Answer:
a.
Explanation:
Correct option is > a. If the marginal investor becomes more risk averse, the required return on Stock B will increase by more than the required return on Stock A.
Reason: Required rate Stock B will increase so that to attract new investors for stock B and make returns more rational against associated risk.
Answer:
(Dr.) Utilities Expense - 21,000
(Dr.) Rent Expense - Factory Equipment - 16,000
(Dr.) Miscellaneous Expenses - 3,000
(Cr.) Cash - 40,000
Explanation:
Just simply record all expenses paid by recording it at the debit side.
The utilities expenses amounting to 21,000, for the rent expense amounting to 16,000 and for the miscellaneous expenses amounting to 3,000 will be posted.
Then record the total cash paid of 40,000 at the credit side.