Answer:
3.6%
Explanation:
The computation of the alpha for the informed investors is shown below:
As we know that
Expected rate of k = Risk free rate of return + Beta × (Market rate of return - Risk free rate of return) + Alpha
16% = 4% + 1.4 × (10% - 4%) + Alpha
16% = 4% + 8.4% + Alpha
16% = 12.4% + Alpha
So,
Alpha = 3.6%
We simply applied the above formula to determine the alpha
Answer:
The correct answer is letter "B": Accounting centralizes and organizes processes.
Explanation:
Managerial Accounting is internally-based accounting that helps managers measure the results of their decisions. This is in contrast to financial accounting which emphasizes in more general, higher-level financial results of the company.
One common managerial accounting tool in determining the profit margin in each of the company's products. This information helps managers set product prices and ensure they are making appropriate profit margins.
Answer:
Kenny Co.
Cost per equivalent units:
Materials Conversion
Costs: $55,800 $55,824
Equivalent units 15,600 12,950
Cost per equivalent:
Materials:
$55,800/15,600 = $3.58 $4.31 ($55,824/12,950)
Cost per equivalent unit for Conversion = $4.31
Explanation:
a) Data and Calculations:
Equivalent units:
Materials 15,600
Conversion 12,950
Beginning WIP:
Materials $9,500
Conversion $4,450
April costs:
Materials = $55,800
Conversion $55,824
Ending WIP:
Materials = 5,300 (100% complete)
Conversion = 2,650 (50% complete)
Focus group is a small group consisting of members of the company's target market who convene in order to share their opinions about a new product concept. Using survey instruments the market research department obtains information from consumers and adjust their product and marketing plan.
Answer:
Initial investment = $36,092
Explanation:
This question requires the calculation of the year 0 cash-flow using the given information. Please note, in the calculation of Net Present Value, if the cash-flows from year 1 to year n are not the same, then we use the Present value factors as the stream of cash-flows is not an annuity.
year Cashflow PV factor of $1 at 12% PV (cashflow*PVF)
0 -?????? 1.000 -????
1 12,000 0.893 10,714
2 10,000 0.797 7,972
3 9,000 0.712 <u> 6,406 </u>
Net Present Value (11,000)
The year 0 figure is thus equal to 
Therefore the initial investment was $36,092, which was a cash-outflow at year 0.
