Answer: Financial Forecast
Explanation:
Forecast is a prediction of events that would happen in the future based on evidence of what's seen now or an assumption on projections.
While financial forecast is predicting how well a business will perform in the future through estimating future financial outcomes.
I would advise Mustafa to seek experts ideas on financial forecast for a new business and that would help him project his expectations
Answer: Option (C) is correct.
Explanation:
Correct option: A $50 billion decrease in government spending would be the most contractionary fiscal policy.
A. Increase the taxes by $40 billion is also a contractionary fiscal policy but it doesn't have a greater impact than decreasing the government spending by $50 billion.
B. It is an expansionary fiscal policy.
D. There are both expansionary fiscal policy by decreasing taxes by $10 billion and contractionary fiscal policy by decreasing government spending by $40 billion. But it doesn't have much impact as the option (C) is having.
Therefore, Option (C) is having the most contractionary fiscal policy.
Answer:
There is not gain in this operation so the answer is $0
Explanation:
There are some journal entries that needs to be done to have a full picture of the statement
* Purchase
Fixed Assets 690.000
Cash 690.000
* Monthly depreciation
Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis
Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400
Then calculate the yearly depreciation
Yearly depreciation = ((amount to be depreciated/useful life) * years used) =
(641.400/10*8) = 513.120
then the journal entry to record the monthly depreciation for 8 years is
Depreciation expense 513.120
Acc Depreciation 513.120
* Post the Journal Entry to record the sell of FA
You have to reverse the Acc Depreciation and credit the FA
Cash 152.500
Fixed assets 690.000
Acc depreciation 513.120
Loss on sale of FA 24.380
Answer:
12.75 %
Explanation:
Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.
Cost of Capital = E/V × Ke + D/V × Kd
Where,
E/V = Market Weight of Equity
= 0.55
Ke = Cost of Equity
= 15%
D/E = Market Weight of Debt
= 0.45
Kd = Cost of Debt
= 10%
Therefore,
Cost of Capital = 0.55 × 15% + 0.45 × 10%
= 12.75 %
