Answer:
option (b) 12.77 percent
Explanation:
Data provided in the question:
Expected return = 15.72% = 0.1572
Beta = 1.33
Risk free rate = 3.82% = 0.0382
Inflation rate = 2.95% = 0.0295
Now,
Expected return = Risk free rate + Beta × (Expected market return - Risk free rate)
or
0.1572 = 0.0382 + 1.33 × ( Expected market return - 0.0382 )
or
0.119 = 1.33 × ( Expected market return - 0.0382 )
or
Expected market return - 0.0382 = 0.08947
or
Expected market return = 0.12767
or
Expected market return = 0.12767 × 100% = 12.767% ≈ 12.77%
option (b) 12.77 percent
Answer:
The administrative expenses in the planning budget for June would be closest to:
- d. $5,670 ⇒ $5,400 + (2,700 x $0.10) = $5,400 + $270 = $5,670
The net operating income in the planning budget for June would be closest to:
- c. $16,220 ⇒ ($47.80 x 2,700) - [$50,200 + (2,700 x $23.20)] = $129,060 - ($50,200 + $62,640) = $129,060 - $112,840 = $16,220
The medical supplies in the flexible budget for June would be closest to:
- d. $18,440 ⇒ $1,700 x (2,700 x $6.20) = $1,700 + $16,740 = $18,440
Answer:
d) Inventory
Explanation:
In the given question, the LA galaxy company has an issue with the idle production capacity. And the production is of the inventory only, so the other options like Inseparability, Inconsistency, Intangibility, Irrationality are not appropriate in the given example
Thus, the most appropriate option is of inventory as the question is talking about the production capacity so, of inventory the production capacity can be measured.
