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Nutka1998 [239]
3 years ago
10

Which statement is correct?

Business
1 answer:
AlladinOne [14]3 years ago
5 0

Answer:

An underpriced security will plot above the security market line.

Explanation:

A security market line is plotted from capital asset pricing model(CAPM) equation that shows relationship between return of a stock and beta coefficient. An underpriced security means that it is sold below its intrinsic value hence its rate of return is higher than the return calculated by CAPM. Since the existing rate of return is higher, it will plot on the right side of the security market line which means it's above it.

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A company budgets the following merchandising purchases: April: $70,000; May $90,000; June: $60,000. All purchases are on accoun
velikii [3]

Answer:

$77,500

Explanation:

The computation of the cash disbursement for June month is shown below:

= June purchase × month percentage given + May purchase × following month percentage + April purchase × second following month percentage

= $60,000 × 25% +$ 90,000 × 50% + $70,000 × 25%

= $15,000 + $45,000 + $17,500

= $77,500

The remaining percentage would be

= 100% - 25% - 50%

= 25%

3 0
3 years ago
One year ago, you purchased a stock at a price of $43.20 per share. The stock pays quarterly dividends of $.18 per share. Today,
gizmo_the_mogwai [7]

Answer:

Capital gain = $2.16

Explanation:

The return on equity is the sum of the dividends earned and capital gains made during the holding period of the investment.  

Dividend is the proportion of the profit made by a company which is paid to shareholders.  

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.  

Therefore, capital gain  as follows:  

Capital gain = $45.36-43.20

Capital gain = $2.16

8 0
3 years ago
The Town of McHenry has $13,000,000 in general obligation bonds outstanding and maintains a single debt service fund for all deb
VLD [36.1K]

Answer:

Dr Cash $13,000,000

Cr Other financing source- refunding of existing debt $13,000,000

Dr Other financing uses - refunding of existing debts $13,000,000

Cr Cash $13,000,000

Explanation:

Preparation of the Journal entries to record the transaction on the books of the debt service fund.

Based on the information given we were told that the Town of McHenry has the amount of $13,000,000 in general obligation bonds outstanding in which On July 1, 2017, a current refunding of the amount of $13,000,000 took place which means that the Journal entries to Record the transaction on the books of the service debt fund will be :

Dr Cash $13,000,000

Cr Other financing source- refunding of existing debt $13,000,000

Dr Other financing uses - refunding of existing debts $13,000,000

Cr Cash $13,000,000

4 0
3 years ago
According to the ________ argument, governments should temporarily support new industries until they have grown strong enough to
DiKsa [7]

Answer:

The right answer is "Infant industry".

Explanation:

  • An economic phrase that is used to characterize the organization through its early phases of developmental stage, is determined as the Infant industry argument.
  • This means that a freshly created industry seems to be a newborn industrial sector, requires authorities to either support and/or safeguard certain businesses through regulations.
3 0
3 years ago
Which of the following costs is a mixed cost? a. straight-line depreciation on factory equipment b. electricity costs of $3 per
Ksenya-84 [330]

Answer:

correct option is d. rental costs of $10,000 per month plus $0.30 per machine hour of use

Explanation:

solution

The combined cost is one in which the factor is variable and constant.

Sometimes, even the total cost is difficult to separate.

The chosen option also includes a fixed cost that costs $ 5,000 per month.

The cost per hour of the machine increases  0.30 per hour.

This is variable because the entire machine depends on the number of hours used.

The other three are completely variable, such as salary, and are not deductible or cost of electricity.

3 0
4 years ago
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