Answer:
Risk tolerance is the degree of variability in investment returns that an investor is willing to withstand in their financial planning. Risk tolerance is an important component in investing.
Answer:
The correct option is a. $61.25.
Explanation:
Note: The correct cost function of the farmer is as follows:
C(Q) = 0.05Q^2 ……………….. (1)
Differentiating equation
MC = C’(Q) = 0.1Q
P = Expected price = (25% * $3) + (50% * $3.50) + (25% * $4) = $3.50 ……. (2)
Since profit is maximized when MC = P, we equate equations (1) and solve for Q which is the expected profit-maximizing quantity as follows:
0.1Q = 3.50
Q = 3.50 / 0.1 = 35
Substituting Q = 35 into equation (1), we have:
C(Q) = 0.05 * 35^2 = $61.25
R(Q) = Maximum expected revenue = P * Q = $3.50 * 350 = $122.50
The farmer's maximum expected profit = R(Q) - C(Q) = $122.50 - $61.25 = $61.25
Therefore, the correct option is a. $61.25.
Stock Market. It refers to the exchange and collection of equities, bonds, and other securities. This can be made possible through the formal exchange or over the counter markets, it also provides the company an access to its capital in trade for a portion of ownership to the investors.
Answer:
$85,000
Explanation:
Given that,
Shares sold = 50,000 shares of $3 par common stock for $5
Buys back = 10% of its common shares outstanding for $7 per share
Total equity on December 31 = $300,000
Balance in stockholder's equity without retained earnings:
= Beginning balance in stockholder's equity + Increase in stockholder's equity - Decrease in stockholder's equity
= $0 + (50,000 × $5) - (50,000 × 10% × $7)
= $250,000 - $35,000
= $215,000
Retained earnings on December 31:
= Total equity at December 31 - Balance in stockholder's equity without retained earnings
= $300,000 - $215,000
= $85,000
Answer:
See explanation section.
Explanation:
December 31, Interest receivable Debit $198
Interest revenue Credit $198
Interest revenue = ($7,920 × 10% ÷ 12) × 3 = $198
<em>To record the adjusting entry for interest revenue.</em>
February 1, Cash Debit = $8,184
Note receivable Credit = $7,920
Interest revenue Credit = $66
Interest receivable Credit = $198
Calculation: Interest revenue = ($7,920 × 10% ÷ 12) × 4 = $264 - $198 = $66
<em>To record the cash received from note receivable with interest.</em>
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