The answer to fill in the blank would be C) Self-evaluation.
Answer:
Peridot should report net cash outflows from investing activities of: $46 million
Explanation:
Peridot Corporation
Statement of cash flows (extract)
$ in millions
Purchase of machinery ($36)
Proceeds from sale of land 70
Cash paid to acquire office equipment (80)
Net cash flows from investing activities ($46)
Note that reacquired common stock belongs to financing activities section of the cash flows, while gain from sale of land and investment revenue belong to operating activities section of the cash flows
$396,200 + 61,250 + 27,600+ 9,000+ = 479,000 dollars
Answer:
C. The market demand for the product
Explanation:
Monopoly is a market situation whereby the market is characterized with having a single seller and multiple buyers. Here, the seller faces no competition as he is the only one selling that particular product in the market. The monopolist faces a downward sloping market demand curve. As a result, as the monopolist increases its output, for every additional unit of output, the process must fall. Thus, leasing to the consequent fall in the marginal revenue. Thos os because, since he is the only sellers in order to sell more outputs he must reduce the prices oer each output.
Answer:
18.80%
Explanation:
Data given
Risk free rate = 4%
Beta = 1.85
Market return = 12%
The computation of rate of return is shown below:-
Using CAPM
Rate of Return = Risk free rate + Beta × (Market return- Risk free rate)
= 4% + 1.85 × (12% - 4%)
= 4% + 1.85 × 8%
= 4% + 14.8%
= 18.80%
Therefore for computing the rate of return we simply applied the above formula.
