What is the beta for a 2 stock portfolio with a 0.43 weight in Walmart stock and the remainder in Amazon

Answers

Answer 1

Answer: 0.82

Explanation:

From the given formulas, the beta of Walmart is 0.3616 and the beta of Amazon is 1.1634.

The portfolio beta is going to be a weighted average of these two betas:

= (0.43 * 0.3616) + ( (1 - 0.43) * 1.1634)

= 0.155488 + 0.663138

= 0.82


Related Questions

Edible Chemicals Corporation owns a $2 million whole life insurance policy on the life of its CEO, naming Edible Chemicals as beneficiary. The annual premiums are $72,000 and are payable at the beginning of each year. The cash surrender value of the policy was $22,000 at the beginning of 2018.
1. & 2. Prepare the appropriate 2018 journal entries to record insurance expense and the increase in the investment assuming the cash surrender value of the policy increased according to the contract to $28,200. The CEO died at the end of 2018.

Answers

Answer:

1. Dr Insurance expense $65,800

Dr Cash surrender value of life insurance $6,200

Cr Cash $72,000

2. Dr Cash $2000,000

Cr Cash surrender value of life insurance $28,200

Cr Gain on life insurance settlement $1,971,800

Explanation:

1. & 2. Preparation of the appropriate 2018 journal entries to record insurance expense and the increase in the investment

1. Dr Insurance expense $65,800

($72,000+$22,000-$28,200)

Dr Cash surrender value of life insurance $6,200

($72,000-$65,800)

Cr Cash $72,000

2. Dr Cash $2000,000

Cr Cash surrender value of life insurance $28,200

Cr Gain on life insurance settlement $1,971,800

($2000,000-$28,200)

Below is financial information for two sporting goods retailers. Extreme Sports Company operates a retail business and franchising business. At the end 2011, Extreme Sports had 263 Company-owned and 120 franchise-operated retail stores. Extreme's stores are located in suburban, strip mall and regional mall locations, the company operates in 32 states. All Sports Corporation sells sporting goods and related products at over 2,500 Company-operated retail stores.
Selected Data for All Sports and Extreme Sports (amounts in millions):
All Sports Extreme Sports
Sales $5,320 $1,344
Cost of Goods Sold 3,897 887
Interest Expense 138 43
Net Income 212 33
Average Accounts Receivable 114 18
Average Inventory 998 286
Average Fixed Assets 1,163 130
Average Total Assets 2,472 662
Average Tax Rate 40% 40%
Calculate the following ratios for All Sports and Extreme Sports: If required, round your answers to two decimal places.
Find the following for each: All Sports / Extreme Sports
a. Return on assets
b. Profit Margin for ROA
c. Assets turnover
d. Accounts receivable turnover
e. Inventory turnover
f. Fixed asset turnover

Answers

Answer:

All Sports Company and Extreme Sports Company

                                          All Sports                   Extreme Sports

a. Return on assets (ROA) = Profit margin * Assets turnover

=                                       3.98%*2.15                2.46%*2.03

=                                       8.56%                         4.99%

b. Profit Margin for ROA = Net income/Sales

=                                      ($212/5,320 * 100)     ($33/1,344 * 100)

=                                        3.98%                          2.46%

c. Assets turnover = Sales/Total assets

=                                       $5,320/$2,472          $1,344/$662

=                                       2.15                              2.03

d. Accounts receivable turnover = Credit Sales/Average receivable

=                                       $5,320/$114             $1,344/$18

=                                        46.67x                        74.67x

e. Inventory turnover = Cost of goods sold/Average Inventory

=                                       $3,897/$998            $887/$286

=                                       3.9x                            3.10x

f. Fixed asset turnover = Sales/Fixed assets

=                                       $5,320/$1,163         $1,344/$130

=                                       4.57x                        1.03x

Explanation:

a) Data and Calculations:

