Answer:
B is the correct option High ROE and Low Risk
Explanation:
The return on equity shows the ability of the firm to earn for equity investors. If two investments have same ROE and one has lower risk. Then the rational invester will choose that investment which has a low risk.
Answer:
Al
Explanation:
In order for a contract to be formed, both parties must reach an agreement (usually through offer and an acceptance of terms). The offer made by Greta was a $50 reward for her missing dogs, Al and Ben agree to the contract by searching for the dogs. Since Al finds and returns one of the Dogs, Greta has an obligation to pay Al. As for Ben, since he failed to meet the terms, he should not be paid. On the other hand, since Charlie never saw the posters, there was no contract formed because he could not possibly agree to terms he was not aware, and Greta has no legal obligation to pay Charlie.
Therefore, Greta has a legal obligation to pay Al.
Answer:
Longhorn Goodwill=$7920
Longhorn should record goodwill on this purchase of $7920.
Explanation:
Longhorn Goodwill=Price Paid to Acquire - Total fair Assets
Total Fair Assets=Fair Value of Assets-Fair Value if Liabilities
Total Fair Assets= $89,900-$15,200
Total Fair Assets= $74,700
Longhorn Goodwill=Price Paid to Acquire - Total fair Assets
Longhorn Goodwill=$82,620-$74,700
Longhorn Goodwill=$7920
Longhorn should record goodwill on this purchase of $7920.
Answer:
The country has closed economy; it means there is no other trading relation with, outside countries. Export imports do not affect the economy of the country, and here is no government interference as mentioned in the question. This is a self sufficient country, its demand fulfilled from inside of the country. So its aggregate price levels and interest rate are fixed. MPC or the marginal propensity to consume indicates whether there is an increase in disposable income or increase in consumption. Here consumption increases equal to the increase in the income.
MPC = ΔC /ΔY which is constant here.
The increase in income in this country is mostly permanent and increases in a fix period of time and proportionately.
C= 200 +0.75 YD (YD is disposable income), Y=75, GDP =$900
The economy achieves it’s equilibrium level when supplies meets demand or the GDP is equals to it’s total expenditure. MPC is a fraction between 0 and 1 , MPC means a change in consumption brings the change in YD . here the MPC is equals to MPS which means the change in saving bring by the change in disposable income. All income here saved or consumed. So the change in income equals to the change in consumption or saving.
MPC+ MPS = 1
So the average propensity to consume is proportionate to income which is spend on consumption. APC= C/ YD. And the average proportionate to save is equals to income saved APS= S/YD . so here APC +APS = 1. The increase in production or price leads to the increase in the total value of output, that is the equilibrium condition.
Explanation:
Answer:
The correct answer is option (b) $5400
Explanation:
Solution
Calculation of the cost of direct material on May 1
Now,
The starting work In process inventory = Direct materials Cost + Direct labor Cost + Manufacturing overhead applied on W.I.P
13,500 = Direct materials cost + 4500 + 3600
Thus,
Direct material cost = 13500 - 4500-3600 = $5400
Note: Direct labor cost = 300 * 15 = $ 4500
The manufacturing overhead = 300 hour * $12 = $ 3600
So, only expenses associated to work in process will be considered, hence only direct labor and manufacturing overhead are used to work in process are considered.
