Pneumonoultramicroscopicsilicovolcanoconiosis
Answer:
Bank B for the car loan and Bank A for the savings account
Explanation:
The reason why this would be your answer is because when you are opening a savings account, you want to make sure that the interest is high. However, when you get a new car, you want to make sure that the interest is low. Bank B provides a low interest rate, while Bank A provides a high interest rate.
Why are the two the opposite? Here's the answer:
Why you should get a high interest rate for a savings account:
You should get a high interest rate for the savings account because the interest you have for the savings account is the money that the bank will give you, so it's pretty much free money that the bank is giving you for having your money saved in their bank. If you want to get more money from the bank because of your savings account, then you should find one with a high interest rate
Solution:
Given,
R= 16%
g= 8%
Calculate stock value ,
=
x (1+g) ;
D1= 2.16
P0= ( 2.16/0.16 )-0.08
P0= $27
A value stock is a lower price protection exchange that can otherwise be implied by the performance of the company.
Answer:
Option (B) is correct.
Explanation:
Cost of Equity (Ke) = Rf + Beta ( Rp)
where,
Rf = risk free rate
Rp = Market risk premium
Hence,
Beta systematic risk
:
= 7% + 1.7 (6%)
= 7% + 10.2%
= 17.2%
Post Tax cost of debt:
= Kd ( 1 - T)
where,
Kd = cost of debt
T = tax rate
= 20% * (1-0.4)
= 12%
WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]
where,
We = weight of equity
Wd = weight of debt
= [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]
= 10.32% + 4.80%
= 15.12%
Answer:
Amount Debit($) Credit($)
Assets
Cash 37,641
Office Supplies 890
Prepaid Insurance 4,600
Office Equipment 12,900
Liabilities
Accounts Payable 12,900
Equity
Y. Min, Capital 18,000
Y. Min, Withdrawals 3,329
Revenue
Engineering Fees Earned 36,000
Expenses
Rent Expense <u>7,540</u>
Total 66,900 66,900
Explanation:
Trial Balance sheet includes all the accounts available in ledger.
Assets, Liabilities, Equity Revenue and expenses are added, however they are not given in our case
Amount Debit($) Credit($)
Assets
Cash 37,641
Office Supplies 890
Prepaid Insurance 4,600
Office Equipment 12,900
Liabilities
Accounts Payable 12,900
Equity
Y. Min, Capital 18,000
Y. Min, Withdrawals 3,329
Revenue
Engineering Fees Earned 36,000
Expenses
Rent Expense <u>7,540</u>
Total 66,900 66,900
