Answer:
The correct answer is letter "B": Expected return.
Explanation:
Expected return is the return an investor expects from an investment given the investment's historical return or probable rates of return under different scenarios. To determine expected returns based on historical data, an investor simply calculates an average of the investment's historical return percentages and then, uses that average as the expected return for the next investment period.
In the example, the expected return would be:
<em>Expected return </em><em>= (return in a good economy + return in a poor economy)/2</em>
<em>Expected return </em><em>= (13% + 4%)/2</em>
<em>Expected return </em><em>= </em><em>8,5%</em>
Answer: $600F
Explanation:
Given the following :
standard unit price - $1.80
actual purchase price per unit - $1.65
actual quantity purchased - 4,000
units actual quantity used - 3,900
units standard quantity allowed for actual production - 3,800 units
Material purchase price variance = ( Actual unit price of material - standard unit price of material) × Actual unit of material purchased
($1.65 - $1.80) × 4000
( $0.15) × 4000
$600F (Favorable) because standard price is higher than actual price
Answer:
Dec. 31
Dr Interest expense $405,000
Cr Discount on bonds payable $5,000
Cr Cash $400,000
Explanation:
Preparation of the journal entry to record interest expense and bond premium amortization on December 31, 2022
Dec. 31
Dr Interest expense $405,000
($400,000+$5,000)
Cr Discount on bonds payable $5,000
[$5,000,000 - ($5,000,000 x 101/100)/10]
Cr Cash ($5,000,000 x 8%) $400,000
(To record interest expense and bond premium amortization)
Answer:
D
Explanation:
Encoding the message
Encoding p is the act of converting the idea into words pictures or gestures that will convey meaning. It consists in changing the information into some form of logical and coded message.
The encoding process is all about the purpose of communication and the relation between the sender and the receiver. In a formal situation, encoding involves:
Making sure a language is selected, selecting a medium of communication; and selecting an appropriate communication form
Answer:
We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.
0.18*0.7=0.126= 12.6%
We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.
(1-0.7)= 0.3 which is the dividend payout ratio
Dividend= Dividend payout ratio *EPS
0.3*6=1.8
This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.
Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.
The formula for DDM is D*(1+G)/(R-G)
D= 1.8
G= 0.126
R=0.14
1.8*(1+G)/0.14-0.126
=144.77
Discount it to find the present value
144.77/1.14
=128.5
The intrinsic value of the stock should be 128.5
Explanation:
