Answer:
2.3
Explanation:
Levered Beta = Unlevered Beta x (1+D/E)
D/E = Debt-to-Equity Ratio
1.4 x (1 + 04 / 0.6) = 1.4 x 1.667 = 2.3
Answer:
See below
Explanation:
Given the following;
Standard hours per unit of output 6.4 hours
Standard variable overhead rate $12.80 per hour
Actual hours 2,650 hours
Actual output 150 units
To calculate the variable overhead efficiency variance, we will use the formula below;
Variable overhead efficiency variance
= (Standard quantity - Actual quantity) × Standard rate
Standard quantity = 150 units × 6.4 = 960
Variable overhead efficiency variance
= (960 - 2,650) × $12.80
= $21,632 unfavourable
Answer:
The answer is below
Explanation:
i) The price elasticity of demand is given by the formula:
Since the price elasticity of demand is greater than 1 hence it is elastic
ii) Since the price elasticity of demand is elastic as a result of increase in fare, hence the total revenue would decrease.
iii)
Since the price elasticity of demand is greater than 1 hence it is elastic
Explanation:
The computations are shown below:
a. Proceeds from the short sale (net of commission)
= Number of shares × (Market selling price per share - commission per share)
= 100 × ($25 - $0.10)
= $2,490
b. The dividend payment is
= Number of shares × dividend paid per share
= 100 shares × $2.50
= $250
c. Total cost including commission is
= Number of shares × (Market purchase price per share + commission per share)
= 100 × ($16.20 + $0.10)
= $1,630
d. The net gain from your transaction is
= $2,490 - $1,630
= $860