                                             All Sports     Extreme Sports

Sales                                        $5,320             $1,344

Cost of Goods Sold                   3,897                  887

Interest Expense                          138                     43

Net Income                                   212                    33

Average Accounts Receivable     114                     18

Average Inventory                      998                  286

Average Fixed Assets               1,163                   130

Average Total Assets              2,472                  662

Average Tax Rate                      40%                  40%

Suppose that Portugal and Germany both produce beer and stained glass. Portugal's opportunity cost of producing a pane of stained glass is 4 barrels of beer while Germany's opportunity cost of producing a pane of stained glass is 10 barrels of beer.
By comparing the opportunity cost of producing stained glass in the two countries, you can tell that ___ has a comparative advantage in the production of stained glass and ___ has a comparative advantage in the production of beer.
Suppose that Portugal and Germany consider trading stained glass and beer with each other. Portugal can gain from specialization and trade as long as it receives more than ___ of beer for each pane of stained glass it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than ___ of stained glass for each barrel of beer it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of beer) would allow both Germany and Portugal to gain from trade?
a. 8 barrels of beer per pane of stained glass.
b. 6 barrels of beer per pane of stained glass.
c. 2 barrels of beer per pane of stained glass.
d. 18 barrels of beer per pane of stained glass.

Answers

Answer:

umm I don't really understand the question

Explanation:

a

Private solutions to correct for externalities Consider the following scenario: Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted by the minerals in the waste matter. The local office of a nonprofit environmental organization collects enough donations to fund a campaign to stop the farm's pollution. Which of the following types of private solutions to the externality of pollution has occurred in this case?A. Integration of different types of businessesB. ContractsC. Moral codes and social sanctionsD. Charities

Answers

Answer:

D

Explanation:

The activities of the chicken firm constitutes a negative externality to the environment

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low

Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality. This is the solution employed here.

You have just made your first $4,400 contribution to your retirement account. Assume you earn a return of 13 percent per year and make no additional contributions. a. What will your account be worth when you retire in 29 years

Answers

Answer: $152,309.69

Explanation:

You are looking for the future value of this amount in 29 years assuming it will be compounded annually.

Future value = Amount * (1 + rate)^ number of years

= 4,400 * ( 1 + 13%)²⁹

= $152,309.69

The spread of ATMs and the increased use of debit cards​ _______ money. Everything else remaining the​ same, the nominal interest rate​ _______.

Answers

Answer:

increase the demand​ for; falls

Explanation:

ATMs means automated teller machine. They increase the ease through which a bank account holder can assess her funds. ATMs can be used to :

withdraw funds check account balancetransfer money

With the proliferation of ATMs and the increased use of debit cards​, there has been an increase in the demand for money. This has led to a fall in nominal interest rate

The demand for money (the decision to hold money) is inversely related to interest rate. If the demand for money increases, it means that less bonds are been held. As a result, there would be a fall in the interest rates.

Which of the following is a component of the talent acquisition function of HR management?
Group of answer choices

Recruiting

Training

Career planning

Orientation

Answers

Answer:

Recruiting

Explanation:

Recruitment is the process of hiring individuals in an organization to accomplish the tasks assigned. It is the process carried by the Human Resource Management in an organization. The HR management is responsible to organize and manage the human talents and recruit them respectively. The talent are recognized by the team and are hired to meet the goals of the organization.

Which of these is more likely to be true?
A. An adaptor is likely to consider radical innovations
B. An innovator is likely to consider incremental innovations
C. Large companies often find it easier to adopt radical innovations.
D. Innovators will often push for radical innovations.

Answers

Answer: D. Innovators will often push for radical innovations.

Explanation:

A radical innovation is one that when made, changes up the way things were being done in the industry that it appears in. For instance, when the first digital camera was made, it changed photography forever.

This is what innovators want. They want to come up with a product that would change the way things are being done and enable them to take over the market.

Hartford, Inc. manufactures a single product. Shown are projected revenues and costs based on last year's income statement (8,000 units) and practical capacity (10,000 units). The costs are either variable, fixed, or mixed (part variable and part fixed.) You need to figure out what the cost type is based on the cost behavior.Last Year(8,000 units) Practical Capacity(10,000 units) Total Per Unit Total Per UnitRevenue $800,000 $100.00 $1,000,000 $100.00Costs: Direct Material $200,000 $25.00 $250,000 $25.00Direct Labor $160,000 $20.00 $200,000 $20.00Mfg. Overhead $180,000 $22.50 $200,000 $20.00Selling Expenses $40,000 $5.00 $50,000 $5.00Admin. Expenses $50,000 $6.25 $50,000 $5.00Total Costs $630,000 $78.75 $750,000 $75.00Pre-Tax Profit $170,000 $250,000 RequiredAssume that Hartford expects to sell the same number of units as last year in their normal distribution channels (8,000 units). They have received an offer from a one-time customer (not part of their normal customer mix) to buy 1,000 units (additional to their expected normal sales) at a price of $71. By how many dollars would pre-tax profit increase or decrease if Hartford accepts the special order? (9 points)

Answers

Answer:

Hartford, Inc.

