Answer:
r = 11.55%
Explanation:
Given that,
Annual dividend paid last week, D1 = $2.50
Dividend growth rate, g = 8%
current price of common stock = $76
Stock price = D1 ÷ (r - g)
$76 = [$2.50 × (1 + 8%)] ÷ (r - 8%)
$76 = 2.7 ÷ (r - 8%)
(r - 8%) = 0.0355
r = 0.0355 + 0.08
= 0.1155 × 100
= 11.55%
Therefore,
Return, r = 11.55%
For long-lived assets that have been in use for more than one accounting period, Depreciation Expense on the debit. Accumulated Depreciation on the credit.
Therefore, the entry that was made by the accountant, assets and stockholders' equity will be decreased.
- Depreciation simple defined as the allocation of the cost of a long-lived, tangible asset over its useful life making an expense on the income statement that is matched against the revenue gotten by the use the asset.
The effect of recording depreciation expense on the accounting equation is that Total assets decrease and Total stockholders' equity decreases
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Answer: Volkswagen Emission scandal
Explanation: The Supervisory Board should be “responsible for monitoring the Management and approving important corporate decisions , however “investors and governance experts say the emissions scandal shows that it lacks the independence and authority to do this” .
1nternal Controls
Many officials at Volkswagen were unaware of any wrongdoing, although this suggests the company can be salvaged and there are people at the top that can help turn this back around. It does also highlight the need for serious improvement in terms of the firm's internal controls. For issues on a scale as large as this, there should be a sound whistle blowing system in place to alert the correct people of such instances, so action can be taken before any issue further escalates
Answer:
Inventory turnover= 6.7
Explanation:
Giving the following information:
cost of goods sold= $10,351,500
The average inventory for the year amounted to $1,545,000.
<u>To calculate the inventory turnover, we need to use the following formula:</u>
Inventory turnover= Cost of goods sold/ average inventory
Inventory turnover= 10,351,500 / 1,545,000
Inventory turnover= 6.7
Answer:
3. Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.
Explanation:
Retained earnings or retained earnings are those benefits that the company has earned and that instead of distributing among the shareholders, they decide to invest in the company itself.
These earnings can be used to achieve further growth of the company, such as increasing the workforce, improving the budget dedicated to research or to obtain a liquidity fund that allows the company to correct possible emergency situations in the future.