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2 years ago

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Barges' has an asset beta of .57, the risk-free rate is 4.3 percent, and the market risk premium is 7.7 percent. what is the equ

ity beta if the firm has a debt-equity ratio of .56

1 answer:

Luden [163]2 years ago

7 0

Barges' has an asset beta of .57, the risk-free rate is 4.3 percent, and the market risk premium is 7.7 percent.

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Piper owns a vacation cabin in the Tennessee mountains. Without consider-ing the cabin, she has gross income of $65,000. During

zloy xaker [14]

Answer and Explanation:

a) rent income from sarah's vacation house will not affect her AGI, because according to rules if vacation house is used fewer than 15 days, in that case it is treated as a personal house and its expenses and income have not effect on the AGI. only the mortgage interest and property yax will be deducted from AGI.

b) only the mortgage interest and property yax will be deducted from AGI. other expenses are non-deductible from AGI because these are treated as personal expenses.

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2 years ago

Which statement best describes a significant similarity between the AICPA and IESBA codes? Both codes incorporate the conceptual

34kurt

Both codes incorporate the conceptual framework approach for evaluating threats when specific rules on a matter do not exist.

Explanation:

IFAC has enacted a Code of Ethics for Professional Accountants (IESBA Code), the International Ethics Standards Committee for Competent. The latest IESBA Code edition was upgraded and modified in July 2009 and comes into force on 1 January 2011. The adjustments clarified and considerably strengthened the independence specifications for all competent accountants.

IESBA and AICPA are more comparable than they are, but there are substantial differences. In many instances it will produce similar effects if codes are added to the same pattern of truth.

The IESBA Code deals with a number of possible independence issues which are covered by the AICPA Conceptual Structure but not AICPA. Examples include the Long Senior Human Resources Group (including Team Rotation).

Certain independence restrictions are enforced by the IESBA Code representing the "extent of public interest in certain companies" (i.e. entities listed on an accepted stock exchange for whose shares are listed), and institutions whose auditors are legally or administrative authorities required to comply with the same requirements for independence as the listings).

The IESBA splits the conditions for freedom into two regions. Section 290 offers the toughest prohibitions and includes accounting reports and audits. Section 291 generally provides less stringent requirements of freedom for all other insurance obligations. The AICPA does not change the principles of equality.

6 0

2 years ago

The Nelson Company has $1,750,000 in current assets and $700,000 in current liabilities. Its initial inventory level is $490,000

aleksley [76]

Answer:

(a) Short-term debt can increase by a maximum of $466,666.67 without pushing its current ratio below 1.9

(b) The firm's quick ratio after Nelson has raised the maximum amount of short-term funds is 1.34

Explanation:

Current assets = $1,750,000

Current liabilities = $700,000

Initial inventory level = $490,000

Current ratio = Current assets ÷ Current liabilities

= $1,750,000 ÷ $700,000 = 2.5

1.9 = (Current assets + $\Delta{NP$ ) ÷ (Current liabilities + $\Delta{NP$ )

1.9 = ($1,750,000 + $\Delta{NP$ ) ÷ ($700,000 + $\Delta{NP$ )

1.9 × ($700,000 + $\Delta{NP$ ) = ($1,750,000 + $\Delta{NP$ )

$1,330,000 + $1.9\Delta{NP$ = $1,750,000 + $\Delta{NP$

$0.9\Delta{NP$ = $1,750,000 - $1,330,000

$\Delta{NP$ = $466,666.67

Short-term debt can increase by a maximum of $466,666.67 without pushing its current ratio below 1.9

Quick ratio = (Current assets - Inventories) ÷ Current liabilities

= $937,500 ÷ $700,000

= 1.34

5 0

2 years ago

On June 30, 2019 Martin Corp.’s balance sheet included a 10%, $3,000,000 note payable. The note is dated October 1, 2017, and is

stellarik [79]

Answer:

$225,000

Explanation:

Data provided in the question:

Note payable = 10%, $3,000,000

Payment amount = $1,000,000

Now,

Since the first payment is made in the month of October

Therefore,

Duration from October 2018 to October 2019 = 9 months = $\frac{9}{12}$ years

Therefore,

Interest payable for 2019 will be = $3,000,000 × 0.10 × $\frac{9}{12}$

= $225,000

4 0

2 years ago

The owner of an interior lot has received notice that the city intends to place a sidewalk across his property. The lot measures

LUCKY_DIMON [66]

Answer:

<em>The amount that he will be charged in a special assessment tax to cover his cost of the sidewalk Is $2000 </em>

<em></em>

Explanation:

We are told that the property is an interior lot, so we'll only consider one of the width of his plot, since the sidewalk can only pass through the front or the back of his property.

The property measures 100' x 500' , that is 100 ft width by 500 ft length

The cost of the sidewalk is $40 per linear ft

The city will pick up 50% of the cost.

For a width of the lot, the cost per linear length will be

100 x $40 = $4000

The city covers 50% of this cost, leaving 50% of the cost to the homeowner.

The homeowner's cost will be 50% of $4000

= 0.5 x $4000 =<em> $2000 </em>

<em>The amount that he will be charged in a special assessment tax to cover his cost of the sidewalk Is $2000 </em>

7 0

2 years ago