Answer: Raise additional capital by selling fixed Interest rate long term bonds
Explanation:
A firm can finance it's operations through equity or debts, the art of a firm financing it's operations through debts like bonds etc it's refered to as financial leverage.
A firm cannot increase it's financial leverage by selling common stock, neither through buying stock from his cash and financial leverage does relate with asset turnover.
The answers are decrease and increase in that order.
Answer:
$64,400
Explanation:
The amount of in the income summary that would be closed to retained earnings is the fees earned of $187,000 less the depreciation expense of $12,000,wages expense of $71,400,interest expense of $3,300,insurance expense of $11,700 as well as the rent expense of $24,200 as computed thus:
net income from income summary=$187,000-$12,000-$71,400-$3,300-$11,700-$24,200=$64400
Retained earnings closing balance=$112,000-$32,000+$64400
=$ 144,400.00
Answer and Explanation:
The classification is as follows
a. In the callable, the corporation who issued could retired the stock by payoff the mentioned price
b. In the convertible, the stockholders could able to exchange for the common stock shares
c. In the cumulative, the stockholders should received the current as well as the past dividends prior to the common stockholders
d. In the non-cumulative, the stockholders should lose the dividend that not declared in the present year
e. In the non-participating, the stockholders should not received any dividend that more than the stated rate
f. In the participating, the stockholder should received any dividend that more than the stated rate
Jan. 1, 2013:
Initial investment = (100 shares)*($30/share) = $3,000.
End of 2013:
Dividend collected = ($2/share)*(100 shares) = $200
End of 2014:
Dividend collected = ($3/share)*(100 shares) = $300
End of 2015:
Dividend collected = ($4/share)*(100 shares) = $400
Returns::
From sales of 100 shares = ($33/share)*(100 shares) = $3,300
From dividends = 200 + 300 + 400 = $900
Total returns = 3,300 + 900 = $4,200
Realized returns = Total returns - Initial inestment
= 4200 - 3000
= $1,200
Answer: $1,200
