Answer:
5%
Explanation:
The security is 12.5%
The stock beta is 1.9
The risk free interest rate is 3%
Therefore the expected market return can be calculated as follows
12.5= 3 + 1.9×Market return
12.5= 3 + 1.9market return
12.5-3= 1.9market return
9.5= 1.9market return
market return= 9.5/1.9
= 5%
Hence the expected market return is 5%
Answer:
199.02 units
Explanation:
The computation of the economic order quantity is shown below:
Data provided in the question
Annual demand per year = 5,750 units
The Cost of each units = $96
The inventory carrying cost per unit per year = $9
The average ordering cost per order = $31
So, economic order quantity is
= 199.02 units
Hence, the economic order quantity is 199.02 units
Answer:
FALSE
The statment is false, the gain is 15,000
Explanation:
When there is commercial substance the exchange of long-term assets will recognize a gain or a loss on exchange.
When there isn't the diference will be adjusted using the value of the new asset.
In this case <u>we have commercial substance,</u> so the buyer will report a gain on exchange for 15,000 which is the allowance made by the seller.
The value has 15,000 trade-in allowance. Which means it value is for 25,000
So the diference between the current fixed asset and the new one is 15,000
25,000 - 10,000 = 15,000
The statment is false, the gain is 15,000
Answer:
Nothing
Explanation:
Automatic premium loans provision is a benefit which is provided to the clients who already have a life insurance policy. It helps them to pay the premium from any cash value which is due. This provision is structured to help the clients and normally insurance companies charge no additional premium cost. It helps to prevent lapses in the policies.
Answer: ($60,000)
Explanation:
Fixed cost is a cost that doesn't vary alongside production level. It should be noted that the relevant cost for production will be addition of the direct materials to the direct labour and the variable maufacturing overhead. This will be:
= $60,000 + $80,000 + $100,000
= $240,000
The relevant costs that will be bought will be:
= 30,000 × $10
= $300,000
Therefore there'll be decrease in net income by:
= $300,000 - $240,000
= $60,000
The answer will be ($60,000)
