The currency would deflate, though this never happens
Compared to commercial banks, finance companies usually signal solvency and safety concerns by holding higher capital-asset ratio
Answer:
The answer is C) $7,970.
Explanation:
We have 04 reconciling items as below:
- Outstanding checks $800: this amount was already recorded in the Cash account of the company once the check was written; thus, the Cash ending balance has already reflected this amount.
- Deposits in transit $700: this amount was already recorded in the Cash or Cash-equivalent account of the company once the deposit was made; thus, the Cash ending balance has already reflected this amount.
- Bank service charge $30: fees paid to banking activities and are deducted without informing to the company. Thus, this deduction in cash is not reflected in the Cash account.
- NSF check $500: this was recorded as the increase in Cash account by the company once the check was written by the person/entity to the company. However, the writer's account balance was not sufficient to honor this check amount to the company; thus Cash Account at the end of the period should reduced by $500. Instead, this $500 may be recorded in Account Receivable account.
Thus, the adjusted cash balance = 8,500 - 30 - 500 = $7,970.
Answer:
a. 9,50%
b. $47.09
Explanation:
a) Discount rate on the stock
Average Risk Premium of Stock = 7.60%
Current risk-free rate = 1.60%
Discount Rate = 7.60% + 1.90%
Discount Rate = 9.50%
b) Current Price = ($41 + $2) / (1 + 9.50%)^1
Current Price = $43 / (1.0950)^1
Current Price = $43 / (1.0950)^1
Current Price = $43 / 0.91324
Current Price = $47.0851035872278
Current Price = $47.09
Note: Stock price equals the present value of cash flows for a 1-year horizon (Fv + Dividend)/(1+ Discount rate)^n
Answer:
is this another one or different
