Answer:
The firm set as the required rate of return for the project is 14.732%
Explanation:
For computing the required rate of return, the following formula should be used which is shown below:
= Risk free rate of return + (Beta × market risk premium) + adjustment
where,
Risk free rate of return is 4.1%
Beta is 1.19
Market risk premium is 7.8%
Adjustment is 1.35%
Now put these values to the above formula
So, the value wold be equal to
= 4.1% + (1.19 × 7.8%)+ 1.35%
= 4.1% + 9.28% + 1.35%
= 14.732%
The standard deviation is irrelevant. Therefore, it is not considered in the computation part.
Hence, the firm set as the required rate of return for the project is 14.732%
Answer:
truth of lending act
Explanation:
laid the foundation for consumer protection
An augmented product is something that has physical and non-physical attributes that add to the value of the product itself.
Answer:
patent 301,350 debit
cash 301,350 credit
franchise 633,600 debit
cash 633,600 credit
development expense 189,000 debit
cash 189,000 credit
year-end adjustment:
amortization expense 50,225 debit
patent 50,225 credit
amortization expense 31,680 debit
patent 31,680 credit
Explanation:
The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.
They will be adjusted at year-end for amortization:
301,350 / 6 = 50,225 amortization on patent
633,600 / 10 = 63,360 amortization on franchise
As it was concede on July 1st then, we will do half-year
63,360 / 2 = 31,680
The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.
Answer:
A. $192,000
Explanation:
The computation of the labor related overhead cost is shown below:
= (Labor related overhead cost) ÷ (Total direct labor hours) × direct labor hours of X
= ($480,000) ÷ (16,000 hours + 24,000 hours) × 16,000 hours
= $192,000
hence, the correct option is A.
