Answer:
See below
Explanation:
10000-1000=9000 to be depreciated
9000/5=1800 annual depreciation
journal entry:
depreciation expense. 1800 (debit)
Accumulated depreciation. 1800 (credit)
to record annual depreciation
Answer:
c) Unearned Revenue $ 500, Revenue $ 500
Explanation:
When the cash was received on August 01, no accounting services were provided so the entry would have been:
Cash Debit $ 1,200
Unearned revenue Credit $ 1,200
Unearned Revenue is a liability account
On December 31, a recognition needs to be made for the services revenue earned and hence the amount for 5 months amounting is debited to unearned revenue and revenue credited with $ 500.
Answer:
$13.34
Explanation:
For computing the today price, first we have to determine the present value of equity which is shown below:
The Present value of equity = Spending amount on dividends and repurchases ÷ equity cost of capital
= $9.4 million ÷ 13.3%
= $70,676,691
Now the share price equals to
= Present value of equity ÷ outstanding shares
= $70,676,691 ÷ 5.3 million shares
= $13.34
Answer:
Following are the response to the given question:
Explanation:
For question 1:
The weighted average of each return is the expected return.
![Expected\ return = 0.1 \times -0.22 + 0.2 \times -0.12 + 0.3 \times 0.17 + 0.2 \times 0.33 + 0.2 \times 0.56 \\\\](https://tex.z-dn.net/?f=Expected%5C%20return%20%3D%200.1%20%5Ctimes%20-0.22%20%2B%200.2%20%5Ctimes%20-0.12%20%2B%200.3%20%5Ctimes%20%200.17%20%2B%200.2%20%5Ctimes%20%200.33%20%2B%200.2%20%5Ctimes%20%200.56%20%5C%5C%5C%5C)
![= 0.1830 \\\\= 18.30\%](https://tex.z-dn.net/?f=%3D%200.1830%20%5C%5C%5C%5C%3D%2018.30%5C%25)
For question 2:
Standard deviation is a measured source of the square deviations from the mean via probability.
![Std \ dev = [0.1 \times (0.183-(-0.22))^2 + 0.2 \times (0.183-(-0.12))^2 + 0.3\times(0.183-0.17)^2 + 0.2\times (0.183-0.33)^2 + 0.2\times (0.183-0.56)^2]^{(\frac{1}{2})}\\\\](https://tex.z-dn.net/?f=Std%20%5C%20dev%20%3D%20%5B0.1%20%5Ctimes%20%280.183-%28-0.22%29%29%5E2%20%2B%200.2%20%5Ctimes%20%280.183-%28-0.12%29%29%5E2%20%2B%200.3%5Ctimes%280.183-0.17%29%5E2%20%2B%200.2%5Ctimes%20%280.183-0.33%29%5E2%20%2B%200.2%5Ctimes%20%280.183-0.56%29%5E2%5D%5E%7B%28%5Cfrac%7B1%7D%7B2%7D%29%7D%5C%5C%5C%5C)
![= 0.2596 \\\\= 25.96\%](https://tex.z-dn.net/?f=%3D%200.2596%20%5C%5C%5C%5C%3D%2025.96%5C%25)
For question 3:
For point a:
![\text{Coefficient of variation} = \frac{std \ dev}{expected\ return} \\\\](https://tex.z-dn.net/?f=%5Ctext%7BCoefficient%20of%20variation%7D%20%3D%20%5Cfrac%7Bstd%20%5C%20dev%7D%7Bexpected%5C%20return%7D%20%5C%5C%5C%5C)
![=\frac{0.2596}{0.183} \\\\= 1.42](https://tex.z-dn.net/?f=%3D%5Cfrac%7B0.2596%7D%7B0.183%7D%20%5C%5C%5C%5C%3D%201.42)
For point b:
As per the CAPM:
In Option I:
When the beta of the stock exceeds 1.0, the change in the required rate of return must be higher than the increase in the premium of market risk. Beta is the degree to which stock return changes as market returns change.
![\text{Required return = risk free rate + beta}\times \text{market risk premium}](https://tex.z-dn.net/?f=%5Ctext%7BRequired%20return%20%3D%20risk%20free%20rate%20%2B%20beta%7D%5Ctimes%20%5Ctext%7Bmarket%20risk%20premium%7D)
Answer:
The options are given below:
a) punctuation
b) interpretation
c) perceptuation
d) conjugation
e) intrepidation
The correct option is A. Punctuation.
Explanation:
To punctuate a communication refers to the interpretation of an ongoing sequence of events by determining that one event is the cause and the resulting event is the response. In a situation with communication, if one thing happens, something else always happens.
In the scenario above, both Shannon and Roger are exemplifying the theory of punctuation, because they each think that their actions are as a result of the actions of the other person.