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kirza4 [7]
3 years ago
14

Which of the following statements is CORRECT? (Assume that the risk-free rate is a constant.)a. If the market risk premium incre

ases by 1%, then the required return will increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0.b. The effect of a change in the market risk premium depends on the level of the risk-free rate.c. The effect of a change in the market risk premium depends on the slope of the yield curve.d. If the market risk premium increases by 1%, then the required return on all stocks will rise by 1%.e. If the market risk premium increases by 1%, then the required return will increase by 1% for a stock that has a beta of 1.0.
Business
1 answer:
podryga [215]3 years ago
3 0

Answer:

E. If the market risk premium increases by 1%, then the required return will increase by 1% for a stock that has a beta of 1.0.

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At december 31, 2014 rice company had 300,000 shares of common stock and 10,000 shares of 8%, $100 par value cumulative preferre
vitfil [10]

The company has declared a 100% stock dividend on its common stock will not be considered while calculating the earnings per common shares should be.

Earnings per share = Net Income / Number of equity shares.

where Net Income = $1,520,000

Common equity shares = 300,000

Earnings per share = $1,520,000 / 300,000

Earnings per share = $5.07

Therefore, earnings per common share for year 2015 for Rice Corporation is $5.07

7 0
3 years ago
Mars Inc. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000
Maru [420]

Answer:

keep producing as variable costs are being met.

Explanation:

A firm should shutdown in the short run if price is less than average variable cost. But since price is greater than the average variable cost, the firm should keep producing in the short run.

I hope my answer helps you

6 0
3 years ago
Does A Zebra Think Its Black On White or White On Black??
kotegsom [21]
The zebra has no thought about how it looks. it's more concerned about being able to mate, eat, and avoid predators.
7 0
3 years ago
Larned Corporation recorded the following transactions for the just completed month.
Yanka [14]

Answer with its Explanation:

Part 1: $89,000 in raw materials were purchased on account.

The purchase of raw material inventory on account is treated as increase in raw material inventory and accounts payables. The journal entry would be as under:

Dr Raw Material Inventory $89,000

Cr Accounts Payables              $89,000

Part 2: $87,000 in raw materials were used in production. Of this amount, $76,000 was for direct materials and the remainder was for indirect materials.

The entry would be increase in work in progress by $76,000 & Manufacturing overhead by $11,000 and would decrease the raw material inventory with $87,000.

The journal entry would be as under:

Dr Work In Progress                 $76,000

Dr Manufacturing Overhead    $11,000

Cr Raw Material  Inventory               $87,000

Part 3: Total labor wages of $128,500 were paid in cash. Of this amount, $103,000 was for direct labor and the remainder was for indirect labor.

The direct cost are allocated to the work in progress and indirect costs are allocated to manufacturing overheads.

The journal entry would be as under:

Dr Work In Progress                 $128,500

Dr Manufacturing Overhead    $103,000

Cr Cash Account                                 $231,500

Part 4: Depreciation of $190,000 was incurred on factory equipment.

The depreciation of the factory equipment is an indirect cost and all the indirect costs are charged to manufacturing overhead.

The journal entry would be as under:

Dr Manufacturing Overhead    $190,000

Cr Cash Account                          $190,000

8 0
3 years ago
A clothing store chain tracks the sale of each product at each location. Managers use this information to calculate the organiza
Ksivusya [100]

Answer:Flexible

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According to the question, clothing store tracks the sale at each location so, they are taking a very large base of consumers and they are considering each consumer that is why the quality information is flexible.

Demands of each consumer may vary such that one wants cotton fabric, another wants polyester so this makes the information more flexible as it may vary largely.

3 0
3 years ago
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