Answer:
6,000 units
Explanation:
The beginning inventory units are calculated below
We know
Number of units produced = Budgeted units sold + ending inventory units - beginning inventory units
35,000 units = 32,000 units + 9,000 units - beginning inventory units
35,000 units = 41,000 units - beginning inventory units
So, the beginning inventory units would be
= 41,000 units - 35,000 units
= 6,000 units
Answer:
$74.58
Explanation:
The price of share of the Bretton Inc in the given question shall be the present value of all the dividends associated with this share in the future years.
Present value of year 1 dividend=3.31(1+13%)^-1=$2.93
(3.15*1.05)
Present value of year 2 dividend=3.48(1+13%)^-2=$2.73
(3.31*1.05)
Present value of year 3 dividend=3.65(1+13%)^-3=$2.53
(3.48*1.05)
Present value of year 4 dividend=3.83(1+11%)^-4=$2.52
(3.65*1.05)
Present value of year 5 dividend=4.02(1+11%)^-5=$2.39
(3.83*1.05)
Present value of year 6 dividend=4.22(1+11%)^-6=$2.26
(4.02*1.05)
Present value of all the cash flows after 6 year=$59.22
[4.22(1+5%)/(9%-5%)]*(1+11%)^-6
Price of share $74.58
Answer:
Effective interest on June 30 on a 6% $60 million bond at 7% effective rate is $1,950,778
The interest is treated in the books of account thus:
Debit interest expense $1,950,778
Credit Bond account $1,950,778
Explanation:
The effective interest is computed using the below formula
Amount x Effective Rate (%) = Interest Expense
Amount=$55,736,520
Effective rate =7%/2 =3.5% semi-annually
Interest expense=$55,736,520*3.5%
Interest expense=$1,950,778
Answer: 0.58
Explanation:
Given the parameters in the question, Beta can be solved by the following formula;
= Correlation with market * ( Standard deviation of stock / Standard deviation of market)
= 0.53 * (32%/29%)
= 0.58
