Answer:
1.
Required rate = risk free rate + beta (market rate – risk free rate)
.12 = 0.0525 + 1.25(X – 0.0525)
1.25X – 0.065625 = .12 – 0.0525
1.25X = 0.0675 + 0.065625
X = .1333125/1.25
= 0.1065
Marker risk premium = market rate – risk free rate
= .1065 – 0.0525
= 0.054 (A)
2.
Beta of portfolio = (5000000/5500000)* 1.25 + (500000/5500000)* 1
= 0.90909* 1.25 + 0.090909* 1
= 1.136 + 0.090909
= 1.2273
3.
Required rate = risk free rate + beta (market rate – risk free rate)
= 0.0525 + 1.2273* 0.054
= 0.0525 + 0.06627
= .11877 or 11.88%
Answer:
The principle in Law 'Nemo dat quod non habet' states that an individual connot give what he does not have
Indeed Tom can rescind the contract with Matthew as he possesses voidable title to the balls
Explanation:
Until consideration has moved from Matthew to Tom the validity of the agreement/Contract remains inconclusive.
Considering his Account is not funded means he has no valid title to the Balls, he is merely in possession of the Balls but not the Owner.
Tom can sue demanding a return of the Balls irrespective of Matthew having sold them to Aaron.
Another illustration could be given of a thief who sells off a property. Inspite of the Buyer being unaware, because the thief has a voidable title it makes the transaction invalid.
Answer:
Natural:
b.A diamond company that owns nearly all of the world's diamond mines.
d.A soda company that spends over $3 billion on advertising every year.
e.A waste-treatment plant that cost a lot to build even though it costs only two cents to treat each gallon of waste.
Government
a.A small-town bar that is the only establishment in the county licensed to serve liquor.
c. A pharmaceutical company receives a patent for a new cancer-fighting drug.
Explanation:
Government barriers are licenses or patents that prevent future firms from entering, natural is everything else.
Answer:
The inspecting costs should be allocated to the Basic model using ABC costing is $30,600
Explanation:
The computation of the inspecting cost is shown below:
= Total number of basic model inspection + the total number of inspection
where,
Total number of basic model inspection equals to
= Number of units produced ÷ every units produced
= 3,400 units ÷ 100
= $34
And, the total number of inspection equals to
= Total inspection cost ÷ number of inspection
= $84,600 ÷ $94
= 900
The number of inspection includes
= total number of basic model inspection + the total number of luxury model inspection
= $34 + $60 (600 units ÷ 10)
Now put these values to the above formula
So, the value would equal to
= 900 × $34
= $30,600