Answer:
The equilibrium expected rate of return is higher for Kaskin than for Quinn.
Explanation:
Option A “The equilibrium expected rate of return is higher for Kaskin than for Quinn” is more accurate because the expected return is calculated by multiplying the risk premium with beta value and then adding with risk-free return. However, if the beta value is high, then the magnitude after multiplying with the risk premium will be high. Moreover, is magnitude will be added to risk-free return to find the expected return. Thus, it can be seen that Kaskin has high beta 1.2 as compared to Quinn’s beta value 0.6. So, the Kaskin has a higher expected return.
Answer:
The correct answer is option (E).
Explanation:
According to the scenario, computation of the given data are as follows:
Equipment = $15,300
Estimated annual depreciation = $3,060
Time period = 1 month
So, Depreciation = $3,060 × 1 ÷ 12
= $255
So, Here journal entry are as follows:
Depreciation A/c Dr $255
To Accumulated depreciation A/c $255
(Being the depreciation is recorded)
Answer:
A)VCPU = VC / UNITS
$8,190,000 / 450,000
=$18.20
B)CONTRIBUTION MARGIN PER UNIT =$ 3,510,000 / 450,000
=$7.80
C)CONTRIBUTION MARGIN RATIO = CONTRIBUTION / SALES
=>30%
D)SALES PRICE = $26
BEP IN UNITS = FC / CONTRIBUTION PER UNIT
= $2254200 / $7.8
=289,000 UNITS
BEP IN $ = FC / PV RATIO
=$2254200 / 30%
= $7,514,000
2 A) SALES REQUIRED = (FC + DESIRED PROFIT ) / PV RATIO
= $(2254200 + 296,400) / 30%
=$8,502,000 / 26
=$327,000units
Explanation:
Well, I don't know if you'll agree, but I think a purpose of a budget is to pace the amount of money that you spend and save. Everybody needs to have a certain amount of money saved in their bank account to take care of themselves when they retire, and a budget helps make that happen since you don't ending up spending almost all of your money. A budget also helps you decide how much to spend on each thing that you buy. For example, you wouldn't want to spend more on toys for your entertainment, but you would spend more on groceries to keep you healthy and alive so you don't starve.
Answer:
Happy Frog Inc.
Modified Internal Rate of Return (MIRR) = (Future value of positive cash flows / present value of negative cash flows) (1/n) – 1
= ($1,400,000 /-$1,198,700) (1/5) - 1
= -1.167932 x -0.8
= 0.934
MIRR = 9.34%
Explanation:
a) Future Value of positive cash flows:
1 $300,000
3 $660,000
4 $440,000
Total $1,400,000
b) Present value of negative cash flows:
0 -$762,000
2 -$436,700 ($550,000 x 0.794)
Total -$1,198,700
c) The Modified Internal Rate of Return for Happy Frog Inc. is greater than its Weighted Average Cost of Capital. Therefore, the project looks very promising and should be accepted.
