Answer:
A. True
Explanation:
The line credit is a loan in which the limit is set by the bank. It can be in formal or an informal agreement which is done between the financial institution and borrower.
In this, the time period is mentioned at which the borrower returned back the money also the borrower paid the interest to the bank it also maintained the financial position of the borrower
Hence, the given statement is true
Answer:
$296,969.70
Explanation:
Days of sales outstanding = number of days in a period / receivables turnover
Receivables turnover = revenue / average receivables
33 = 365 / receivables turnover
receivables turnover = 11.060606
11.060606 = revenue / $350,000
revenue = $3,871,212.12
with the new policy and same revenue :
28 = 365 / receivables turnover
receivables turnover = 13.035714
13.035714 = $3,871,212.12 / average receivables
= $296,969.70
Answer:
$10.28
Explanation:
<u>Step 1. Firstly we use the of the The dividend discount model (DDM)</u>
This calculation is: D1 = D0 x (1 + g)
D1 = $0.72 x (1 + 2.8%) = $0.74.
Where
Do = Dividend now
D1 = Dividend in year 1
g = growth
<u>Step 2 Next, using the Gordon Growth Model, </u>
Price per share is found to be D(1) / (r - g)
Price = $0.74 / ( 10% - 2.8%) = $10.28
where:
Do = Dividend now
D1 = Dividend in year 1
g = growth
r = required return
Answer:
a. a majority of both shareholders and directors must approve.
Explanation:
Whenever a corporation decides to dispose off all of it's assets or substantially all of it's assets to another corporation, following points are noteworthy
- The Board of directors first have to propose a resolution regarding disposition which has to be approved
- Secondly post approval of the said resolution, the act of "disposition" also requires approval by the corporation's shareholders.
- Such approval must be obtained by majority of the votes cast in it's favor.
In short, disposition of all or substantially all the assets requires an approval of a majority of both shareholders and directors.
