Answer:
The Journal Entry is shown below in the explanation section
Explanation:
The first step to take is to make use of the Journal entry.
Journal Entries for issuing Bonds
1 May Cash 800,000
Bonds Payable 800,000
1 Nov Interest expense 24,000
Cash 24,000
(800,000* 6%*6/12)
31 Dec Interest expense 8000
Interest Payable 8000
(800,000* 6%* 2/12)
We have to calculate profits for each number of workers:
1 worker: total revenue : $42; profit: 42 - 11 = $31
2 workers: t. r. ($10 + $14) = $ 24 * 3 = $72; profit: 72 - 22 = $50
3 workers: t. r. $90, profit: 90 - 33 = $57
4 workers: t. r. $105; profit : 105 - 44 = $61
5 workers: t. r. $117; profit: 117 - 55 = $62
6 workers: t. r. $126, profit: 126 - 66 = $60
7 workers: t. r. $132, profit: 132 - 77 = $55
Answer: Manfred will hire 5 workers to maximize the profit.
Answer:
Explanation:
Return on common stockholders' equity for 2015:
(Net income - preferred stock)/Equity
(63,000-5,400)/2,400,000 = 57,600/2,400,000 = 2.4%
Return on common stockholders' equity for 2015:
(99,000-5,400)/3,000,000 = 93,600/3,000,000 = 3.12%
From these calculations, it is clear that return has improved.
Answer:
The securities should a risk-averse investor purchase if the investment will be held in isolation is A because It has the lowest coefficient of variation.
Explanation:
We use the co-efficient of variation to calculate the risk level of the given stocks. The coefficient of variation is the measurement of risk of return.
A B C D E
Expected Returns 7% 10% 12% 25% 18%
Standard Deviation 2% 18% 15% 23% 15%
Use Following Formula to Calculate coefficient of variation.
Coefficient of variation = ( Volatility / Expected Return ) x 100
As Standard Deviation represent the volatility.
Coefficient of variation = ( Standard Deviation / Expected Return ) x 100
A. Coefficient of variation = ( 2% / 7%) x 100 = 28.57%
B. Coefficient of variation = ( 18% / 10%) x 100 = 180%
C. Coefficient of variation = ( 15% / 12%) x 100 = 125%
D. Coefficient of variation = ( 23% / 25%) x 100 = 92%
E. Coefficient of variation = ( 15% / 18%) x 100 = 83.33%