C. A Novation
In contract law, a novation is the cancellation of one contract and replacing it with another contract.
The two forces are:
1. Falling barriers to trade and investments: Many countries of the world now allow their countries to engage in trade with other countries, this has led to increase in globalization of markets and production.
2.Technological innovations: technology has made so many things possible in the business world today.The whole world has been linked up by internet and this makes it easier for a company to market its products to the whole world.
'The final step in recognizing the completion of production requires a company to debit Finished-Goods Inventory and credit Work-in-Process Inventory.
Production is the process of making or producing goods or products from raw materials or parts. In other words, production takes inputs and uses them to create outputs suitable for consumption, i.e. goods or products of value to the end-user or customer.
Production is the process of making, harvesting, or creating something, or the quantity of something manufactured or harvested. An example of production is the manufacture of furniture. An example of production is harvesting corn for food. An example of production is corn production.
The economist classifies the factors of production into his four categories: land, labor, capital and entrepreneurship. The first element of production is land, which includes all natural resources used to produce goods and services.
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Answer:
Option (B) 5.5%
Explanation:
Data provided in the question :
Factor Risk premium
Factor 1 5%
Factor 2 3%
Beta of stock A on factor 1 = 1.4
Beta of stock A on factor 2 = 0.5
Expected return = 14%
Now,
Expected return
= Risk free rate + (Beta of factor 1 × Risk premium of factor 1) + (Beta of factor 2 × Risk premium of factor 2)
or
14% = Risk free rate + (1.4 × 5%) + (0.5 × 3%)
or
14% = Risk free rate + ( 7% + 1.5% )
or
Risk free rate = 5.5%
Hence,
Option (B) 5.5%