Answer:
Total after-tax cash flow= $6000
Explanation:
Giving the following information:
Equipment value= $30,000 in December 20x1.
Income= $10,000 p
Cost= $2,000 per year.
Depreciation= $3,000.
t=0,40
Cash flow has the following structure:
Income (+)
Cost (-)
Depreciation (-)
=EBIT
TAX (-)
Depreciation (+)
Total
Income= 10000
Costs= -2000
Depreciation= -3000
EBIT= 5000
Tax= -2000
Depreciation= 3000
Total= 6000
Answer: A. She believes the company has become riskier, and therefore increases her required rate of return for the stock.
Explanation:
The formula for the Constant dividend growth model of valuing stock is:
<em>= Next dividend / (Required return - growth rate)</em>
From the formula above, one can tell that if the required return is higher, it would result in a lower value for stock because it would divide the numerator more.
If the analyst believes that the company is riskier and increases the required return, the value would therefore reduce if other measures are kept constant.
Answer:
It is Conciseness (D)
Explanation:
Comparability : the financial information produced should be capable of being compared over time and with similar information about other entities.
Timeliness : Financial information should be provided within a time scale suitable for the users decision making purposes.
Reliability : Information contained in the financial reports should inspired confidence in their users which they can rely on in making relevant decision.
Conciseness : This is not part of financial information characteristics.
Answer:
Option A.
Explanation:
A flyer refers to a type of paper advertisement, which is normally used for wide distribution and it is spread by either handing it out manually in a public place, plastered on walls, or sent through the mail in order to create awareness and offer information about a business on a large scale.
In order for a flyer to be effective, it should have the following qualities:
1. A design that is simple and unique, with a language that is easy to understand.
2. Good use of the space on the flyer.
3. Relevant details about the business must be included.
4. Use of correct spelling and grammar, which must not be misleading.
From the explanations above, we can see that the correct option is A.