If Hartford accepts the special order, the pre-tax profit would increase by

= $21,000.

Explanation:

a) Data and Calculations:

Production and sales capacity last year = 8,000 units

Practical capacity = 10,000 units

                                         Last Year                Practical Capacity

                                      (8,000 units)                  (10,000 units)

                                Total         Per Unit           Total         Per Unit

Revenue                 $800,000  $100.00      $1,000,000  $100.00

Costs:

Direct Material       $200,000   $25.00        $250,000    $25.00

Direct Labor            $160,000   $20.00        $200,000    $20.00

Mfg. Overhead       $180,000   $22.50        $200,000    $20.00

Selling Expenses     $40,000     $5.00          $50,000       $5.00

Admin. Expenses    $50,000     $6.25          $50,000       $5.00

Total Costs            $630,000   $78.75        $750,000     $75.00

Pre-Tax Profit         $170,000                       $250,000

Variable cost per unit              $50.00                              $50.00

Fixed cost            $230,000                        $250,000

Sales revenue from the one-time customer = $71,000

Variable cost per unit                                         50,000

Additional pre-tax profit (increase)                  $21,000                    

On its balance sheet, Walgreen Co. reports treasury stock at cost of $4,114 million. The company has a total of 1,100,000,000 shares issued and 950,000,000 shares outstanding. What average price did Walgreen pay for treasury shares?
a. $3.15.b. $3.29.c. $3.03.d. $38.1.

Answers

Answer:

$2.74

Explanation:

Calculation to determine What average price did Walgreen pay for treasury shares

Price per share =total treasury shares at cost/treasury shares.

Price per share=$4,114 million / (1,100,000,000 – 950,000,000)

Price per share=$4,114 million/

= $2.74 per share.

When one uses the after-tax weighted average cost of capital (WACC) to value a levered firm, the interest tax shield is A) not accounted for by the use of the WACC. B) considered by deducting the interest payment from the cash flows. C) automatically considered because the after-tax cost of debt is included within the WACC formula. D) capitalized by the levered cost of equity.

Answers

Answer:  C) automatically considered because the after-tax cost of debt is included within the WACC formula.

Explanation:

When calculating the Weighted Average Cost of Capital (WACC) for a levered firm, the interest tax shield is included because the cost of debt used is adjusted for tax as shown below:

= (Weight of debt * Cost of debt( 1 - tax rate) ) + (Weight of equity * cost of equity)

As shown above, the interest tax shield is already implicit in the formula so there is no need to adjust the levered firm for an interest tax shield as this would lead to double-counting.

Risk assessment is an evaluation of the PPS supported by a number of analysis methodologies, including :__________.

Answers

Answer:

Threat analysis Consequence analysis Event and Fault tree analyses Vulnerability analysis

Explanation:

Threat Analysis

Involves the identification of areas of the system in question that are vulnerable to risk and then identifying what those risks are.

Consequence Analysis

With consequence analysis, the possible effects of the risks identified will be analyzed to see how much damage they can cause.

Event and Fault tree analyses

Here a tree is used to show all of the possible effects of a risky activity failing. It is used to find out the cause of the worst case scenario.

Vulnerability analysis

As the term implies, vulnerability analysis is done to see which parts of a system are at risk and how vulnerable they are to this risk and then ranking these vulnerabilities so that they can be prioritized.

A natural monopoly arises whenA. a single firm aggressively forces other competitors to exit and industry.B. a single firm has a monopoly over natural resources.C. two firms merge into a single firm in order to capture more of the market.D. a single firm can produce more cheaply than multiple firms due to a downward-sloping average total cost curve.

Answers

Answer:

D

Explanation:

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

A natural monopoly occurs due to the high start-up costs or a large economies of scale.

Natural monopolies are usually the only company providing a service in a particular region  

Characteristics of natural monopolies

they have a large fixed cost The firms have a low marginal costThey occur naturally through the free market. It does not occur by government regulation or any other force

What is the present value of a perpetuity that offers to pay $100 next year and every year after the payment grows at 4.3%. Investments with similar risk are offering an 8% annual return.

