Answer:
The journal entry is as follows:
Cash A/c Dr. $ 25,437.50
To Notes Receivable A/c $25,000
To Interest revenue A/c $437.50
(To record the collection of the note and interest at maturity)
Working notes:
Interest for 90 Days:
= Note value × Interest rate × Time period
= $25,000 × 0.07 × (90/360) days
= $437.50
Answer:
The risk free rate is 3.325%
Explanation:
The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
- (rM - rRF) gives us the risk premium of market
We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,
Let rRF be x.
0.1185 = x + 1.24 * (0.102 - x)
0.1185 = x + 0.12648 - 1.24x
1.24x - x = 0.12648 - 0.1185
0.24x = 0.00798
x = 0.00798/0.24
x = 0.03325 or 3.325%
Direct material cost variance = (Standard price - Actual Price) * Actual Quantity
= ($50 - $51) * 47,000
= $47,000 adverse
Answer:
B) underestimated the competition.
Explanation:
Maya is trying to pursue a dream of having her own bakery in a vibrant seaside resort town and thought that by using her grandmother's recipes, her business would be a success. But in order for a business to be successful, it takes more than just a great product (or great cookies, muffins, etc.).
The first thing you need to do is analyze the external environment and what other products are offered by your competition. That way you will be able to determine the opportunities or threats to you new venture. E.g. since the town hosts several upscale and expensive resorts, the clients are wealthy and that market attracts good chefs. I'm not sure if they hand out Michelin stars to bakeries, but if you have very good products offered by your competition, then you must work twice as hard.
Answer:
a, motivational
b, emotional
c, Rational
Explanation:
Employees engagement is level to which an employee has passion for his/her job (motivation), commitment to the firm (emotion) as well as his/her rational input in his/her efforts (rationality or use of discretion).
Employee engagement could be mistaken for employee satisfaction but they are not related.