Calculate the observed risk premium in each year for the large-company stocks versusthe T-bills.b-1. What was the arithmetic average risk premium over this period? (A negativeanswer should be indicated by a minus sign. Do not round intermediatecalculations and enter your answer as a percent rounded to 2 decimal places,e.g., 32.16.)b-2. What was the standard deviation of the risk premium over this period? (Do notround intermediate calculations and enter your answer as a percent rounded to2 decimal places, e.g., 32.16.)b-1.b-2.> Answer is complete but not entirely correct.Average risk premiumRisk premium standard deviation-3.00 × %24.00 × % Consider the following table for a period of six years:Year123456Large-CompanyStocks- 16.09%-26.8937.5124.217.726.85ReturnsU.S.Treasury Bills7.57%8.136.156.475.598.06

Standard Deviation: It is a statistical measure used to measure the dispersion of a set of data…

Answered: b-1. What was the arithmetic average…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter8: Liabilities And Stockholders' Equity

Section: Chapter Questions

Problem 8.1.2MBA

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Randall Corporation reported the following revenue data:Year Net revenues (in millions)$$$$6,8007,0046,7327,2762016201720182019Use 2016 as the base year. The trend percentage in 2019 is closest toa. 93%.b. 104%.c. 107%.d. 112%
The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (e) through (k). Year Rate of Return of Company 1 Rate of Return of Company 21996 0.203 0.3981997 0.310 0.5101998 0.267 0.4101999 0.195 0.4362000 -0.101 -0.0602001 -0.130 -0.1512002 -0.234 -0.3572003 0.264 0.3282004 0.090 0.2072005 0.030 -0.0142006 0.128 0.0932007 -0.035 0.027 (k) Are there any years where the rate of return of Company 2 was unusual?
A Corporation had the following data concerning selected financial data taken from the records listed below.For the year ended December 312021 2020Cash 80,000 640,000Note and account receivable 400,000 1,200,000Merchandise Inventory 720,000 1,200,000Marketable Securities 240,000 80,000Land and Building (net) 2,720,000 2,880,000Bond Payable 2,160,000 2,240,000Account Payable 560,000 880,000Note Payable Short Term 160,000 320,000Sales (20% cash, 80% credit) 18,400,000 19,200,000Cost of Good Sold 8,000,000 11,200,000Required : Compute the following ratios1. current ratio as of December 31,20212. Quick ratio as of December 31, 20213. Account Receivable Turnover ratio for 20214. Merchandise inventory turn over for 20215. The Gross margin for 20206. the average age of account Receivable for 2021( use 360 days
Selected information is taken from the financial statements of Little Company for two successive years follows. Compute the percentage change from 2020 to 2019 whenever possible. 2020 2019 Accounts receivable............................... P126, 00 P150,000 Marketable securities............................. -0- 250,000 Retained earnings................................... 80,000 (80,000) Notes receivable..................................... 120,000 -0- Notes payables........................................ 860,000 800,000 Cash......................................................... 82,400 80,000 Sales.................................................. 990,000 900,000
The following data apply to the next six problems. Consider Fisher & Company's financial data as follows (unit: millions of dollars except ratio figures):Cash and marketable securities $100Fixed assets $280Sales $1,200Net income $358Inventory $180Current ratio 3.2Average collection period 45 daysAverage common equity $500 Calculate the amount of the long-term debt.(a) $134 (b) $500(c) $74 (d) $208
The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous YearAccounts payable $111,000 $100,000Long-term debt 132,680 124,000Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis?
The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous YearAccounts payable $114,240 $102,000Long-term debt 127,200 120,000 Based on this information, what is the amount and percentage of increase or decrease that wouldbe shown on a balance sheet with horizontal analysis?
Selected information taken from the financial statements of Wiley Company for two successibe years follows. You are to compute the percentage change from year 1 to year 2 whenever possible. Round all calculations to the nearest whole percentage. Year 2 Year 1 a. Accounts Receivable $126,000 $160,000 b. Marketable Securities -0- 250,000 c. Retained Earnings 80,000 (80,000) d. Notes Recievable 120,000 -0- e. Notes Payable 890,000 800,000 f. Cash 84,000 80,000 e. Sales 970,000 910,000
1. PGold Company provided the following trial balance on December 2020: Total credits amounting to P3,000,000 as follows; Bank overdraft P100,000, Accounts Payable P200,000, Accrued expenses P150,000, Ordinary share capital P1,500,000, Share premium P250,000, Retained earnings P800,000. Total debits of P3,000,000 composed the following; Accounts receivable P350,000, Inventory P600,000, Prepaid expenses P100,000, Land held for sale P1,000,000, Property, plant & equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and recorded on December 29, 2020 resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2021. Land held for resale was sold for cash on January 31, 2021. The entity issued the financial statements on March 31, 2021. What is the total shareholders equity?
1. PGold Company provided the following trial balance on December 2020: Total credits amounting to P3,000,000 as follows; Bank overdraft P100,000, Accounts Payable P200,000, Accrued expenses P150,000, Ordinary share capital P1,500,000, Share premium P250,000, Retained earnings P800,000. Total debits of P3,000,000 composed the following; Accounts receivable P350,000, Inventory P600,000, Prepaid expenses P100,000, Land held for sale P1,000,000, Property, plant & equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and recorded on December 29, 2020 resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2021. Land held for resale was sold for cash on January 31, 2021. The entity issued the financial statements on March 31, 2021. What total amount should be reported as as current assets?
1. PGold Company provided the following trial balance on December 2020: Total credits amounting to P3,000,000 as follows; Bank overdraft P100,000, Accounts Payable P200,000, Accrued expenses P150,000, Ordinary share capital P1,500,000, Share premium P250,000, Retained earnings P800,000. Total debits of P3,000,000 composed the following; Accounts receivable P350,000, Inventory P600,000, Prepaid expenses P100,000, Land held for sale P1,000,000, Property, plant & equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and recorded on December 29, 2020 resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2021. Land held for resale was sold for cash on January 31, 2021. The entity issued the financial statements on March 31, 2021. What total amount should be reported as as current liabilities?
The condensed financial statements of Ivanhoe Company for the years 2020-2021 are presented below: (See Images) Compute the following financial ratios by placing the proper amounts for numerators and denominators. (Round per unit answers to 2 decimal places, e.g. 52.75.) (a) Current ratio at 12/31/21 $ $ (b) Acid test ratio at 12/31/21 $ $ (c) Accounts receivable turnover in 2021 $ $ (d) Inventory turnover in 2021 $ $ (e) Profit margin on sales in 2021 $ $ (f) Earnings per share in 2021 $ (g) Return on common stockholders’ equity in 2021 $ $ (h) Price earnings ratio at 12/31/21 $ $ (i) Debt to assets at 12/31/21 $ $ (j) Book value per share at 12/31/21 $

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