Answer:
A
Explanation:
Marginal external benefit is an extended benefit received by a thirty party, that is, people that are not directly involved as primary intended receiver of a good or service. Although the initial product or service benefits one party in particular, it is also an authomatic effect that brings benefit to other than the consumers of that product or service.
A) exit because she leaves the unfavorable situation
Answer:
The cost of equity capital is 8.24%
Explanation:
The cost of equity capital of a firm is the required rate of return on a firm's equity. In case of common equity, the required rate of return (r) can be calculated using the CAPM approach. The formula for required rate of return or cost of equity capital under this model is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the risk premium on market
r = 0.025 + 0.77 * 0.0745
r = 0.082365 or 8.2365% rounded off to 8.24%
Answer:
$2.5 million
Explanation:
Conrad construction estimated its total costs at $16 million and a gross profit of $4 million (25% of costs incurred).
If the company incurred in $2 million costs during this year, it can estimate its gross profit at $500,000.
So the total revenue that it should report for the year is $2.5 million (= $2 million + $0.5 million)
Answer: Please see explanation column for answer.
Explanation:
a) Journal to record issuance of Installment notes
Date Account Debit Credit
Jan. 1, 2016 Cash $65,000
Notes payable $65,000
b) Journal to record First annual note payment
Date Account Debit Credit
Jan. 1, 2017 Interest expense $3,900
Notes payable $11, 531
Cash $15,431
