B.one loaf of bread free when you buy one at regular price of 68 cents per loaf
Answer:
Texia; Texia
Explanation:
A country has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
Texia can produce 1000 units of food while Urbania can produce 500 units of food . Texia produces more food
Texia can produce 500 units of clothing while Urbania can produce 200 units of clothing. Texia produces more clothing
Texia has an absolute advantage in both activities
Answer:
First we need to compute levered cost of equity
Ro = 15.40%
D/E ratio = 0.40/(1-0.40) = 0.6667
Rd=7.2%
We have following formula for levered cost of equity using MM model proposition II:
Without taxes
Re = Ro + (Ro – Rd) x (1-t) x D/E
= 0.1380 + (0.1380-0.0720)x (1-0.0)x0.6667
= 0.1380 + 0.0440
= 18.20%
Therefore, new cost of equity would be 18.20%.
With taxes
Re = Ro + (Ro – Rd) x (1-t) x D/E
= 0.1380 + (0.1380-0.0720)x (1-0.34)x0.6667
= 0.1380 + 0.0290
= 16.70%
Therefore, new cost of equity would be 16.70%.
Answer:
b. There can be no cash inflow or cash outflow without a corresponding change in a non-cash account.
Explanation:
There is only one cash account and no other account, if there is an inflow, there will be some non cash account related as for example, cash received from customers as is non cash account, accounts receivables.
Also in case of cash outflow, there will be some non cash account responsible for such transactions. As for example, payment for acquiring land, land is fixed asset which is a non cash account.
All other statements are incorrect.
Answer:
Cash Book Adjustment
Explanation:
When a person is reconciling a checking account and notices that the balance in the checkbook does not match the balance on the statement from the bank, the action that is appropriate for the person to take first is to adjust the cash book balance.
Adjustment of cashbook is done by updating the cash book with all the entries in the bank statement that is not captured in the cash book. This includes the bank charges and standing orders. When this has been done then comparison becomes easier between the bank statement and the cash book checking account.
The other procedure will be to add unpresented checks and less uncredited checks
