Answer: 13.1%
Explanation:
Using the Capital Asset Pricing Model, the expected return is;
Expected Return = Risk Free rate + beta(expected return - risk free rate)
= 4% + 1.3( 11% - 4%)
= 4% + 9.1%
Expected Return = 13.1%
Answer:
See below
Explanation:
Assembled product
Cost = $24 + $20 = $44
Selling price = $69
Profit = $69 - $44 = $25
Unassembled product
Cost = $24
Selling price = $56
Profit = $56 - $24 = $32
Therefore, Swifty corporation should sell before assembly, the company will be better off by $7
Answer:
(1) $2,720
(2) $2,220
Explanation:
Given the following sequence:
300 units at $6, 400 units at $7 and 200 units at $8
(1) FIFO method
Ending inventory = 360 units
Cost of ending Inventory:
= 200 units at $8 + 160 units at $7
= 200 × $8 + 160 × $7
= 1,600 + 1,120
= $2,720
(2) LIFO method
Cost of ending Inventory:
= 300 units at $6 + 60 units at $7
= 300 × $6 + 60 × $7
= 1,800 + 420
= $2,220
Answer:
Trade-off means that if we want to buy an economic good (anything that has monetary value) then we will demand an economic good (anything that has a monetary value). So this means if I want to buy chocolates then I will have to pay the shopkeeper money. Anything that you buy has a monetary value and we have to compensate seller for that. That's trade-off.
Suppose a situation that you have an opportunity to see bill gates in a show whose ticket has cost you $500 and if you have decided that you have to go somewhere else due to emergency then the loss will be $500 and meeting bill gates live. However his advice to young generation can be seen on social networks but what you lost is cost of seeing bill gates which you paid $500 and not attending the show to meet him.
My parents offered me chocolates to do homework because I was not interested in studies. My father used to read books in front of me to imitate me to read books and develop book reading habits.
