Answer:
Question a:
The non-controlling interest of Rockne´s 2018 net income is $111,000.- calculated by taking 30% of Rockne´s net income of $370,000.-
Question B:
There are 3 entries required to eliminate te sale of goods form rochne to doone.
The first entry eliminates the sales recorded by rockne against te inventory or cost of goods sold by recorded by doone. To consider, the 60% of the purchases went trhough cost of good sol d and 40% of the purchases remain in inventory until the following year. Here is the engru:
Debit/sales/$530
Credit/COGS/ ($318) 60%
Credit inventory ($212) 40%
The next entry has to do with the amount of inventory that remained from the last intercompany transaction. This is caclulated usin 40% of 2017 sales, which were $430. So:
Debit inventory $172
Credit Cogs ($172)
The last part is to eliminate the recievable on the book of rockne when they made te sale
Debit Payable $530
Credit receivable ($530)
Answer:
The correct option is B,$29.05
Explanation:
The required rate of return is can be computed using Miller and Modgiliani CAPM formula below:
Ke=Rf+Beta*Mrp
Ke is the cost of equity which is unknown
Rf is the risk free rate of 3.00%
Mrp is the market risk premium of 5.50%
Beta is 1.2
Ke=3.00%+(1.2*5.50%)
Ke =9.6%
The current price of the common stock is the present value of dividends payment and stock price(terminal value) as shown below discounted with Ke of 9.6%
Year 1 $1.25*(1+25%)=$1.56
*1/(1+9.6%)^1=$1.43
Year 2 $1.56*(1+25%)=$1.95
*1/(1+9.6%)^2=$1.63
Year 3 $1.95*(1+25%)=$2.44
*1/(1+9.6%)^3=$1.85
Year 4 $2.44*(1+25%)=$3.05
*1/(1+9.6%)^4=$2.11
Terminal value=year 4 dividend/ke=$3.05/9.6%=$31.79*1/(1+9.6%)^4=$22.03
Total present values=$1.43
+$1.63+$1.85
+$2.11
+$22.03=$29.05
Answer:
Option (B) is correct.
Explanation:
Given that,
Issued preferred stock outstanding that pays dividend per year = $7.75
Current selling price = $68.19 per share
Required return = (Annual dividend ÷ Current price) × 100
= ($7.75 ÷ $68.19) × 100
= 11.37% (Approx)
Therefore, the required return is 11.37% if this issue currently sells for $68.19 per share.
Answer: $135,950
Explanation:
Given the following
List price = $125,000
2% discount if payment is made within 10 days
Sales tax = $6,250
Installation charges = $2,200
Concrete slab = $5,000
Total sales = [(100 - 2)% × list price] +sales tax + installation charges + concrete slab
Total sales =( 98% × 125,000) + 6250 + 2200 + 5000
Total sales = $(122,500 + 6250 + 2200 + 5000)
Total sales = $135,950
<span>Your debt to income ratio determines how likely you are able to make your payments. When a high percentage of your available credit is been used, this can indicate that your money is overextended, and you may be more likely to make late and or missed payments.</span>
