I will gladly appreciate whoever answers this
1 answer:
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Answer:
Least Market Risk - Fitcom Corp. as it has the lowest beta.
Explanation:
According to the given table, as we can see that there are 4 types of stock, 4 investment, 4 beta, and 4 standard deviations. Now, as per the requirement of the question the least market risk to the portfolio of the stock is Fitcom Corp. as it has the lowest beta that is 0.50.
Therefore the right answer is Fitcom Corp.
Answer:
The requirements are missing, so I looked for a similar question. This is a financial lease since the PV of the lease payments represents 97% of the asset's value.
January 1, 2021, equipment leased from Deal leasing
Dr Right of use asset 405,541.20
Cr Lease liability 405,541.20
the right of use asset = PV of lease payments = $60,000 x 6.75902 (PV annuity due, 10%, 10 periods) = $405,541.20
January 1, 2021, first lease payment
Dr Lease liability 60,000
Cr Cash 60,000
December 31, 2021, depreciation expense on leased asset
Dr Depreciation expense 40,554.12
Cr Accumulated depreciation 40,554.12
depreciation expense = $405,541.20 / 10 = $40,554.12
December 31, 2021, interest expense on asset lease
Dr Interest expense 34,554.12
Cr Interest payable 34,554.12
interest expense = ($405,541.20 - $60,000) x 10% = $34,554.12
