Answer:
2.2
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
18% = 7% + Beta × 5%
18% - 7% = Beta × 5%
11% = Beta × 5%
So, the beta would be
= 2.2
The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same has applied.
Answer:
a. $118,000
Explanation:
When preparing a cash flow statement, using indirect method we add decrease in current assets and we deduct increase in current assets.
Here it is provided that income reported = $110,000
Opening balance of accounts receivables = $40,000
Closing balance of accounts Receivables = $32,000
Change in Accounts receivables = Closing - Opening = $32,000 - $40,000 = - $8,000
Therefore there is decrease in accounts receivables which is a current asset.
Thus Cash Flow from operating activities
Net Income = $110,000
Add: Decrease in current assets = $8,000
Net cash flow from operating activity = $118,000
Correct option is
a. $118,000
Answer:
a. 750
Explanation:
units completed and transferred out = beginning work in process + units started - ending work in progress = 225 units + 675 units - 150 units = 750 units
The number of units completed and transferred out refer to the total number of finished units during a certain period and their cost is referred to as cost of goods manufactured.
A food surplus in a society can lead to many different things. But based on the principles of supply and demand a surplus of food should lead to a reduction in the price of food, because the quantity supplied is most likely higher than the quantity demanded. In addition a food surplus could lead a country or companies to sell their food surplus internationally or to "dump" the goods on another country or market by selling the goods for a very cheap price most likely lower than the price of the good in that market prior to the entry of this new producer or country with the food surplus.
Explanation:
a. Ralph is in charge of the land, with an implicit right to payment in compliance with right doctrine (North American Oil Consol. v. Burnet (1932, S.Ct.) 286 US 414). This year, however, gross sales are made, although they may be reimbursed later.
b. Unless he returns money to Acme this year, Ralph will be able to claim a deduction of $5,000. Although Ralph originally paid the $1,750 tax on invoice and only saved $1,400 on the reduction of the refund and because the repayment timing resulted in an additional $350 tax. As the amount refunded to Ralph is more than $3,000 according to IRC§ 1341a. This is possible for Ralph to use the taxes accrued in the next year from the same refund to cover taxes. So Ralph will say a tax offset of $1,750 instead of a deduction of $5,000.
c.The sum of the deduction must be more than $3,000, according to IRC § 1341(a). Because Ralph spent just $2,500, he is not liable for tax reduction deductions, but can only claim a refund deduction.
