Answer:
c. 12%; 15.7%
Explanation:
The computations are shown below:
For expected rate of return:
= (Weightage of risky asset × return of risky asset) + (Weightage of treasury bill × return of treasury bill)
= (0.70 × 0.15) + (0.30 × 0.05)
= 10.5% + 1.5%
= 12%
For standard deviation:
= Weightage of risky asset × (variance ^ half)
= 0.70 × (0.05 ^ 0.5)
= 15.7%
Answer:
B. 9.0 times.
Explanation:
Accounts Receivable Turnover (ART) = Net credit sales/ Average accounts receivable
Net credit sales = <em>$7,200,000</em>
Average accounts receivable = (beginning AR - ending AR) /2
Average Accounts receivable = ($820,000 + $780,000)/2
Average AR = <em>$800,000</em>
Therefore Accounts receivable turnover = $7,200,000/800,000 = 9.0 times
Answer:
Equity financing
Explanation:
Equity financing is the kind of financing, which involves or comprise of a procedure for raising the capital or funds by the sale of the shares. The companies raise the money because they have a short term need in order to pay the bills or might have a objective and needs the funds or money to invest for the purpose of growth.
So, in short, it is a form or kind of financing which comprise of raising the funds or money by selling the shares or stock in a business.
Under this case, the Navim used the equity financing as he sold the stock of the company to investors in order to finance.
Answer:
Total material price variance= $380 favorable
Explanation:
Giving the following information:
Material A:
Purchase= 1,000 units
Purchase price= $2.1
Standard price= $2
Material B:
Purchase= 2,400 units
Purchase price= $2.8
Standard price= $3
<u>To calculate the total material price variance, we need to use the following formula on each material:</u>
<u></u>
Direct material price variance= (standard price - actual price)*actual quantity
<u>Material A:</u>
Direct material price variance= (2 -2.1)*1,000
Direct material price variance= $100 unfavorable
<u>Material B:</u>
Direct material price variance= (3 - 2.8)*2,400
Direct material price variance= $480 favorable
Total material price variance= -100 + 480
Total material price variance= $380 favorable
Answer:
b.0.22
Explanation:
Return on investment (ROI) = Operating income/ Beginning Operating Asset = $ 92,000/ $440,000 = 0.22