<h2>Answer</h2>
D) Customer demand for the product
<h3>Explanation</h3>
For a business opportunity to prosper and grow ahead, it is imperative that the offered product or service has actual demand present. If the demand is present, the sales will be automatically achieved. This will result in higher sales and therefore more generation of profits in the future. Without optimal demand present in the economy, it is not worth putting time and efforts in a business.
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Answer:
$0
Explanation:
Scott Company must record the warranty expense and liability regarding the products sold during the years that they occur. For example, the following journal entry must be made to record the warranty expense for year 1:
Dr Warranty expense 25,000
Cr Warranty liability 25,000
During year 2, they will record the warranty expense for that year:
Dr Warranty expense 20,000
Cr Warranty liability 20,000
That means that during year 3, the only warranty expense recorded will be the one related to the goods sold during that year.
Answer:
Cost of equity= 10,50%
Explanation:
The cost of equity is the return a company requires to decide if an iThe cost of equity is the return a company requires to decide if an investment meets capital return requirements. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.
Cost of equity= (D1/P0)+g
D1= next year dividend (D0*
P0=actual price
g= growth rate of dividends
In this exercise:
D1=D0*(1+g)=0,90*1,07=$0,963
P0=$27,50
g=0,07
Cost of equity= 0,963/27,5+0,07=0,1051=10,50%
The answers are the following:
a.
Brandon:
$7,000 + [($10,000/4)×3¿= $8,500
Ryan:
$7,000 + [($10,000/4)×1¿= $7,500
b.
Brandon $7,000
Ryan <span>$7,000</span>
