Answer:
The balance of total assets, total liabilities, and total stockholders' equity is $640,000, $440,000 and $200,000 respectively.
Explanation:
The computation of the balance of total assets, total liabilities, and total stockholders' equity after considering the lease payment is shown below:
For Total assets
= Total assets balance + present value of lease payments
= $600,000 + $40,000
= $640,000
For Total liabilities
= Total liabilities balance + present value of lease payments
= $400,000 + $40,000
= $440,000
And, the total stockholders' equity is $200,000
While computing the stockholder equity, the lease payment does not have an impact on the stockholder equity so the balance would remain the same as before
Answer:
The answer is: C) decreases ; increases
Explanation:
The real cost of borrowing is calculated by adjusting the nominal cost of borrowing by the inflation rate. This means that if the inflation rate increases, then the adjusted real cost of borrowing will decrease.
The inflation rate increases when country´s money supply growth rate outpaces its economic growth. So when the inflation rate increases (lowering the real cost of borrowing), borrowers are more likely to issue bonds, increasing the bond supply.
Answer:
Subcultural
Explanation:
Consumer behaviour refers to how individuals make decisions on ways to spend their available resources, time, money, and effort on variety of items.
A society is composed of several sub-cultures in which iindividuals can identify themselves. A Subculture is a group of people within a culture who are different from the dominant culture but have something in common with one another such as common interests, religions, ethnic backgrounds.
Culture is considered an external factor that influences consumer behavior. Since different cultures have different values, they will have different buying habits. A typical example is the Jewish people that purchase about 63% of bagels that is sold in New York City.
The annualized holding period return for this investment is 13.17%.
<h3>Define annualized total return.</h3>
The fund's annual return is calculated using the annualized total return to show the rate of return required to generate a cumulative return. A holding period is the duration of time an investor keeps an investment in their portfolio or the interval between buying and selling a security.
The geometric average of yearly returns for each year during the investment period is known as the annualized return. When comparing two investments with different time periods or examining an investment's performance over time, the annualized return can be helpful.
Annualized Return =(Future value + Present value) ^ (1 / N) - 1
= [10,000/9,400]^12/6 - 1
= (1.0638298)²-1
= 1.1317 - 1
= 13.17%
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Answer:
C. Reject W
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) which is shown below:
Expected return = Risk-free rate of return + Beta × (Market rate - Risk-free rate of return)
= 7% + 1.6 × (12%-7%)
= 7% + 1.6 × 5%
= 7% + 8%
= 15%
The Project W should be rejected as it gives only 14% expected return which is less than the derived expected return.
