Answer:
The correct answer is Option A.
Explanation:
The overall effect this declaration would has on the retained earnings would be determined using the current market value, meanwhile the effect on common stock would determined using the par value.
Stock dividend declared = 10% x 80,000 shares x $10 = $80,000
The effect on common stock will be = 10% x 80,000 shares x $5 = $40,000
So, paid in capital in excess of par value common stock is $80,000 - $40,000 = $40,000.
Necessary accounting entries
Debit Retained earnings $80,000
Credit Common stock $40,000
Credit paid in capital in excess of par value common stock $40,000
<em>(To record declaration of 10% stock dividend)</em>
Answer:
The risk free rate is 3.325%
Explanation:
The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
- (rM - rRF) gives us the risk premium of market
We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,
Let rRF be x.
0.1185 = x + 1.24 * (0.102 - x)
0.1185 = x + 0.12648 - 1.24x
1.24x - x = 0.12648 - 0.1185
0.24x = 0.00798
x = 0.00798/0.24
x = 0.03325 or 3.325%
Answer:
compatibility
Explanation:
In marketing, compatibility refers to how well a product or service matches the markets' values, expectations and needs. Will customers accept the new product or service and use it, or they will not.
A great example of lack of compatibility is the tablet sold by Microsoft in year 2000. It was a financial disaster and really few people even know that the product was offered and even less people actually ever bought it. Customers had no use for tablets in year 2000, but magically Steve Jobs sold millions a few years later. One might think that Apple products are superlative compared to Microsoft's products, but that isn't enough to explain such a failure.
Steve Jobs believed that customers didn't know what they needed, and if you offered a good enough product, they would like it, buy it and use it. Of course, the product that you are selling must be able to satisfy your customers' needs, even if they didn't realize it at first.
But Microsoft struggled to show their customers (in year 2000 Microsoft was the largest company in the world) that they could actually use their tablets to satisfy some type of need. If a company's customers do not realize that a product will satisfy some type of need, they are not going to buy it.
The same happened here. The segway was supposed to be a great innovation, and if the company had done things correctly it probably could have been. The problem with the segway is that it was meant to replace walking, and for short distances really. It was based on the same logic as a remote control for a TV, only that customers never realized it that way.
Answer:Technological advancements.
Explanation: Technological advancement is the overall improvement in the Manufacturing, Organisation, coordinating and use of technology in order to meet the growing needs of Man. Technological advancements can be in different fields such Medical,trade/commerce, Manufacturing etc.
THE ABILITY OF THE GERMAN BREWERY BEING ABLE TO ORDER STATIONERIES FROM ENGLAND USING AN ONLINE FORM IS AN EXAMPLE OF TECHNOLOGICAL ADVANCEMENT.
Answer:
$200
Explanation:
Total variable cost = average variable cost × quantity
$2 × 100 = $200
Variable cost is cost that varies with production.
If production increases, variable cost increases and if production reduces, variable cost falls. E.g. cost of Labour
Fixed cost is cost thay does not vary with production e.g. rent
I hope my answer helps you
