Id say its A, because entrepreneurs start a business to make a profit.
Answer:
B
Explanation:
Mortgages prevent government regulation of property but involve higher taxes
Answer:
The risk premium on factor 2 = 9.26%.
Explanation:
Let us denote the risk premium of factor 2 as x
Below is the formula we can use to calculate the risk premium of factor 2.
Expected return on stock = (Beta (factor 1)* expected return of 1) +(beta of 2x * risk free reate)
17.6% = (1.45*3.2%) + 0.86x+5%
17.6 = 4.64 + 0.86x+5%
17.6 - 4.64 - 5= 0.86x
7.96 = 0.86x
x = 7.96/0.86 =9.2558
The risk premium on factor 2 = 9.26%.
Answer:
The journal entries to record both transactions should be:
February 1, 2018, repurchase of 1,000 stocks at $47
Dr Treasury stocks 47,000
Cr Cash 47,000
April 10, 2019, treasury stocks were sold at $50
Dr Cash 50,000
Cr Treasury stocks 47,000
Cr Additional paid in capital 3,000
Treasury stocks account is a contra equity account with a debit balance that reduces the value of total stockholders' equity.
