Answer:
credit to Work in Process of $59,000.
Explanation:
Based on the information given the appropriate l journal entries to record these transactions would include a: CREDIT TO WORK IN PROCESS OF $59,000
Dr Finished goods $59,000
Cr Work in process $59,000
Dr Cost of goods sold $65,000
Cr Finished goods $65,000
Answer:
Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?
The nominal interest rate = 8.86%.
Explanation:
Average inflation premium = (4%+5%+4.5%+4.5%+4.5%+4.5%+4.5%)/7 = 31.5%/7 = 4.50%
Maturity risk premium for 7 year bond = 0.0006 * (7-1) = 0.36%
Nominal interest rate = real risk free rate + inflation premium + maturity risk premium = 4% + 4.50% + 0.36% = 8.86%.
Therefore, the nominal interest rate for the question given = 8.86%.
Answer:
Beta of Portfolio is 0.98
Explanation:
<u>Given</u>: Investment in security X = $35,000
Investment in security Y = $65,000
Beta of X = 1.5
Beta of Y = 0.70
Beta is a measure of degree of responsiveness of a security return with respect to market return.
The portfolio beta is the weighted average beta of individual stock beta's in a portfolio.
Beta of portfolio = Beta of Stock X × Weightage of money invested in X + Beta of Y × Weightage of money invested in Y
Beta of Portfolio = 1.50 × 
+ 0.7 × 
Beta of Portfolio = 0.525 + 0.455 = 0.98
Answer:
c. (140,000)
Explanation:
Effect on net income of dropping the North Division:
Sales $(900,000)
Variable expenses <u>$450,000</u>
Contribution margin $(450,000)
Traceable fixed expenses <u>$260,000</u>
Effect on net income <u>($190,000)</u>
Since the North Division currently have Net operating income (loss) of ($50,000), so therefore, after dropping the North Division, the overall company net operating loss will be $140,000 ($50,000 - $190,000).
