Answer:
The expected rate of return on the market portfolio is 14%.
Explanation:
The expected rate of return on the market portfolio can be calculated using the following capital asset pricing model (CAPM) formula:
Er = Rf + B[E(Rm) - Rf] ...................... (1)
Where:
Er = Expected rate of return on the market portfolio = ?
Rf = Risk-free rate = 5%
B = Beta = 1
E(Rm) = Market expected rate of return = 14%
Substituting the values into equation (1), we have:
Er = 5 + 1[14 - 5]
Er = 5 + 1[9]
Er = 5 + 9
Er = 14%
Therefore, the expected rate of return on the market portfolio is 14%.
Answer:
Retained Earning (Dr.) $295,000
Stock Dividend Payable (Cr.) $295,000
To record stock dividend
Retained Earnings (Dr.) $157,800
Cash (Dr.) $157,800
To record cash dividend
Explanation:
Statement of Shareholder's Equity
Retained Earnings Beginning Jan 21 $1,275,000
Net Income $2,250,000
Cash Dividend $157,800
Stock Dividend $295,000
Retained Earning Ending $3,072,200
Answer:
D.
Explanation:
The factors that infuence a consumer's decision of buying product are multiple. It can be internal, external, economic, cultural, etc.
These factors include psychological factor, social factor, cultural factor, situational factor, etc.
Many times it's psychological factors such as moods. If a person is in bad or good mood, it will affect his behavior to buy a product. Culture or social life also influences consumer's buying habit. Some buy under peer pressure or to have status in society.
Therefore, option D is correct.
Answer:
5000 partial depreciation
Explanation:
straight line formula is = <u>cost - scrape value</u>
useful life in years
since there is no residual value (scrape value) therefore, we divide <u>100,000 </u>
5
the answer we get 20000 per year depreciation. but the equipment is bought on 1st oct, and if assume that the year ends on Dec, 31 so it is measure for 3 month depreciation which is 5000.
Answer:$616
Explanation:
The insurance policy is a policy on an annual basis in which premium are paid in advance to enable the insurance firm to provide cover for the clients.
Cost of insurance
$0.84* ($88000/100)
= $732.92 per annum
However since the insurance was cancelled after 10 months he will only be responsible for 10 months.
$739.2/12*10
=$616