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1 year ago

What are the purposes of (b) the balance sheet

1 answer:

5 0

The balance sheet of a company provides important information on the assets owned by the company, its liabilities, and the shareholder’s equity. They are essentially financial statements that outline the financial condition and history of a company.

Balance sheets have various purposes. They help stakeholders to assess and evaluate the business, and take important decisions that promote their interests.

The management may use it to strategize and chart out future plans to cut costs, invest and expand in certain areas, etc. Investors use it to decide whether or not to pour money into the company. Lenders evaluate the credit worthiness of the company, and decide on forwarding loans to it.

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All of the following statements regarding leases are true except _______.

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Answer:

I think its D

Explanation:

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What is price elastic of supply

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2 years ago

Assume that Jose is indifferent between investing in a corporate bond that pays 10 percent interest and a stock with no growth p

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Answer:

e. None of these.

Explanation:

Step 1. Given information.

Taxable Dividend Yield = 9.7%

Tax rate on Dividend yield=15%

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Let Tax rate on Interest=X

Step 2. Formulas needed to solve the exercise.

Interest rate * (1 - x) = taxable dividend yield ( 1 - tax rate on dividend yield)

Step 3. Calculation.

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2 years ago

Palencia Paints Corporation has a target capital structure of 25% debt and 75% common equity, with no preferred stock. Its befor

Ivenika [448]

Answer:

Ke 0.173103448

WACC 14.63250%

Explanation:

From the gordon model we determinate Ke

$\frac{divends}{return-growth} = Intrinsic \: Value$

$\frac{divends}{Price} = return-growth$

$\frac{divends}{Price} + growth = return$

D1 2.7 (we are given with D0 so we multiply by (1+g) to get D1

P 29

g 0.08

$$Cost of Equity =\frac{2.7}{29} +0.08$

Ke 0.173103448

Now we use this value to determinate the WACC

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Ke 0.1731

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Kd 0.11

Debt Weight 0.25

t 0.4

$WACC = 0.1731(0.75) + 0.11(1-0.4)(0.25)$

WACC 14.63250%

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2 years ago

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include which of the

oksano4ka [1.4K]

The answer is C.....

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3 years ago

Read 2 more answers