Considering the available information in the question, the <u>cost of equity</u> for this firm is "<u>0.1566</u>."
The <u>cost of equity</u> for the firm is expressed below:
RE = Rf + β × ( E (RM) − Rf );
Here, the RE is the
Rf => risk-free => 3.2 percent;
β => beta => 1.21;
E (RM) => market rate of return => 13.5 percent;
Thus, we have the following formula to compute:
RE = 0.032 + 1.21 × (0.135 − 0.032)
RE =<u> </u><u>0.1566</u>
Cost of equity is a term that is used I'm describing the rate of return firms need for business investment.
In another way, the Cost of equity depicts the rate of return that an individual needs for an equity investment.
Hence, in this case, it is concluded that the correct answer is "<u>0.1566</u>."
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Answer:
d.$18,900
Explanation:
Gross Profit is the net of Sales value and production cost in the period for the units sold. Under absorption costing all the direct and indirect costs incurred in the production of products are included in the total production cost. As the cost is available for 100 units produced we need to calculate the cost of 90 unit and deduct this cost from the sales value to determine the gross profit and then deduct the operating expenses to calculate the operating income.
Sales (90 units) $90,000
Less: Production costs:
Direct materials ( $40,000 x 90/100 ) $36,000
Direct labor ( 20,000 x 90/100 ) $18,000
Variable factory overhead ( 2,000 x 90/100 ) $1,800
Fixed factory overhead ( 7,000 x 90/100 ) <u>$6,300</u>
Total Production cost <u>($62,100)</u>
Gross Profit $27,900
Less Operating expenses:
Variable operating expenses $8,000
Fixed operating expenses $1,000
<u>($9,000)</u>
Operating Income <u>$18,900</u>
Answer:
The correct answer is Option a. The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.
Explanation:
The trial balance is a summary of all the account balances for an organization, usually spooled at the end of the year. The possibility exist that transaction that occurred during the year are not captured, accurately or properly recorded in the books. When the company's financial statements are reviewed at the end of the year, adjustments may be made to the unadjusted trial balance to include transactions previously not recorded, accurately or properly captured in the books of accounts.
The inclusion of these adjustments results in the adjusted trial balance.
Hence Option a which states that the adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts is the right option.
1. The rate of return for each year is 4.05%
<span>2010 $100 $4 => 4%
2011 $110 $4 => 3.6%
2012 $90 $4 => 4.4%
2013 $95 $4 => 4.2%
Average is 4.05%
2. The dollar-weighted rate of return is
-3(4%) - 2(3.6%) + 1(4.4%) + 4(4.2%)
14.75%</span><span /><span>
</span>
Answer:
a person on whom you can rely
Explanation:
it's the correct answer
