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Kazeer [188]
3 years ago
5

Neal Enterprises common stock is currently priced at $36.80 a share. The company is expected to pay $1.20 per share next month a

s their annual dividend. The dividends have been increasing by 2 percent annually and are expected to continue doing so. What is the cost of equity for Neal Enterprises
Business
1 answer:
yanalaym [24]3 years ago
5 0

Answer:

The cost of equity for Neal Enterprises is 5%

Explanation:

In order to calculate the cost of equity for Neal Enterprises we would have to make the following calculation:

cost of equity=((Do(1+g)/Po)+g

According to givn data we have the following:

Do=$1.20

Po=$36.80

g=2%

cost of equity=((1.20(1+0.02)/36.80-1.20)+0.02

cost of equity=((1.20(1+0.02)/35.60)+0.02

cost of equity=0.05

The cost of equity for Neal Enterprises is 5%

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Texarkana Company exchanged equipment that cost $85,000 and has accumulated depreciation of $29,800 and a fair value of $60,000.
viva [34]

Answer:

$4,800

Explanation:

Data provided in the question:

Cost = $66,000

Accumulated depreciation = $30,000

Book value = Cost - Accumulated depreciation

= $66,000 - $30,000

= $36,000

Now,

Fair value = $48,000 + $12,000

= $60,000

Thus,

Gain = $60,000 - $36,000

= $24,000

Therefore,

Gain to be recognized = $24,000 × [ 12,000 ÷ 60,000 ]

= $4,800

4 0
3 years ago
On August 1, 2021, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate comp
andrey2020 [161]

Answer:

$(123,000) + $(29,000)= $(152,000)

Explanation:

Discontinued operations are those operations of segment of a company where a formal plan exists to eliminate it from the company.

The revenues, gains, expenses, and losses pertaining to the discounting business segment are removed from the company's continuing operations and are reported separately on the company's income statement.

Hence, operating loss of $ 123,000 and impairment loss of $ 29,000 will separately be reported on income statement of the company.

Future estimated operating losses do not become part of the income statement.

8 0
3 years ago
A formula that calculates the total dollar value of all goods and services produced in a nation and all the goods and services p
Lina20 [59]

Answer:

Gross National Product (GNP)

Explanation:

According to Investopedia, "the Gross National Product is the value of a nation's finished domestic goods and services during a specific time period".

*Note that the GNP should NOT be confused with the GDP (Gross Domestic Product). The GDP only accounts for the value of goods and services produced within a nation's borders, while the GNP also adds the value of services produced by that country's employees and companies in other nations.

7 0
3 years ago
Why is it important for a partnership agreement to spell out managerial responsibilities and financial arrangements?
alina1380 [7]
It is important so no one in the agreement screws the other person over
5 0
3 years ago
Tania, a management accountant in a cosmetics company, is asked by her manager to calculate the profit or loss earned by the com
oee [108]

Answer:

a. subtract the company's expenses from its revenue.

Explanation:

For computing the profit or loss we simply deduct all the expenses incurred from the revenue earned.

If the revenue is more than the expenses than it would profit to the company

And, if the revenue is less than the expenses than it would be loss suffered by the company

In mathematically,

Net income = Total revenues earned - all expenses incurred

And, the net loss = All expenses incurred - total revenues earned

Hence, the first option is correct

6 0
3 years ago
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