Answer: Investors expected the earnings increase to be smaller than what was actually announced.
Explanation:
Abnormal return on an asset such as stock refers to the difference between actual returns and expected returns. As such, if it is positive, that would mean that the actual returns are/ will be higher than the expected/anticipated returns.
TYR had an abnormal return of 3.7% which would mean that the the 35% lower fourth-quarter earnings was higher than investors expected from TYR.
Answer:
The correct answr is C.
Explanation:
Giving the following information:
Cost Machine Hours
January $52,200 20,000
February 75,000 29,000
March 57,000 22,000
April 64,000 24,500
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ highest activity units - Lowest activity units)
Variable cost per unit= (75,000 - 52,200) / (29,000 - 20,000)= 2.53
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 75,000 - (2.53*29,000)= 1600
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 52,200 - (2.53*20,000)= 1600
Answer:
(d)$105,000.
Explanation:
Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored
In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset
In mathematically,
= Book value of machinery - fair value of machinery
= $520,000 - $415,000
= $105,000
Answer:
Inventory at year-end: 344,000
Explanation:
The inventory should add the purchased goods from Pelzer as the possesion is transfer at shipping point.
The sales units to Alvarez should also be included as teh transfer is not complete yet. The term on this transaction are at destination.
Total inventory in transit: 28,940 + 39,800 = 68,740
on hand: $ 275,260
in-transit: $<u> 68, 740 </u>
Total: $ 344,000
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.
