Answer:
B
Explanation:
Here, in this question, we are asked to determine the decrease in notes payable that peachtree should record in the first year.
To determine this, we proceed as follows;
Interest payment for the first year = 30000*7% i.e 2100
Principal amount paid = Total amount paid - Interest amount
= 7317 -2100 i.e 5217
Notes payable should be reduced by 5217
Answer:
d.$7,091 increase
Explanation:
From the accounting equation, assets = liabilities + equity. If the total liabilities decrease by $27,275, the assets will also decrease by $27,275. Similarly, when stockholders' equity increased by $34,366, the amount of assets will increase by the same amount. The net increase in assets will be $7,091, which is the difference between the increase in stockholders' equity and the decrease in liabilities ($34,366 - $27,275).
Answer:
6.5%
Explanation:
Data given in the question
Beta of the stock = 0.9
Expected return = 9%
A risk-free asset = 4%
By considering the above information, the expected return on a portfolio is
= Risk - free asset × equally basis + expected rate of return × equally basis
= 4% × 50% + 9% × 50%
= 2% + 4.5%
= 6.5%
Since we have to find out the expected return on equally invested so we considered the risk free asset and the expected rate of return
Therefore we ignored the beta of the stock
The surplus to be determined in this problem is equal to the difference between the money willing to be paid and the value of the purchase. hence for Bob, surplus value is equal to 65- 45 or $20 while that of Bill is equal to 50-45 or $5. The total surplus for both boys is equal to $20 + $5 or $25.
