Answer:
This equals $12,256.70 (230 x $50.70 + 230 x $2.59)
Explanation:
The value of the portfolio on May 3 is the sum of the market value of the shares plus the sum of the returns in form of dividends to be received.
This value adds the weight of the investment obtained by multiplying the total shares held with its market price to the expected dividend returns on the given date.
Answer:
Portfolio A and Portfolio B
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
The Market rate of return - Risk-free rate of return) = Market risk premium
Let us assume the market risk premium be X
For Portfolio A:
21% = 8% + 1.3 × X
13% = 1.3 × X
So, the X = 10%
For Portfolio B:
17% = 8% + 0.7 × X
9% = 0.7 × X
So, the X = 12.86%
Based on the market risk premium calculations, we can conclude that Portfolio A should be in short position while Portfolio B should be in long position as portfolio B has higher market risk premium than B
Answer and Explanation:
The computation is shown below;
The net profit margin is
= Net income ÷ sales revenue
= $184,000 ÷ $574,000
= 32%
The asset turnover is
= Sales revenue ÷ average of assets
= $574,000 ÷ ($2,142,000 + $1,998,000) ÷ 2
= $574,000 ÷ $2,070,000
= 0.28 times
c. The return on assets is
= Net income ÷ average of assets
= $184,000 ÷ $2,070,000
= 0.089
= 8.89%
Answer:
1
Db Salaries expenses__4000
Cr Accrued salaries__________4000
Accrued on December 31
Explanation:
Accrued salaries refers to the amount of liability remaining at the end of a reporting period for salaries that have been earned by employees but not yet paid to them.
Weekly payroll 5000
Day payroll 1000
Monday-Thursday 4000
1
Db Salaries expenses__4000
Cr Accrued salaries__________4000
Accrued on December 31
Answer:
$17,167
Explanation:
<em>The first step is to calculate amount of cash that would be charged</em>
<em>For 30 months, pay $520 per month for 30 months and an additional $10,000 at the end of 30 months.</em>
Present value is = 2,221
<em>Then</em>
<em>The present value of the payment options is =</em>
<em>($520 * PVA (24% 12,30) + $10,000 PV ( 24% 12,30))</em>
<em>$520 * 22.396 + $10,000 * 0.5521</em>
<em>$11646 + $ 5521</em>
<em>$17,167</em>
<em>Therefore the amount of cash the car dealer would charge is $17,167</em>
