If the required rate of return is 7.2%, no such security shall be purchased.
<h3>What does the required rate of return mean?</h3>
The required rate of return is the expected percentage of returns on investment at the time the investment is made. The required rate of return, in this case, is 7.2%.
The actual returns earned from purchasing the security for $8000 and receiving returns of $3600 are calculated to be around a 3.6% return.
As a result, if the required rate of return on investment is 7.2%, the security should not be purchased.
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Answer:
Amount of underapplied or overapplied overhead cost for the year
$97000 - Underapplied
Schedule of cost of goods manufactured for the year
Direct Material 3885000
Direct Labor 60000
Overheads 376000
Total Manufacturing Costs 4321000
Add Opening Inventory WIP 400000
Less Closing Inventory WIP (700000)
Cost of Goods Manufactured 4021000
Explanation:
Amount of underapplied or overapplied overhead cost for the year
Underapplied or Overapplied overhead cost =Actual Overhead - Applied Overhead
$473000-$376000= $ 97000
Schedule of cost of goods manufactured for the year
<em>Direct Materials Calculation </em>
Opening 200000
Add Purchases 4000000
Available 4200000
Less Closing Material 300000
Materials Consumed 3900000
Less Indirect Materials 15000
Direct Materials Consumed 3885000
Answer:
C : $686
Explanation:
The computation of the cash received amount is shown below:
= (Sale value of merchandise - returned merchandise) × (100 - discount rate)
= ($1,000 - $300) × (100 - 2%)
= $700 × 98%
= $686
Since the payment is made within 30 days, so the company could avail the discount of 2% and the return goods should be deducted so that the actual amount of cash received can come.
Answer:
B
Explanation:
If investors do not have adequate information about the company they are investing, they would demand an higher rate of return. This would increase the cost of raising capital. So, financial managers who want to raise capital at a cheap rate would have the incentive to disclose information
Answer:all of the above are Correct (D)
Explanation:
Real GDP is a macro economic statistics that measure the value of the goods and services produced by an economy in a specific period , adjusted for inflation. Government use both minimal and real GDP as metrics for analyzing economic growth and purchasing power over time.
