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Firdavs [7]
3 years ago
11

You own a stock which has produced annual returns of 11 percent, 3 percent, 8 percent, and 14 percent over the past four years,

respectively. The arithmetic rate of return is _____ percent and the geometric rate of return is _____ percent.A) 8.50; 8.92B) 8.50; 18.92C) 9.00; 8.92D) 9.00; 9.92E) 9.00; 18.92
Business
1 answer:
Nana76 [90]3 years ago
6 0

Answer:

C) 9.00; 8.92

Explanation:

The arithmetic rate of return is given by:

R_{A} = \frac{11+3+8+14}{4} \\R_{A} = 9.00

The geometric rate of return is given by:

R_{G} =  (\sqrt[4]{(1.11*1.03*1.08*1.14)} -1) *100 \%\\R_{G} =  (1.0892-1) *100 \%\\R_{G} =  8.92

Therefore, the arithmetic rate of return is 9.00 percent and the geometric rate of return is 8.92 percent

The answer is C) 9.00; 8.92.

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Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the followin
kobusy [5.1K]

The consolidation worksheet entries for December 31, 2020, and December 31, 2021 is: Debit Common Stock -Abernethy                           $250000; Debit  Additional paid-n capital – Abernethy $50,000; Debit Retained earnings   $431,110; Credit Investment in Abernethy $731,110.

<h3> Consolidation worksheet entries </h3>

December 31, 2020

Entry S

Debit Common Stock -Abernethy                           $250000

Debit  Additional paid-n capital – Abernethy           $50,000

Debit Retained earnings                                           $431,110

($731,110-$250,000-$50,000)

Credit Investment in Abernethy                               $731,110

(Elimination entry for Abernethy common stock)

Entry A          

Debit Goodwill                                             $107,510

Credit Investment in Abernethy                                            $107,510

($731,110-$250,000+$323,600+$50,000)

(To recognize excess acquisition cost as goodwill)

Entry I            

Debit Equity in Earnings of Subsidiary      $129,000

Credit Investment in Abernethy                           $129,000

(Elimination entry for inter-company income for 2020)

Entry D          

Debit Investment in Abernethy                    $16,000

Credit Dividends paid                                               $16,000

(Elimination of inter-company dividend payments)

Entry E            

No Journal Entry Required

(Unamortized goodwill under the partial equity method)

Entry C          

No Journal entry required

(Goodwill unamortized)

December 31, 2021

Entry S

Debit Common Stock – Abernethy                         $250,000

Debit Additional-Paid-in Capital –Abernethy         $50,000

Debit Retained Earnings –Abernethy                        $431,110

($731,110-$250,000-$50,000)

Credit Investment in Abernethy                             $731,110

(Elimination entry of beginning stockholder’s equity balances of Subsidiary)

Entry A

Debit Goodwill                                                         $145,000

Credit Investment in Abernethy                                $145,000

(To record goodwill balance)

Entry I

Debit Equity in Earnings in Subsidiary                   $176,000

Credit Investment in Abernethy                                $176,000

(Elimination of inter-company accrual for the year 2021)

Entry D

Debit Investment in Abernethy                                $38,000

Credit Dividends Paid                                               $38,000

(Elimination of inter-company dividend payments)

Entry E            

No journal entry is required

Therefore the entries is: Debit Common Stock -Abernethy                           $250000; Debit  Additional paid-n capital – Abernethy $50,000; Debit Retained earnings   $431,110; Credit Investment in Abernethy $731,110.

Learn more about  Consolidation worksheet entries here:brainly.com/question/15128084

#SPJ1

4 0
2 years ago
Cranford Company completed and transferred out 2,700 units in May 2016. There were 300 units in the Work-in-Process Inventory on
Lynna [10]

Answer:

The cost of the work transferred-out during May is $18,630

Explanation:

For computing the cost of work transferred, first we have to compute the conversion cost per unit and material cost per unit

The conversion cost per uni = Conversion cost ÷ (transferred units + work in progress)

= $11,160 ÷ (2,700 + 300 × 30%)

= $11,160 ÷ (2,700 + 90)

= $11,160 ÷ 2,790

= $4 per unit

Now, material cost per unit = Material cost ÷ (transferred units + work in progress)

= $8,700 ÷ (2,700+300)

= $8700 ÷ 3,000

= $2.9 per unit

So, total cost of the work transferred is equals to

= Transferred units × conversion cost per unit + transferred units × material cost per unit

= 2,700 × $4 + 2,700 × $2.9

= $10,800 + $7,830

= $18,630

Hence, the cost of the work transferred-out during May is $18,630

6 0
3 years ago
You can receive 400,000 five years from today or 1,000,000 thirty years from today. what interest rate makes them equivalent?
deff fn [24]

Answer:

3.73%

Explanation:

The computation of the rate of interest that makes the equivalent is shown below:

As we know that

Present value=Cash flow × Present value discounting factor ( interest rate% , time period)

Let us assume the interest rate be x

where,

Present value of $400,000 is

= $400,000 ÷ 1.0x ^5

And,

Present value of $1,000,000 be

= $1,000,000 ÷ 1.0x^30

Now eqaute these two equations

$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30

(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000

1.0x^(30 - 5)=2.5

1.0x^25=2.5

1.0x = (2.5)^(1 ÷ 25)

x =1.03733158 - 1

= 3.73%

3 0
3 years ago
Houston pumps recently reported $185,250 of sales, $140,500 of operating costs other than depreciation, and $9,250 of depreciati
nignag [31]
<span>ANSWER: a
RATIONALE: Shares outstanding 530,000
Price per share $27.50
Total book common equity $5,125,000
Book value per share = Total book equity/Number of shares $9.67
Difference between book and market values $17.83</span>
3 0
3 years ago
Read 2 more answers
Guest expectations +____________=guest satisfaction
avanturin [10]

Answer: C. Perceived Value

Explanation:

When we speak of Perceived value, we speak of how a customer evaluates a good or service in relation to how well it served them especially in relation to similar good or services.

It is essentially the customer, ranking a good or service in terms of how well they feel it fulfilled it's intended purpose.

When guests to an Establishment come with expectations for instance, how well the guests think these expectations are met (perceived Value) is what determines the overall satisfaction of the guest.

Hence the formula, Guest expectations + Perceived Value = Guest Satisfaction

7 0
3 years ago
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