Answers

Answer:

PV= $2,702.70

Explanation:

Giving the following information:

Cash flow= $100

Growth rate (g)= 4.3%

Discount rate (i)= 8%

To calculate the present value of the perpetuity, we need to use the following formula:

PV= Cf / (i - g)

PV= 100 / (0.08 - 0.043)

PV= 100 / 0.037

PV= $2,702.70

Assume that the U.S. borrowing rate is 8% while the German is 10%. If Euros are borrowed by a U.S. firm for one year, they would have to _____ against the dollar by_____ to have the same effective financing rate as borrowing dollars. Group of answer choices Appreciate, 1.1818%. Appreciate, 1.8518%. Depreciate, 1.6363%. Depreciate, 1.8518%. Depreciate, 1.1818%.

Answers

Answer:

Depreciate 1.1818

Explanation:

U.S. has a borrowing rate of 8% and German has borrowing rate of 10%. If U.S. dollars are borrowed from firm then Euros will depreciate to match with the dollar borrowing.

[1 + 8% ] / [ 1 + 10%] - 1 = - 1.1818

Sweet Treats common stock is currently priced at $17.15 a share. The company just paid $1.22 per share as its annual dividend. The dividends have been increasing by 2.4 percent annually and are expected to continue doing the same. What is this firm's cost of equity

Answers

Answer:

9.68 percent

Explanation:

Calculation to determine the firm's cost of equity

Using this formula

Cost of equity=[(Annual dividend×Increase in dividends×/Current price of common stock]+Dividends

Let plug in the formula

Cost of equity=[($1.22 × 1.024)/$17.15] + 0.024

Cost of equity=($1.24928/$17.15)+0.024

Cost of equity=0.0728+0.024

Cost of equity=0.0968*100

Cost of equity=9.68 percent

Therefore the firm's cost of equity is 9.68 percent

A bond has a yield to maturity (YTM) of 9.00%. If the YTM decreases to 8.90%, then the price of the bond will_____.

Answers

Answer:

increase

Explanation:

Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89 and the puts cost $2.15. There are no dividends on the stock and the options are European. Assume that all transactions consist of 100 shares or one contract (100 options). Suppose the investor constructed a covered call. At expiration the stock price is $27. What is the investor's profit

Answers

Answer:

-$11

Explanation:

Covered Call involves Buy stocks and Sell call options

Earning $2.89 by selling call. So, at  stock price of $27, the payoff from options is $2.89 per option

Options Profits = $2.89 * 100

Options Profits = $289

Profit of stock = ($27 - $30) * 100

Profit of stock = -$300

Investor Net Profit = Profit of stock + Options Profits

Investor Net Profit = -$300 + $289

Investor Net Profit = -$11

Spanolia LLC is estimating its WACC. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for 1,000 USD. The firm's marginal tax rate is 40 percent. What is the after-tax cost of debt? Answer in % terms to 2 decimal places w/o the % sign.

Answers

Answer:

Spanolia LLC

The after-tax cost of debt is:

= 7.20%.

Explanation:

a) Data and Calculations:

Coupon interest rate of bonds = 12%

Maturity period = 20 years

Selling price = $1,000

Firm's marginal tax rate = 40%

After-tax cost of debt = Coupon interest rate * (1 - tax rate)

= 12% * (1 - 0.4)

= 12% * 0.6

= 7.20%

b) Spanolia's after-tax cost of debt is derived by multiplying the cost of debt by the after-tax rate.  The after-tax cost of debt represents the interest that Spanolia LLC pays on the bonds less the income tax savings that it gains because interest expenses are tax-deductible.

John believes his sales team's performance is due to outside forces, like economic and market factors. Which of the following best describes is John's locus of control?

a. External
b. Market driven
c. Internal
d. Based on labor trends.

Answers

Answer:

a. External

Explanation:

There are only two types of locus of control and these are internal and external. In this scenario, John's locus of control would be external. This is because John is connecting various external forces that he cannot control, to the performance of the sales team. This indicates an external locus of control. If John where to instead attribute something such as hard work and training to his sales team's perfomance, then that would be considered an internal locus of control.

Daphne has received job offers in six different cities across the United States. The table below shows the nominal wage she is being offered in each city and the average monthly rent for an apartment in each city. a. Calculate Daphne’s real wage in terms of how many months of rent her wage could purchase in each city and complete the “Real Wage” column in the table below.

