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2 years ago

Which investment has the least amount of risk?

Business

1 answer:

exis [7]2 years ago

5 0

Answer:

A. standard deviation = $500, expected return = $5,000

Explanation:

For analysis which investment involved the least amount of risk we need to determine the coefficient of variation i.e. shown below:

As we know that

Coefficient of variance = standard deviation ÷ expected return

A = $500 ÷ $5,000 = 0.10

B = $700 ÷ $500 = 1.40

C = $900 ÷ $800 = 1.125

D = $400 ÷ 350 = 1.143

As it can be seen that investment A has the leas amount of risk hence, the same is to be considered

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On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of

Anuta_ua [19.1K]

Answer:

Explanation:

The journal entry is shown below:

Accumulated depreciation - machine A/c Dr $28,000

Loss on disposal of machine A/c $1,000

To Cash $1,000

To Machinery A/c $28,000

(Being the disposal of machinery is recorded)

For disposal of machinery, we debited the accumulated depreciation, loss on disposal of machine and credited the cash account and machinery account

6 0

2 years ago

Here is the income statement for Larkspur, Inc.

adoni [48]

Answer:

a. The Earnings per share is $3.87

b. The Price-earnings ratio is 3.87 times

c. The Payout ratio is 12.21%

d. The Times interest earned is 10.32

Explanation:

a. The Earnings per share would be calculated as follows:

Earnings per share = (Net income – Preferred stock dividend)/Average number of common shares outstanding

We need to use the formula of the Weighted Average number of common shares outstanding to calculate the Preferred stock dividend.

Therefore, Weighted Average number of common shares outstanding = (Number of common shares outstanding in the beginning + Number of common shares outstanding in the end)/2

= (27,600 + 36,700)/2

= 32,150

Preferred stock dividend = $6,700

Therefore, Earnings per share= (131,100 – 6,700)/32,150

= 124,400/42,150

= $3.87

b. The Price-earnings ratio would be calculated as follows:

Price - earning ratio = Market price per share / Earning per share

= $15 / $3.87 = 3.87 times

c. The Payout ratio would be calculated as follows:

Payout ratio = (Total cash dividends - Preferred stock dividends) / Net income

= ($22,700 - $6,700) / $131,000 = 12.21 %

d. Times interest earned would be calculated as follows:

Times interest earned = (Net income + Interest expense + Tax expense)/Interest expense

= (131,100 + 16,700 + 24,600)/16,700

= 10.32 times

5 0

2 years ago

Imagine that in the frame of Azerbaijan National Football Championship Nefthci and Karabakh football teams will have a match in

Ymorist [56]

Answer:

The fans as they purchase tickets

Explanation:

The government has imposed a $2 tax per seat. The stadium management will increase the price of tickets per seat by at least $2. It means the customers (fans) will pay an extra amount per seat to cater for the taxes.

The stadium management will act as a tax intermediary. They will collect the $2 per seat tax from the ticket sales and remit it to the government.

8 0

1 year ago

Nieland Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $288,000 and a re

oksian1 [2.3K]

Answer:

The book value of patents should be reported at: $336,000.

Explanation:

Under U.S GAAP, R&D is not permitted to capitalized, thus R&D expenses incurred in the period is not relevant in calculation the book value of patent. On the other hand, successful ligation costs are allowed to be capitalized.

We have the book value of patents = Book value at opening of 2020 + Cost of successful patent infringement suit at 1st December 2020 - amortization of patents in the period of the year 2020;

where: Amortization of patents in the period = 12 months of book value at opening of 2020 amortization + 1 month of Cost of successful patent infringement suit = 288,000/ ( 8 x 12) x 12 + 85,000/( 1 + 7 x 12) x 1 = 37,000 ( as amortization is distributed equally on remaining useful life ( in months))

=> The book value at the end of 2020 = 288,000 + 85,000 - 37,000 = $336,000

3 0

2 years ago

Automobiles arrive at the drive-through window at the downtown Baton Rouge, Louisiana, post office at the rate of 4 every 10 min

Paul [167]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

Download xlsx

5 0

1 year ago