Answer:
Be included as a component of income from continuing operations for 20X9
Explanation:
To find out the correct balance of income from continuing operations, we have to add the loss as the loss is added in the income from continuing operations.
Moreover, in this question the golden rule of accounting applies which says:
Debit all losses and expenses and credit all income and gains which apply in the nominal account that record any type of transactions. example - sales account, purchase account, etc.
Answer: disciplinary action.
Answer:
a) Breakeven price = Purchase price + Interest amount that would have been earned on the invested amount
Breakeven price = 23 + [23*e^(0.05*1/2) - 23]
Breakeven price = 23 + 0.5822477721
Breakeven price = $23.5822477721
b) Profit = Selling price - Breakeven price
Profit = $23.80 - $23.5822477721
Profit = $0.2177522279 per share
- The expected return = = 12.84 %.
-
The standard deviation = 22.8 %.
<u>Explanation</u>:
On the client's portfolio (total investment = 120 K + 80 K = 200 K,
= (12.4 %risk premium + 5.4 %risk free return) 
(120 K / 200 K) + 5.4 % (80 K / 200 K)
= 17.8 % 0.6 + 5.4 % 0.4
= 12.84 %.
-
The standard deviation would be = 38 % 0.6 + 0% 0.4
= 22.8 %.
