Answer:
Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.
Explanation:
Expected return= free return + Beta (Expected rate of return – risk free rate)
Portfolio A
6%+ +.8*6%
= 6%+4.8%= 10.8%
Portfolio B
6%+1.5(6%)
6%+9%= 15%
It depends on different factors. Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.
Answer:
It will take 1.97 years to payback the machine.
Explanation:
Giving the following information:
It will cost $7,500 to acquire a cotton candy cart. Cart sales are expected to be $3,800 a year for four years.
We need to determine the amount of time required to payback the machine.
Year 1= 3,800 - 7,500= -3,700
Year 2= 3,800 - 3,700= 100
3,700/3,800= 0.97
It will take 1.97 years to payback the machine.
Answer:
The correct answer is C
Explanation:
NCI stands for the Non-controlling interest which also called as the minority interest, it is defined as the position of ownership where the shareholder owns outstanding shares that is less than 50% and has no control on the decisions.
Under the situation where the active prices for the shares are not acquired by the acquirer states a different value, it is not appropriate to assume the value of the non-controlling shares same as of the controlling shares.
Answer: $0.79
Given:
C=Cost of the land: $1,981,300
S=Salvage value of the land: $267,000
N=Total number of ores mined= 2,170,000 tons
To get the depletion expense per ton of ore:
(C-S)/N
=($1,981,300-$267,000)/2,170,000
=1,714,300/2,170,000
=$0.79
