Answer:
Depends on the person but probably not
Explanation:
Answer:
D. debit Unearned Rent Revenue, $4720; credit Rent Revenue, $4720.
Explanation:
When the Cash was received for 6 month`s Rent the entry was :
Debit : Cash $28320
Credit : Unearned Rent Revenue $28320
At 31 July when 1 month`s rent expires the entry will be :
Debit : Unearned Rent Revenue (1/6 x $28,320) $4,720
Credit : Rent Revenue $4,720
thus
We reverse the liability - Unearned Rent Revenue and recognize Revenue for the month expired.
Answer:
The agency collected $ 622.5.
Explanation:
Since HRH Collection Agency keeps a collection fee of 25% of any amounts collected, to determine how much did the agency collect on a bad debt if the agency forwarded $ 2490 to a client, the following calculation must be performed:
2490 x 0.25 = X
622.5 = X
Therefore, the agency collected $ 622.5.
Answer:
Reject,
Explanation:
When calculating the IRR, I got 16.6%, which is less than the wacc. This means that the rate of return is lower than what it costs 18% wacc.
I think the answer should be reject, less.
Answer:
Cost of equity = 10.9%
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em><em> </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
D0× (1+g)/Po × (1-F) + g
Do - dividend in the following year, K- requited rate of return , g- growth rate , F= Floatation cost in %
DATA:
D0- 3.68
g- 5%
P=67
K- ?
Po×(1-F)= 67-3.68=$63.32
Ke = 3.68× 1.05/ 63.32 + 0.05 =0.109
Cost of equity = 0.109× 100= 10.9%
Cost of equity = 10.9%
