Answer:
B; it offers an expected excess return of 1.8%
Explanation:
Here are the options :
A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%
to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Stock A = 5% + 1.2(9% - 5%) = 9.8%
Stock B = 5% + 1.8(9% - 5%) = 12.20%
The next step is to determine the excess return
stated expected return - calculated expected return = excess return
Stock A's excess return = 10% - 9.8% - 0.2%
Stock B's excess return = 14 - 12.20 = 1.8%
Security B would be considered because it has a higher excess return
Answer:
Event 1:
Debit Warranty expense for $8.416.
Credit Warranty liability $8,416.
Event 2:
Debit Warranty liability for $8,416.
Debit Warranty expenses for $11,484.
Credit Cash for $19,900.
Explanation:
Estimated warranty liability = $4,208,000 * 0.2% = $8,416.
Excess of actual and over extimated warranty liability = $19,900 - $8,416 = $11,484
The journal entries will look as follows:
<u>Details Dr ($) Cr ($) </u>
Warranty expense 8.416
Warranty liability 8,416
<em><u>(To record the estimated warranty liability). </u></em>
Warranty liability 8,416
Warranty expenses 11,484
Cash 19,900
<em><u>(To record actual warranty cost). </u></em>
Personal selling is the face-to-face presentation and promotion of products and services.
<h3>What is personal selling?</h3>
Personal selling, commonly referred to as face-to-face selling, is a sales technique where a single salesperson tries to persuade a consumer to purchase a product. It is a type of advertising where the salesperson employs their knowledge and talents in an effort to close a deal.
<h3>What do you mean by sales technique?</h3>
A sales technique is a strategy of selling used by a company's sales team or a salesperson to close more deals and make more money. It's a tactic to improve a company's sales procedure. A sales methodology is adaptable and open to change once its efficacy has been tested through trials.
To know more about salesperson, visit:
brainly.com/question/951074
#SPJ4
In building a new mall,
The input would be : Labor, All materials needed in building a mall
Conversion : Building process
Output : The actual mall itself
hope this helps