Answers

https://study.com/academy/answer/daphne-has-received-job-offers-in-six-different-cities-across-the-united-states-the-table-below-shows-the-nominal-wage-she-is-being-offered-in-each-city-and-the-average-monthly-rent-for-an-apartment.html

Copy equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $8,000 and an estimated useful life of 5 years. It is estimated that the machine has an estimated 1,000,000 copies. This year 240,000 copies were made. Determine the (a) depreciable cost, (b) depreciation rate, and (c) the units-of-production depreciation for the year.

Answers

Answer:

Results are below.

Explanation:

The depreciable cost is the result of deducting from the purchase price the salvage value:

Depreciable cost= 56,000 - 8,000

Depreciable cost= $48,000

The depreciable rate is the depreciation that the asset suffers in one year express as a percentage:

Depreciation rate= 1/5 = 0.2 or 20% per year

Finally, the units of production depreciation for the first year:

Annual depreciation= [(original cost - salvage value)/useful life of production in copies]*number of copies

Annual depreciation= (48,000/1,000,000)*240,000

Annual depreciation= 0.048*240,000

Annual depreciation= $11,520

Agreement and disagreement among economists
Suppose that Raphael, an economist from an AM talk radio program, and Susan, an economist from a nonprofit organization on the West Coast, are arguing over saving incentives. The following dialogue shows an excerpt from their debate:
Yvette: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain the improvement of living standards.
Sean: I think a switch from the income tax to a consumption tax would bring growth in living standards.
Yvette: You really think households would change their saving behavior enough in response to this to make a difference? Because I don't.
1. The disagreement between these economists is most likely due to (differences in values, differences in perception versus reality, differences in scientific judgments) .
2. Despite their differences, with which proposition are two economists chosen at random most likely to agree?
A. Lawyers make up an excessive percentage of elected officials.
B. Minimum wage laws do more to harm low-skilled workers than help them.
C. Tariffs and import quotas generally reduce economic welfare.

Answers

Answer:

Differences in values C. Tariffs and import quotas generally reduce economic welfare.

Explanation:

Yvette and Sean most likely have a difference in values because they believe that one thing is better for the economy than the other. This means that when it comes down to the economy, they value a certain approach over other approaches.

Economist don't usually find common ground on many things but there are some things where they have a general consensus and one of them is that tariffs and import quotas are bad for the economy. They believe that people stand more to gain from free trade than restricted trade.

The adjusted trial balance of Pronghorn Corp at December 31, 2022, includes the following accounts: Retained Earnings $17,000, Dividends $6,700, Service Revenue $36,300, Salaries and Wages Expense $14,000, Insurance Expense $1,880, Rent Expense $4,080, Supplies Expense $1,440, and Depreciation Expense $900.

Required:
Prepare an income statement for the year.

Answers

Answer and Explanation:

The preparation of the income statement is presented below:

Service Revenue $36,300

Less:

Salaries and Wages Expense $14,000

Insurance Expense $1,880

Rent Expense $4,080

Supplies Expense $1,440

Depreciation Expense $900

Net income $14,000

Basically we subtracted the expenses from the revenues in order to get the net income

A monopolist, unlike a competitive firm, has some market power. It can raise its price, within limits, without the quantity demanded falling to zero. The main way it retains its market power is through barriers to entry—that is, other companies cannot enter the market to create competition in that particular industry.Complete the following table by indicating which barrier to entry appropriately explains why a monopoly exists in each scenario.ScenarioBarriers to EntryExclusive Ownership of a Key ResourceGovernment-Created MonopoliesEconomies of ScaleThe Aluminum Company of America (Alcoa) formerly controlled all U.S. sources of bauxite, a key component in the production of aluminum. Given that Alcoa did not sell bauxite to any other companies, Alcoa was a monopolist in the U.S. aluminum industry from the late-nineteenth century until the 1940s. Patents are granted to inventors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy. Without the existence of patents, it is argued that research and development for improved pharmaceutical products is unlikely to take place, since there's nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the development costs. In the natural gas industry, low average total costs are obtained only through large-scale production. In other words, the initial cost of setting up all the necessary pipes and hoses makes it risky and, most likely, unprofitable for competitors to enter the market.

Answers

Answer:

Monopolist's Market Power and Barriers to Entry

Scenario 1

The Aluminum Company of America (Alcoa) formerly controlled all U.S. sources of bauxite, a key component in the production of aluminum. Given that Alcoa did not sell bauxite to any other companies, Alcoa was a monopolist in the U.S. aluminum industry from the late-nineteenth century until the 1940s.

