Given:
average inflation rate: 2.7%
average t-bill rate: 5.4%
returns
17%
- 4%
20%
12%
10%
Average returns = (17% - 4% + 20% + 12% + 10%) / 5 = 11%
Average real risk-free rate using the Fisher equation.
The average real risk-free rate was: (1 +R) = (1 +r)(1 +h)
f = <span>(1.054/1.027) – 1
f = 1.0263 - 1
f = 0.0263 or 2.63%</span>
The average real risk-free rate over this time period is 2.63%
Answer:
I have no clue tbh lol they think they are the boss of us
Answer:
See answer below
Explanation:
Journal entry will be as follows.
Debit Cash Account $60,000
Credit Payables/Service Prepayment Account $60,000.
As service is being rendered on a monthly basis (monthly income = 
), the company will make the following journal entry.
Debit Payables/Service Prepayment Account $10,000
Credit Revenue $10,000.
Answer:
the answer is false
Explanation:
it's tedious to copy everything a speaker says. you should paraphrase in your notes, and get the most important points.
Answer:
b. False
Explanation:
The difference between absorption costing net operating income and variable costing net operating income lies in the <em>fixed costs deferred in closing inventory</em>.
If Production is greater than Sales - <u>Increase in Finished Goods Inventory</u>, Absorption costing net operating income will typically be greater than Variable costing net operating income.
However, If Production is less than Sales - <u>Decrease in Finished Goods Inventory</u>, Absorption costing net operating income will typically be less than Variable costing net operating income.
