
1,100 units = units started - 21,500 units
So, the units started units would be
= 1,100 units + 21,500 units
= 22,600 units
Declining-balance depreciation method does not use an asset's residual value to calculate depreciation expense.
<h3>What is depreciation?</h3>
- In accountancy, depreciation refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used.
- Depreciation is thus the decrease in the value of assets and the method used to reallocate, or "write down" the cost of a tangible asset (such as equipment) over its useful life span.
<h3>What does accounting depreciation mean?</h3>
- During the asset's anticipated useful life, depreciation is allocated in order to charge a fair percentage of the depreciable amount in each accounting period.
- Amortization of assets with predetermined useful lives is included in depreciation.
Learn more about depreciation here:
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Answer:
She is upset because she feel that the compensation is not equal.
Her skills, education, training, and work is the same as David, and for that, the two should be equally compensated.
