<span>Power given to people because of their superior knowledge about the work is B. expert power.
Experts are people who have superior knowledge of a subject when compared to other people. So if someone thinks that your knowledge about something is greater than that of someone else's, your boss may give you more power than other employees.
</span>
<span>Eileen is in the
development phase in terms of her career development. The development phase is
where the person is starting and learning to develop the activities that he or
she is involved in—in a way to show the person strengths and achieve things
with the use of their performance.</span>
On January 30, the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.
Explanation:
- On November 1, Wright Co. borrowed $20,000 cash from the Third Bank by signing a 90-day, and 6% of interest-bearing note.
- On December 31, it was recorded an adjusting entry to interest expense of $200.
- On January 30, which is the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.
- Interest expense is an expense which is known as a non-operating expense which is shown on the income statement. It also represents interest payable amount when it is borrowed. For Example,
- bonds,convertible debt, loans or lines of credit
- The main difference between the interest expense and the interest paid is that the discount amount and this difference changes the net amount of bond liability.
- Interest expense is an amount determined by the interest rate on an account.
Answer:
What the investors will do depends on whether the actual return will be higher, lower or the same as the required return (Opportunity cost of capital) .
The Actual return can be calculated using the Holding Period Return which is;
= (Earnings(Dividends) + (Ending Stock Price - Beginning Stock Price))/Beginning Stock Price
= (2 + (52 - 50))/50
= 4/50
= 8%
The Opportunity Cost of Capital can be calculated using CAPM.
= Risk Free Rate + beta(Market Premium)
= 4% + 0.75(7%)
= 9.25%
The Opportunity Cost of Capital is greater than the Actual Return from the stock so the stock is a bad buy.
Investors will not invest.
