ACTION STEPS (What will be done) Step 1 Plann Step 2 4 Step 3 rll 의 Step 4 Step 5 Pa complete (5)

The stock in Bowie Enterprises has a beta of 1.14. The expected return on the market is 12.20 percent and the risk-free rate is

viktelen [127]

Answer:

Required return on stock = 13.44%

Explanation:

We know,

The required return on the company's stock = Risk-free rate of return + (Expected return on the market - Risk-free rate of return) x beta

= $R_{f}$ + ( $R_{m} - R_{f}$ ) x b

Given,

Beta, β = 1.14;

Risk-free return, $R_{f}$ = 3.33%

Return on the market, $R_{m}$ = 12.20%

Putting the numbers on the formula, we can get,

The required return on the company's stock = 3.33% + (12.20% - 3.33%) x 1.14

required return on stock = 3.33% + 10.1118%

required return on stock = 13.44% (Rounded to two decimal places)

8 0

4 years ago

The Miller Company earned $103,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivabl

alekssr [168]

Answer:

The net realizable value of Miller's receivables at the end of Year 2 was $27,910

Explanation:

Let's start with the definition of each concept:

Sales on account: These represent sales which are not paid right away.

Account receivable: This is an account which represent the sales on account which currently are still unpaid.

When a sale is payed at the very moment it ocours, it is done using the cash account and the sales accounts.

Allowance for doubful account: This account is a counter-assets account that decrease the net value of account receivable. It represent the account that will not be collected.

The method to determinate the allowance will be the following:

Sales on account x estimate uncollectiblle = Bad debt expense

$103,000 x 3% of sales = 3090 bad debt expense

The journal entry to record this will be:

bad debt expense debit 3090

allowance for doubful account credit 3090

The company collected 72,000 of the sales on account during the year so the balance will be:

103,000 - 72,000 = 31,000 account receivable

So resuming the account receivable account have this movements:

account receivable debit for 103,000

sales revenue credit for 103,000

to show the sales on account

and then

cash debit for 72,000

account receivable credit for 72,000

to show the collections of the customer accounts

Now subtracting the espected bad debt we get the Miller's net realizable value at the end of Year 2:

31,000 - 3,090 = 27,910

Account receivable 31,000

Allowance for doubful accounts (3,090)

net 27,910

Have a nice evening !

3 0

4 years ago

Kent Manufacturing produces a product that sells for $70.00. Fixed costs are $163,200 and variable costs are $28.00 per unit. Ke

kipiarov [429]

Answer:

$330,846

Explanation:

The computation of the the revised break even point in dollars is shown below:

= (Fixed cost ) ÷ (Profit volume ratio)

where,

Fixed cost = $163,200 + $8,840

= $ 172,040

And the profit volume ratio would be

= (Contribution margin) ÷ (Sales) × 100

where Contribution margin equal to

= Selling price per unit - variable cost per unit

= $70 - $28 + $5.60

= $36.4

So, the profit volume ratio is

= ($36.40) ÷ ($70)

= 52%

So, the revised break point in dollars is

= ($172,040) ÷ (52%)

= $330,846

4 0

3 years ago

In order to determine whether or not a single-replacement reaction will take place, we need to look at the

Alekssandra [29.7K]

Activity series of metals

3 0

3 years ago

According to the Smith, Ricardo, and Heckscher-Ohlin theories, a country's economy may gain if its citizens buy some products fr

vredina [299]

Answer: b. International trade allows a country to specialize in items that can be produced most efficiently in that country.

Explanation:

Adam Smith with his Absolute Advantage theory, David Ricardo and his Comparative Advantage theory and the Heckscher-Ohlin theories believed that goods should be purchased from Countries that are more efficient in producing said goods so that the resources in the buying country can be channelled towards producing the good that the country can produce efficiently as well.

They believe this to be the foundation of global trade and that each country stands to gain if they buy the goods they are less efficient at producing and sell the goods that they are more efficient at producing. This way resources are properly channelled in an Economy and both countries involved in the trade can achieve high Economic growth as they are utilising their resources efficiently.

6 0

3 years ago

ACTION STEPS (What will be done) Step 1 Plann Step 2 4 Step 3 rll 의 Step 4 Step 5 Pa complete (5)​

ACTION STEPS (What will be done) Step 1 Plann Step 2 4 Step 3 rll 의 Step 4 Step 5 Pa complete (5)