Answer:
General Journal
Accounts Titles and Explanation Debit Credit
Office supplies $295
Advertising expense $120
Transportation expense $75
<em>Cash short and over $11 </em>
Cash ($800 - $299) $501
(Being replenishment of fund recorded)
Answer: 52.51 rupees/dollar
Explanation:
The real exchange rate attempts to account inflation in the countries being compared by using prices in the exchange rate.
The formula for calculating it is;
Real exchange rate = Nominal exchange rate *(Price index of domestic country/Price index of foreign country)
Real exchange rate in 2014 = 57*(99.5/108)
= 52.51 rupees/dollar
Answer:
we expect to experience both efficiency and effectiveness when interacting with organizations
Answer:
a. 6.7%
b. 12.0%
Explanation:
a. DDM
Dividende Discount Method is used to calculate the price of the stock using Dividend, rate of return and growth rate.
Return on equity = [ Dividend x ( 1 + growth rate ) / Price of stock ] + Growth Rate
Return on equity = [ $0.5 x ( 1 + 6% ) / $76 ] + 6%
Return on equity = [ $0.5 x ( 1.06 ) / $76 ] + 0.06
Return on equity = 6.7%
b. SML
Security Market line method uses calculates the cost of capital using following formula
Re = R
f + β ( Rm − R
f )
Rf = Risk free rate
β = stock beta
Rm = Market rate
Re =Expected rate
Re = 5.9% + 1.20 ( 11% - 5.9% )
Re = 12.02%
