Answer:
CCC's new required rate of return is 16.5%
Explanation:
in the first we need to determine the risk free rate using the Capital Asset Pricing Model formula of Miller and Modgiliani as shown below
required return=Rf+beta*(average market return-Rf)
Rf is the risk free rate that is unknown
Beta is 1.5
average market return is 10%
required rate of return is 12%
Rf?
12%=Rf+1.5*(10%-Rf)
12%=Rf+15%-1.5Rf
1.5Rf-Rf=15%-12%
0.5Rf=3%
Rf=3%/0.5
Rf=6%
Average rate of 10% has now increased by 30% i.e 10%*(1+30%)=13%
Required rate of return=6%+1.5*(13%-6%)
=6%+1.5*7%
=6%+10.5%=16.5%
Answer:
E. Industry
Explanation:
Industry or an industry is a group of firms/businesses/manufacturers a particular kind of goods and services. In this case, the firms that makes up the industry all manufactures writing implements (such as pen, pencils and markers). Simply put, an Industry is a sector that produces good or related services within an economy.
When classifying a firm into an industry, the major source of revenue is the necessary indicator used in doing so.
Viral Marketing. Viral Marketing is the term used to describe everything from paying people to say positive things on the Internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific websites. <span />
Answer:
The dimensions for the entire area will give the cheapest cost for the entire fence are 40 feet in front, 100 feet on each side, and 40 feet on bottom.
Explanation:
Since Mrs. Jones always wanted a white picket fence in front of her house, and Mr. Jones, her husband, wants a fence around the entire house including a decently-sized lawn in the front and a garden in the back, and the fence border should look like a rectangle, and I have calculated that he would need to fence off an area of 4,000 square feet in order to fit all these things, and he wants to appease his wife and at least build the white picket fence in front of the house, and he plans to build the rest of the fence with chain link, a cheaper material, given that a white picket fence costs $ 7 per foot and a chain link fence costs $ 4 per foot, to determine what dimensions for the entire area will give the cheapest cost for the entire fence, the following calculation should be performed:
Area of a rectangle = base times height = Z x Y = 4,000
80 x 50 = 4,000
40 x 100 = 4,000
20 x 200 = 4,000
20 x 7 x 2 + 200 x 4 x 2 = X = 280 + 1600 = 1880
40 x 7 x 2 + 100 x 4 x 2 = X = 560 + 800 = 1360
80 x 7 x 2 + 50 x 4 x 2 = X = 1120 + 400 = 1520
Therefore, the dimensions for the entire area will give the cheapest cost for the entire fence are 40 feet in front, 100 feet on each side, and 40 feet on bottom.
Answer:
1) CR Cash/Bank $51,229.35 , DR Bonds Receivable Account $50,000 and DR Premium on Bond Payable Account.
(2) Please see attached for Investment Interest Income Amortization Schedule
(3) Recording of Interest Received
June 30, 2019
CR Income statement (Interest Received) -$3,000, CR Premium on Bond Receivable $250
December 31, 2021
CR Income Statement (Interest Received) -$2915.44
Explanation:
(1) CR Cash/Bank $51,229.35 , DR Bonds Receivable Account $50,000 and DR Premium on Bond Payable Account.
(2) Please see attached for Investment Interest Income Amortization Schedule
(3) Recording of Interest Received
June 30, 2019
CR Income statement (Interest Received) -$3,000, CR Premium on Bond Receivable $250
December 31, 2021
CR Income Statement (Interest Received) -$2915.44
