Balance Sheet
Assets
Current Assets
Cash 37200
Accounts Receivable 36300
Less: Allowance for Doubtful Accounts (5000) [Computation: 36300-31300)
Supplies 3600
Total Current Assets 72100
Property, Plant, and Equipment
Land 17600
Building 75100
Equipment 47200
Total Property, Plant, and Equipment 139900
Total Assets $212000
Liabilities
Long term Liabilities
Mortagage Payable 19900
Owner's Equity
Terry, Capital 55200
Nick, Capital 72800
Frank, Capital 64100
Total Owner's Equity 192100
Total Liabilities and Owner's Equity $212000
Answer: a. $13.89
Explanation:
The relevant model/ formula to use is the Gordon Growth model which is;
Value of stock = Next dividend / (required return - growth rate)
The dividend is constant so the growth rate is 0%.
Required return will be the discount rate.
Value of stock = 2.25 / ( 16.2% - 0%)
= $13.89
Answer:
larger vehicles with larger motors
Explanation:
Rising oil prices will cause consumers to reduce consumption for larger vehicles with larger engines. This is because a vehicle with large engine consumes more oil-derived, increasing the cost of use of the vehicle. That is, it will be more costly for the consumer.
Answer:
The indifference point is 10,000 units.
Explanation:
Giving the following information:
Two vendors have presented proposals. The fixed costs are $ 50,000 for proposal A and $ 70,000 for proposal B. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 20.00.
Proposal A= 50,000 + 12*x
Proposal B= 70,000 + 10*x
70,000 + 10x= 50,000 + 12x
20000= 2x
10000= x
The indifference point is 10,000 units.