Answer:
Company B (transaction d)
Explanation:
present value of transaction a (company D) = $1,100,000 / 1.08 = $1,018,519
present value of transaction b (company C) = $45,000 x 21.21211 (PV annuity factor, 2.4%, 30 periods) = $954,545
present value of transaction c (company A) = $1,000,000
present value of transaction d (company B) = $100,000 x 10.52141 (PV annuity factor, 4.8%, 150 periods) = $1,052,141
Answer: False
It seems very unlikely that a blind person would go door to door to ask for help.
Answer:
b.to evaluate the company's stock performance
Explanation:
Evaluating a company stock performance would interest investors more than the managers of the company. Investors are profits driven. Their primary concern is to predict the future price of a stock as accurately as possible and profit from the price movement.
Managers are concerned with the profitability and long term growth of the company. They use managerial information to understand the current state and make better plans for the future. Managers use managerial reports to identify areas that need cost-cutting to maximize the profits.
Answer:
The price per share of equity is $37.083
Explanation:
The first capital structure is purely equity based and Guld Shores will sell 300000 shares at price x to raise the needed capital.
The second structure is a mixed or leveraged structure where both debt and equity components are involved. The capital that needds to be raised remains constant.
Gulf has to give up 300000 - 252000 = 48000 shares and raise 1.78 million dollars from debt. We assumed that the amount that Gulf will raise is the ame from both th structures. Then 48000 shares at price x are equal to $1.78 million debt.
So, Price per share of equity is,
1,780,000 = 48000x
1780000 / 48000 = x
x or price per share = $37.083
Answer:
On the balance sheet, the inventory would appear as:
Inventory $248,000
Explanation:
In the notes to the accounts, the method of determining the cost and the method of valuing the inventory would be disclosed. It is not disclosed on the balance sheet, but on the notes to the accounts.
It would make the balance sheet appear unorganized to include details that should have been included in the notes. The presentation of information is very important in order to ensure that those reading the information understand it. Understanding is not aided by including information that could be displayed elsewhere.
