Answer:
b. 3.70 percent
Explanation:
Expected rate of return of a stock, given probabilities, is calculated by summing up the product of probability of each state occurring by the expected return of the stock should that happen.
Expected rate of return = SUM (probability *return)
Boom;(probability* return) = (0.15* 0.10) = 0.015 or 1.5%
Normal ;(probability* return) = (0.70* 0.04) = 0.028 or 2.8%
Recession ; (probability* return) = (0.15* -0.04) = -0.006 or -0.6%
Next, sum up the expected return for each state of the economy to find the expected rate of return on this stock;
= 1.5% + 2.8% -0.6%
= 3.7%
Therefore, the correct answer is choice B.
Answer:
Solution attached in picture
Explanation:
Groups of related business activities such as the acquisition of merchandise and payment of vendors are called transaction cycles.
A transaction cycle is an interlocking set of business transactions. Most of those transactions may be aggregated into a comparatively small number of transaction cycles associated with the sale of products, payments to suppliers, payments to employees, and payments to lenders.
A transaction cycle is a set of accounting transaction that happens in a very normal sequence as an example a sales transaction is followed by shipping transaction, a billing transaction, and a cash receipts transaction.
Therefore, there are four transaction cycles which are the following:- Financial cycle, expenditure cycle, revenue cycle, conversion cycle.
To know more about transaction cycle here
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Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
Total cost = $8,600
Total units = 400 Units
Direct labor hour per unit = 5
Variable cost = $1.50
So, we can calculate the fixed cost by using following formula:
Fixed cost = Total cost - Total Direct labor cost
Where, Total direct labor cost = $1.50 × 5 × 400 = $3,000
By putting the value in the formula, we get
Fixed cost = $8,600 - $3,000
= $5,600
