Answer: 0.33
Explanation:
A relative price is defined as the price of a product when its compared with another product. It is the ratio of the prices of two goods. A relative price involves opportunity cost as economic agents usually choose a good at the expense of another after comparing a good with another.
Since the price of good X and Y are $90 and $30 respectively, then relative price of a unit of good Y in respect of good X
= 30/90 = 0.33
Answer:
The options are given below:
A) raw material inventories
B) component parts inventories
C) average aggregate inventories
D) work-in-process inventories
The correct option is A.
Explanation:
Raw materials inventory refers to the total cost of all component parts that are currently in stock and which have not yet been used in finished goods production. In other words raw materials are items, substances, or commodities that are used in the primary production or manufacturing of goods.
The kind of raw materials inventory a company needs will depend on the type of manufacturing that they do.
In the scenario presented above therefore, Playstat uses unprocessed plastic and metals as its raw materials in producing toys.
Answer:
Cost of equity = 10.7%
Explanation:
<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.
</em>
The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
So we substitute
130 = 5.50× (1+r)/(r-0.06)
cross multiplying
(r-0.06)× 130 = 5.50 × (1+r)
130 r- 7.8 = 5.50 + 5.50r
collecting like terms
130 r - 5.50r=5.50 + 7.8
124.5 r= 13.3
Divide both sides by 124.5
r =13.3 /124.5= 0.1068
r=0.1068 × 100= 10.7%
Cost of equity = 10.7%
Answer:
Cash $3,848
Service Charge Expense ($4,000 ×3.8%) $152
To Sales Revenue $4,000
(Being the record of the sale of merchandise is recorded)
Explanation:
The journal entry is shown below:
Cash $3,848
Service Charge Expense ($4,000 ×3.8%) $152
To Sales Revenue $4,000
(Being the record of the sale of merchandise is recorded)
Since sale is made so we debited the cash it increased the assets plus there is service charge expense so the same is also debited as it increased the expenses and at the same time the merchandise is sold so it would be credited as it increased the revenue