Answer:
-3.41%
Explanation:
The computation of the annual rate of return is shown below;
We use the formula:
Future value = Present value × (1 + rate of interest)^number of years
$10,710,500 = $12,738,500 × (1 + rate of interest)^5
($10,710,500 ÷ $12,738,500)^(1 ÷ 5) = (1 + rate of interest)
(1 + rate of interest) = 0.965913622
r = (0.965913622 - 1) × 100
= -3.41%
The investment type that typically carries the least risk is saving account
Answer and Explanation:
B. workers, managers, and entrepreneurs could not personally gain by responding to shortages or surpluses or by introducing new and improved products.
Answer:
c. Work in Process--Department 2 375,000 Work in Process--Department 1 375,000
Explanation:
The journal entry is shown below:
Work in Process - Department 2 $375,000 ($100,000 + $125,000 + $150,000)
To Work in Proces - Department 1 $375,000
(Being the flow of cost from Dept 1 to Dept 2 is recorded)
Here the work in process for dept 2 is debited as it increased the assets and credited the work in process for dept 2 as it decreased the assets
Answer:
The required rate of return is 12.2%
Explanation:
Dividend growth model is used to calculate the price of the stock based on the dividend, its growth and required rate of return.
Formula to calculate the price
Price = Dividend / ( Required rate of return - Growth rate )
P = D / ( r - g)
P = $11.54
D = $0.95
g = 4%
Now placing the given values in the formula
$11.54 = $0.95 / ( r - 4% )
r - 4% = $0.95 / $11.54
r - 4% = 8.2%
r = 8.2% + 4%
r = 12.2%
