In January, Tongo, Inc., a branding consultant, had the following transactions. a. Received $13,200 cash for consulting services rendered in January b. Issued common stock to investors for $8,000 cash. c. Purchased $11,200 of equipment, paying 25 percent in cash and owing the rest on a note due in 2 years. d. Received $11,800 cash for consulting services to be performed in February e. Bought $1,750 of supplies on account. f. Received utility bill for January for $2,060, due February 15. g. Consulted for customers in January for fees totaling $19,900, due in February h. Recelved $13,300 cash for consulting services rendered in December. i. Paid $875 toward supplies purchased in (e). Credit Account Title Cash Accounts Receivable Supplies Equipment Accounts Payable Unearned Revenue Note Payable Common Stock Retained Earnings Service Revenue Utilities Expense Debit $14,200 17,200 1,260 4,800 6,100 3,250 0 10,000 18,110 0

The law of demand is the assertion that ?

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Kumar consulting operates several stock investment portfolios that are used by firms for investment of pension plan assets. last year, one portfolio had a realized return of 12.6 percent and a beta coefficient of 1.15. the average t-bond rate was 7 percent and the realized rate of return on the s& p 500 was 12 percent. what was the portfolio's alpha?