Answer:
1.
Required rate = risk free rate + beta (market rate – risk free rate)
.12 = 0.0525 + 1.25(X – 0.0525)
1.25X – 0.065625 = .12 – 0.0525
1.25X = 0.0675 + 0.065625
X = .1333125/1.25
= 0.1065
Marker risk premium = market rate – risk free rate
= .1065 – 0.0525
= 0.054 (A)
2.
Beta of portfolio = (5000000/5500000)* 1.25 + (500000/5500000)* 1
= 0.90909* 1.25 + 0.090909* 1
= 1.136 + 0.090909
= 1.2273
3.
Required rate = risk free rate + beta (market rate – risk free rate)
= 0.0525 + 1.2273* 0.054
= 0.0525 + 0.06627
= .11877 or 11.88%
Answer:
Given,
Annual demand, D = 12500,
Setting up cost, S = $ 49,
Production rate per year, P = production facility × capability of production = 300 × 105 = 31500,
Holding cost per year, H = $ 0.15,
Hence,
(i) Optimal size of the production run,
(ii) Average holding cost per year,
(iii) Average setup cost per year,
(iv) Total cost per year = average setup cost per year + average holding cost per year + cost to purchase 12500 lights
= 166.44 + 166.48 + 12500(0.95)
= $ 12207.92
Answer:
C. Your client can’t create an Adjusting Journal Entry.
Explanation:
In QuickBooks Online Accountant you (the accountant) make the adjusting journal entries, not your clients. It is like saying that you operate yourself while your doctor drinks coffee besides your bed.
the other options are wrong:
A. A Journal Entry cannot be used to account for depreciation of an asset. ⇒ FALSE, QuickBooks doesn't automatically depreciate an asset, the user must do this through journal entries.
B. The Accountant user can’t create an Adjusting Journal Entry in QuickBooks Online. ⇒ FALSE, when using QuickBooks Online Accountant you can create adjusting entries just like any other regular entry.
Answer: advertising, publicity, and personal selling- that stimulates interest, trail or purchase by final customers or others in the channel.
Explanation: Sales promotion are promotional activities used to stimulate consumers into purchasing a certain product. Sales promotion usually takes the form of giving discounted prices to customers, giving out extra incentive or gift items, freebies, voucher cards, coupon and other promotional offers which gives consumers extra material benefit when they purchase an item. Promotional offers are usually made during certain periods such as festive seasons, company anniversary or occasionally in other to drive sales or to wow customers.
Answer:
A. Liquidity management is a balancing act, managers try to find liquidity levels that are neither too high not too low.
Explanation:
Maintaining proper liquidity is an important financial objective of management. Proper liquidity management demands that an entity should be able to meet his short term financial obligation and making sure that liquid assets of the entity are not idle. In order to achieve this, the best way to go is to maintain a level that is neither too high and not too low. Not too high means the entity is not holding too much cash or liquid assets than it currently need to meet its short term financial obligation.
For example, not keeping too much cash in current account but investing them in interest-earning investment assets.
Not too low means the cash or liquid assets held by an entity should not less than the amount needed to meet its short term financial obligation. For example, making sure that the entity has enough cash or readily convertible liquid assets that can be used to pay vendors, rent, interest and meet other short term financial obligation.
Option B is false because keeping too much does not help to maximize short term earnings which is a feature of proper liquidity management. Option C is wrong because there is no guideline to support that deferring coupon payment won`t attract payment and this does not connote proper liquidity management.
Option D is obviously false and does not describe proper liquidity management.
