A security with a beta of 1 has a return last year of 8% when the market has a return of 12%.
Answer: Option A
<u>Explanation:</u>
In a market of the capitals, the return that a person will get from the security will depend upon the risk that has been associated with that security. The CAPM says that the return of the security that a person will get depend upon the beta of the security. Here beta is the measure with which we can measure the risk of the security. It is an absolutely correct measure of the security risk.
Answer:
Total cost= $101,380
Explanation:
Giving the following information:
Production for April= 56,000
Production for May= 52,000
The raw material costs $1.85 per unit.
Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials. The April 1 inventory for this material is 16,800 units.
We need to determine the budgeted material purchases for April:
Purchases= production for April + ending inventory - beginning inventory
purchases= 56,000 + (52,000*0.3) - 16,800= 54,800 units
Total cost= 54,800*1.85= $101,380
Answer:
The correct answer is letter "A": Provides information primarily for external decision makers.
Explanation:
Financial Accounting is the method of gathering, recording, summarizing and publishing financial data on a company that is useful to <em>investors and creditors</em>. The ultimate goal is to accurately report a business' financial picture and results at a given point in time and over a specified period.
<em>Financial accounting output is a financial report containing different statements and explanatory notes.</em>
Answer:
cost of goods available for sale= $29,100
Explanation:
Giving the following information:
Sales Revenue$26,000
Beginning Finished Goods Inventory8,000
Ending Finished Goods Inventory13,500
Cost of Goods Manufactured15,600
cost of goods available for sale= beginning finished goods inventory + purchases
We have to find the amount of purchases.
We know that:
cost of goods manufactured= Beginning Finished Goods Inventory + purchases - Ending Finished Goods Inventory
15600= 8000 + purchases - 13500
purchases= 15600 - 8000 + 13500
purcases= 21,100
cost of goods available for sale= 8000 + 21100= $29,100
