Answer:
Cost of retained earnings = 0.13
Explanation:
given data
(D1) = $1.80
current price = $36
growth rate = 9 percent
solution
we get here Cost of retained earnings (Ke) that is express as
Cost of retained earnings = ( D1 ÷ P ) + g ................1
here P is price and g is growth rate
put here value and we get
Cost of retained earnings = (1.80 ÷ 36 ) + 0.08
Cost of retained earnings = 0.13
Answer: $3.46
Explanation:
Given the following :
Current share price (P0) = $90 per share
Required return on stock= 8%
total return on the stock is evenly divided between a capital gains yield and a dividend yield ;
Therefore, Required return on stock= 8% ;
4% capital gain yield + 4% Dividend yield = 8%
Growth rate = 4% = 4/ 100 = 0.04
D1 = D0(1 + g)
D1 = value of next year's Dividend
D0 = current Dividend yield
g = Constant growth rate
D1 = current stock price * g
D1 = 90 * 0.04 = 3.6
D1 = D0(1 + g)
D0 = D1 / (1+g)
D0 = 3.6 / (1+ 0.04)
D0 = 3.6 / 1.04
D0 = $3.46
Confirm accounts receivable ending balances and sales terms, such as right of return and consignment arrangements.-- Existence and accuracy
What is an Accounts Receivable Confirmation?
When an auditor is examining the accounting records of a client company, a primary technique for verifying the existence of accounts receivable is to confirm them with the company's customers. The auditor does so with an accounts receivable confirmation
What does it mean to confirm account?
Account verification is the process of verifying that a new or existing account is owned and operated by a specified real individual or organization. A number of websites, for example social media websites, offer account verification services.
Learn more about Confirm account receivable:
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Answer:
The increase in earnings is $136511.56
Explanation:
Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:
Profit on lease=present value of lease payments-costs
=$274149-$156000
=$118149
However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:
Interest=($274149-$44617)*8%
=$18362.56
Please note that interest is charged after lease payment as lease payment is made in advance not in arrears.
Conclusively, the increase in earnings is $118149+$18362.56
That is $136511.56
Answer:
910.18
Explanation:
After Chin's down payment the amount borrowed is ...
(1 - 20%)($180,000) = 0.80·$180,000 = $144,000
The amount of the payment is given by the amortization formula ...
A = P(r/n)/(1 -(1 +r/n)^(-nt))
for P borrowed at rate r for t years, compounded n times per year.
A = 144000(0.065/12)/(1 -(1 +.065/12)^(-12·30)) = 910.18
The monthly loan payments will be 910.18.