Barrier to Entry:

Exclusive Ownership of a Key Resource

Scenario 2

Patents are granted to inventors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy. Without the existence of patents, it is argued that research and development for improved pharmaceutical products is unlikely to take place, since there's nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the development costs.

Barrier to Entry:

Government-Created Monopolies

Scenario 3:

In the natural gas industry, low average total costs are obtained only through large-scale production. In other words, the initial cost of setting up all the necessary pipes and hoses makes it risky and, most likely, unprofitable for competitors to enter the market.

Barrier to Entry:

Economies of Scale

Explanation:

Exclusive Ownership of a Key Resource: It has been argued that monopolies do not arise from exclusive ownership of a key resource.  However, having exclusive ownership grants an entity a kind of natural monopoly.

Government-Created Monopolies: Governments create monopolies by protecting intellectual property and issuing patents and copyrights, which give the holders exclusive rights to produce some products or render  some services for a period of time.  The purpose is to encourage innovation and industrialization.

Economies of Scale: When a company is able to produce goods in large quantity, this reduces the average cost per unit, increases efficiency, and economies of scale are achieved because the costs of production are spread over larger units.

Capital budgeting is the process of planning and controlling investments in assets that are expected to produce cash flows for one year or less. This statement is:

Answers

Answer:

True

Explanation:

It is True that Capital budgeting is the process of planning and controlling investments in assets that are expected to produce cash flows for one year or less.

The expected average rate of return for a proposed investment of $4,250,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $8,500,000 over the 20 years is:_________ (round to two decimal points).
a. 10.00%
b. 20.00%
c. 40.00%
d. 1.00%

Answers

Answer:

A

Explanation:

Average rate of return is a capital budgeting method. It is used to determine if a firm should invest in a project or should not invest in a project

average rate of return = average net income / average cost of investment

average net income = (total net income - depreciation) / useful life

(8,500,000 - $4,250,000) / 20 = 212,500

Average cost of investment =( beginning book value of the investment - ending book value of the investment) / 2

($4,250,000 - 0) / 2 = 2,125,000

ARR = 212,500 / 2125,000 = 0.1  = 10%

g Suppose a commercial bank has checkable deposits of $80,000 and the legal reserve ratio is 20 percent. If the bank's required and excess reserves are equal, then its actual reserves

Answers

Answer:

$32,000

Explanation:

The computation is shown below;

Required reserves = checkable deposits × legal reserve ratio

= $80,000 × 20%

= $16,000

Now the actual reserves is

= $16,000 + $16,000

= $32,000

Also excess reserve is equivalent to the required reserves

Hence, the actual reserves is $32,000

Jammer Company uses a weighted average perpetual inventory system and reports the following:
August 2 Purchase 24 units at $18.50 per unit. August 18 Purchase 26 units at $20.00 per unit. August 29 Sale 48 units. August 31 Purchase 29 units at $21.50 per unit.
What is the per-unit value of ending inventory on August 31? (Round your per unit answers to 2 decimal places.)

Answers

Answer: $21.36

Explanation:

Weighted average inventory system works by taking the average of the inventory prices on the different days.

Price on August 29 which is date of sale:

= {(Units purchased on August 2 * Unit cost on August 2) + ( Units purchased on August 18 * Unit cost on August 18)] / (Units purchased on August 2 + Units purchased on August 18)

= [ ( 24 * 18.50) + (26 * 20) ] / (24 + 26)

= $19.28 per unit

48 units were sold so the number of units left are:

= 24 + 26 - 48

= 2 units

Price on August 31

= [ (Units remaining on August 29 * Unit cost on August 29) + ( Units purchased on August 31 * Unit cost on August 31)] / (Units remaining on August 29 + Units purchased on August 31)

= [ (2 * 19.28) + (29 * 21.50) ] / ( 2 + 29)

= $21.36

The cost object of the plantwide overhead rate method is: Multiple Choice The production departments of the company. The unit of product. The production activities of the company.

Answers

Answer: The unit of product.

Explanation:

The units produced of the goods being produced will be the appropriate cost object because it will apportion the overhead cost to the plant based on how much goods were produced by the plant itself because this would determine how much overhead the plant used.

Manufacturing overheads only occur because goods are being produced which is why the best cost object would be those same goods being produced.

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