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vodomira [7]
3 years ago
9

To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly fro

m the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 12% discount. During May, employees purchased 13,000 shares at a time when the market price of the shares on the New York Stock Exchange was $15 per share. KL will record compensation expense asscoiated with the May purchases of:
A.) $24,200
B.) $0
C.) $195,000
D.) $23,400
Business
1 answer:
JulijaS [17]3 years ago
4 0

Answer:

d. $23,400

Explanation:

The computation of compensation expense is shown below:-

Total number of shares purchased = 13,000

Market price of share = $15 per share

Compensation expenses per share = issue price at 12% discount

= $15 × 12%

= $1.8

Total compensation expenses = Compensation expenses per share × Total number of shares purchased

= $1.8 × 13,000

= $23,400

So, for computing the compensation expenses we applied the above formula.

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John Maynard Keynes created the aggregate expenditures model based primarily on what historical event? Question 9 options: econo
kirill [66]

Answer: Great Depression

Explanation:

The Great Depression was an economic depression that took place worldwide which was as a result of the crash in the stock market. The Great Depression brought about reduction in GDP of countries due to the fall in demand of goods and services.

John Maynard Keynes created the aggregate expenditures model based primarily on the Great Depression. This method is used to calculate the GDP for a country.

6 0
3 years ago
A. A stock's returns have the following distribution:
babunello [35]

Answer:

Following are the response to the given question:

Explanation:

For question 1:

The weighted average of each return is the expected return.

Expected\ return = 0.1 \times -0.22 + 0.2 \times -0.12 + 0.3 \times  0.17 + 0.2 \times  0.33 + 0.2 \times  0.56 \\\\

                           = 0.1830 \\\\= 18.30\%

For question 2:

Standard deviation is a measured source of the square deviations from the mean via probability.

Std \ dev = [0.1 \times (0.183-(-0.22))^2 + 0.2 \times (0.183-(-0.12))^2 + 0.3\times(0.183-0.17)^2 + 0.2\times (0.183-0.33)^2 + 0.2\times (0.183-0.56)^2]^{(\frac{1}{2})}\\\\

             = 0.2596 \\\\= 25.96\%

For question 3:

For point a:

\text{Coefficient of variation} = \frac{std \ dev}{expected\ return} \\\\

                                    =\frac{0.2596}{0.183} \\\\= 1.42

For point b:

As per the CAPM:  \text{Required return = risk free rate + beta}\times \text{market risk premium}

\to 16\% = 4.5\% + beta\times 5\%\\\\\to beta = 2.3

 In Option I:

When the beta of the stock exceeds 1.0, the change in the required rate of return must be higher than the increase in the premium of market risk. Beta is the degree to which stock return changes as market returns change.

 \text{Required return = risk free rate + beta}\times \text{market risk premium}

Required \ return = 4.5\% + 2.3\times 7\%\\\\Required \ return = 20.6\%\\\\

5 0
3 years ago
Which of the following is a reason for involving in decision making the people who are going to be affected by its results?The d
Assoli18 [71]

They will be more accepting of losses and failures if they are involved from the start.

Answer: Option D

<u>Explanation:</u>

Decision Making is the process where certain alternatives are set by the people who are involved in making a decision about achieving or reaching at a particular thing.

The people who are going to be affected by the result, it is very important to involve them in making the decisions so that if any failure or loss occurs during the working, the people accept it. If they are not involved in the process, they might not take the result very positively.

3 0
3 years ago
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for t
k0ka [10]

Answer:

<em>Product X and Z should be processed further because the additional sales revenue is greater that further processing cost which leads to a profit. </em>

<em>Product Y should not be processed further because doing so would lead to a loss</em>

Explanation:

WP Corporation should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  

Also note that all cost incurred up to the split-off point (i.e $92,000) are irrelevant to the decision to process further .  

                                                                  X          Y             Z

Sales value at split of point                     23        24           25

Sales value after split off point              <u>  27</u>     <u>  27  </u>           <u>32</u>

Additional sales value                               4         3              7

Further processing cost                           <u>( 2)</u>      <u>( 4 ) </u>          <u>( 4)</u>

Net income?(loss)                                     2          (1 )             3

Product X and Z should be processed further because the additional sales revenue is greater that further processing cost, which leads to a profit.

Product Y should not be processed further because doing so would lead to a loss

5 0
3 years ago
Independent of your answer to requirement (1), assume the company plans to produce 620,000 units of finished product in the thre
exis [7]

Answer:

Purchases= 1,595,000 pounds

Explanation:

<u>Giving the following information: </u>

Production= 620,000 units

Beginning raw materials inventory= 730,000 pounds

Desired ending inventory= 25% of the three months requirement.

Each unit requires 3 pounds of raw material.

<u>To calculate the purchases required, we need to use the following formula:</u>

Purchases= production + desired ending inventory - beginning inventory

Purchases= (620,000*3) + (620,000*3)*0.25 - 730,000

Purchases= 1,595,000 pounds

6 0
2 years ago
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