Student Loan:
- borrowed money that needs to be repaid
- part of credit history
Grant or Scholarship
- given on the basis of financial need
- Given based on academic achievement and financial need
The major difference between loans and scholarships is that loans will have to be repaid and scholarships do not.
Answer:
b. 320000
Explanation:
In order to calculate the joint cost of Gorp we need to understand what the method means and how it's used to calculate it. The adjusted sales method is used to allocate joint costs based on the prices the products are sold.
First of all we need to calculate the percentage of Selling price of Gorp to that of the total selling price of both Gorp and Gumm.
I.e: 60 ÷ (60+30) × 100
SP % of Gorp= 66.67%
Now we calculate joint cost allocated to Gorp.
Total joint cost of both Gorp and Gumm = $480000
Joint cost of Gorp = $480000 × 66.67%
Joint cost of Gorp = $320,000
Answer and Explanation:
The computation is shown below:
As we know that
According to the Capital Asset Pricing Model (CAPM) formula
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
And, the market rate of return - Risk-free rate of return is also known as the market risk premium
As we can see that the Alcoa contains high beta as compared to Hormel Foods so the Alcoa has a higher equity cost of capital
And, the higher rate is
= (Excess return of the market) × (Alcoa beta - Hormel foods beta)
= (3%) × (1.85 - 0.39)
= 3% × 1.46
= 4.38%
