Answer:
the cost of equity capital as per CAPM is 14.71%
Explanation:
The computation of the cost of equity capital as per CAPM is shown below:
As we know that
= Risk free rate of return + beta × (market rate of return - risk free rate of return)
= 5.7% + 1.7 × (11% - 5.7%)
= 5.7%+ 1.7 × 5.3%
= 5.7% + 9.01%
= 14.71%
hence, the cost of equity capital as per CAPM is 14.71%
The same is relevant
One would be getting out of credit card debt.
<span>another would might be having a savings account in case you lose a job.</span>
The answer to this question is the term Theory. A theory is a set of assumptions that is said to be true an correct. A theory can be used as an explanation to a certain problen and this beliefs can sometimes be not yet proven.
Answer:
company sells a limited quantity of high-unit cost items.
Explanation:
A specific identification method can be defined as a method used for determining the ending inventories cost.
Basically, this type of method for costing inventories typically involves doing a well-detailed physical count of each goods bought on a specific date or a particular period of time, so as to determine the exact number of goods remaining by the end of the year's inventory. Therefore, each of the goods purchased are tagged with their unit price and any other additional charges.
Hence, the specific identification method of costing inventories is used when the company sells a limited quantity of high-unit cost items.
Answer:
$48,175
Explanation:
Given:
Cost of the weaving machine = $332,970
Useful life = 8 year or 767,000 bolts production
Residual value = $18,500
Number of bolts produced in the first year = 113,500
Number of bolts produced in the second year = 117,500
Now,
Using the units-of-production method of depreciation
Rate of depreciation = 
= 
= 0.41
Therefore,
Depreciation for the second year
= Rate of depreciation × Number of bolts produced in the second year
= 0.41 × 117,500
= $48,175
