Answer:
Required rate of return= 14.8
If the security is expected to return 15%, it is underpriced.
Explanation:
The required rate of return on the security can be calculated using the CAPM formula which states that
Required rate of return =rf + B(rm - rf)
where rf= risk free rate
B= beta of the security
rm = return on the market
Required rate of return = 
= 14.68%
If the security is expected to return 15%, it is underpriced, and is a good investment. Discounting the expected cash-flows from the security at this higher expected return of 15% is going to yield a lower price compared to what the investor is prepared to pay given his required rate of return of 14.68%.
A change from straight-line depreciation to double-declining-balance depreciation would be reported as a restatement of the prior period statements only.
The term depreciation refers to an accounting technique used to spread the cost of a tangible or physical asset over its useful life. Depreciation indicates how much of an asset's value has been used. It allows companies to generate income from the assets they own by making payments over a period of time.
Depreciation expense is apportioned to charge a reasonable portion of the depreciation amount for each accounting period over the expected useful life of the asset. Depreciation includes the depreciation of assets with a predetermined useful life.
Learn more about depreciation here:brainly.com/question/1203926
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Answer:<em> Option (E) is correct.</em>
From the given option, the following will reduce Bankston's need to issue new common stock: <em>Increase the percentage of debt in the target capital structure.</em>
With an increase in percentage of debt , there will be a proportional increase in cost of equity and thereby decreasing investment in equity. This will therefore reduce Bankston's need to issue new common stock
Answer:
c
Explanation:
usually when ppl have to reserve things it's usually booked
Answer:
Prepare journal entries for the transactions noted above.
