Answer:
$14,250
Explanation:
Annual depreciation = (Cost - Salvage value) / Useful Life
Annual depreciation = ($60,000 - $3,000) / 8
Annual depreciation = $57,000 / 8
Annual depreciation = $7,125
Accumulated dep. at December 31, 2022 = $7,125 * 2
Accumulated dep. at December 31, 2022 = $14,250
So, the balance in accumulated depreciation using the straight-line method at December 31, 2022 is $14,250.
Answer:
a. 10.04%
b. $82.78
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
a. Expected rate of return or market capitalization = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5% + 0.72 × (12% - 5%)
= 5% + 0.72 × 7%
= 5% + 5.04%
= 10.04%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
b. Now the intrinsic value would be
= Expected dividend ÷ (Required rate of return - growth rate)
= $5 ÷ (10.04% - 4%)
= $5 ÷ 6.04%
= $82.78
Answer:
c.$21,670
Explanation:
The computation of the break-even point in sales dollars is shown below:
Break even point = (Fixed expenses) ÷ (Profit volume Ratio)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $10 -$1.50 -$1.20 - $0.90 - $0.40
= $6
And, Profit volume ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100
So, the Profit volume ratio = (6) ÷ (10) × 100 = 60%
And, the fixed expenses is $13,000
Now put these values to the above formula
So, the value would equal to
= ($13,000) ÷ (60%)
= $21,670
Monopoly is a seller<span> that is selling a unique product in the market and in a </span>monopoly<span> market, the seller faces no competition. </span>
A firm that is a monopoly can ignore the actions of other firms. From the given option the following best describes monopoly:
<span>C: A monopoly is a firm that is the only seller of a product in a given industry.</span>
