Answer:
r = 0.235 or 23.5%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
r = 0.06 + 2.5 * 0.07
r = 0.235 or 23.5%
Answer:
d. will include a debit to Unearned Ticket Revenue and a credit to Ticket Revenue for $90,000.
Explanation:
For tickets sold in advance, revenue is not recognized on those tickets until the matches have been played. As such, when payment was received for the tickets, the required entries were Debit Cash account and credit Deferred or unearned revenue.
When the matches are played, revenue is proportionately earned and recorded by crediting revenue and debiting deferred or unearned revenue.
For the 3 games played in September, revenue earned
= 3/8 × $240,000
= $90,000
Answer:
To maximize her profit, Jennifer should abandon the product.
Explanation:
To maximize the profit Jennifer should keep marginal benefit as higher as she can, this could happen keeping marginal revenue higher and marginal cost lower as much as she can.
In this case marginal cost is higher than the marginal revenue, which is resulting as a marginal loss. Each extra batch being sold will add a loss of $10 ($110-$120).
Jennifer should abandon the product because it will reduce the average marginal benefit or total profit gradually.
Answer:
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Answer:
Three ways employers use to pay employees include salary, hourly wage and commission.
Explanation:
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