Answer:
Th answer is: C) $13,000
Explanation:
The following amounts should be allocated to trust principal:
- $7,000 from the sale of bonds; those bonds were part of the trust principal
- $6,000 of stock dividends; new shares should be added to the trust principal since no cash was received
Earnings from rent ($1,000) and interest ($3,000) should be recorded as gross income.
Answer:
The correct answer is d. liquid financial assets that for tax purposes must be reinvested in the firm if not distributed as dividends to shareholders.
Explanation:
One of the variables that best measure a company's financial capacity is free cash flow (FCF). It consists of the amount of money available to cover debt or distribute dividends, once payment to suppliers and purchases of fixed assets (construction, machinery ...) have been deducted.
In general, this calculation serves to measure the ability of a business to generate cash regardless of its financial structure. That is, the FCF is the cash flow generated by the company that is available to meet payments to its financing providers.
In short, the FCF is the balance of treasury that is free in the company, that is, the money available once the mandatory payments have been met. Normally, the FCF is used to remunerate shareholders via dividends or to amortize the principal of the debt and meet interest.
Answer:
Jason investment - debt security
Hernando investment - equity security
Explanation:
By using the information, we get to know that Jason expected that full investment would be paid back along with some interest which means he is dealing in debt security which includes the loan plus interest part.
Whereas, Hernando expected that dividend is received on that amount which he is invested which means that he is dealing in equity security.
The equity security involves stock in equity security whereas loan or bond is a debt security
Answer:
Final value= $15,101.13
Explanation:
Giving the following information:
You believe that you will be able to invest $3,000, $3,300, $3,800, and $4,000 next four years. The interest rate is 5%.
To calculate the final value of each deposit we need to use the following formula:
FV= PV*(1+i)^n
Year 1= 3,000*1.05^3= $3,472.88
Year 2= 3,300*1.05^2= 3,638.25
Year 3= 3,800*1.05= 3,990
Year 4= 4,000
Total= $15,101.13
Answer:
c. It is easily adaptable to as many suppliers as you need to evaluate
Explanation:
It involves many factor to analyze a decision due to variety of different assessments it has, it can be applicable to many supplier. It is very helpful to decision making because every aspect of each supplier is analyzed and makes a quality decision. Multi criteria analysis assess every supplier on different factors to find the difference between them and make a best decision.
