Answer:
Dividends = 6,000
Explanation:
Ending liabilities = Beginning liabilities - Decrease in liabilities
= $6,900 - $1,200
= $5,700
Ending net assets = Ending total assets - Ending total liability
$3,900 = Ending total assets - $5,700
Ending total assets = $3,900 + $5,700
= $9,600
Ending RE = Ending total assets - Ending liabilities
= $9,600 - $5,700
= $3,900
Dividend = Beginning RE + Net income - Ending RE
= $6,900 + $3,000 - $3,900
= $6,000
It is false that the market rate is used to calculate the actual cash payments made to bondholders rather it is the economic price for goods and services that is offered for them in free market or market place. It is also called a going rate, the market value or market price are equal only under conditions of market equilibrium and rational expectation.
Financial, operational, perimeter, and strategic risks.
Like costs, labor, and weather.