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4 years ago

The minimum return that must be earned on a project in order to leave the firm's value unchanged is ________.

1 answer:

3 0

<span>The minimum return that must be earned on a project in order to leave the firm's value unchanged is: cost of capital.
This minimum return will be used for the firm to continue its previous operation without making any changes such as cutting out their employees or selling some of its assets</span>

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The first Photography Club dinner that was paid for in advance concluded at 10:00 pm on the last evening of the month. The Club'

suter [353]

Unearned revenue I would imagine

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3 years ago

Prepaid Rent. On September 1 of the current year, the company prepaid $44,400 for two years of rent for facilities being occupie

bezimeni [28]

Explanation:

The computation is shown below:

a. The current account balance equal to $44,400

b. The current account balance equal to

Since the company prepaid rent for two years is $44,400 but we have to compute four four months i.e from September 1 to December 31

We assume the books are closed on December 31

So, the current account balance is

= $44,400 - $7,400

= $37,000

The $7,400 is come from

= $44,400 × 4 months ÷ 24 months

= $7,400

c. And, the adjusting entry is

Rent expense A/c Dr $7,400

To Prepaid rent A/c $7,400

(Being rent expense is recorded)

8 0

3 years ago

Last year Ann Arbor Corp had $250,000 of assets (which equals total invested capital), $305,000 of sales, $20,000 of net income,

Firdavs [7]

Answer:

8.32%

Explanation:

The computation of cost reduction improve the ROE is shown below:-

For computing the increase in ROE first we need to follow some steps which is here below:-

Debt = capital × Debt

= $250,000 × 37.5%

= $93,750

Equity = Assets - Debt

= $250,000 - $93,750

= $156,250

New ROE = New Net income ÷ Equity

= $33,000 ÷ $156,250

= 21.12%

Old ROE = Old Net income ÷ Equity

= $20,000 ÷ $156,250

= 12.8%

Increase in ROE = New ROE- Old ROE

= 21.12% - 12.8%

= 8.32%

8 0

3 years ago

In what situations is top-down planning likely to be superior to bottom-up emergent strategy development

Marianna [84]

Answer is given below :

Explanation:

Both strategies aim to convey and process knowledge between and within the organization. The top-down approach for sub-categories to gain insights at the senior management level breaks down a system.
This is a great tool to help managers identify areas of improvement using quota and monthly matrix goals. There are flaws in this strategy, employees are not involved in the process and managers do not understand the full impact of the changes made.
Morality can be affected because this strategy is motivated by fear and encouragement. The bottom line is that in some cases it is more complex, although employees feel motivated to provide more authority and quality work. The information is processed to a minimum and communicated to management.
This may help in some areas because administrators may not fully understand the process. I should use the military as an example for a top down strategy.
It works on the battlefield when there is no time to discuss or motivate employees. Top down is used when there is a slight change in environmental factors.

5 0

3 years ago

A.Red Company has excess cash to invest and pays Ş 50.000 to buy Ş 50.0000 face value, % 5 five-year B Company’s bonds July 1, 2

likoan [24]

Answer:

Dr Bond investment $50,000

Cr cash $50,000

Dr cash $1,250

Cr interest revenue $1,250

Dr cash $50,000

cr bond investment $50,000

Explanation:

On July 1 2019,Red company would have parted with cash of $50,000 which means that cash account should be credited with $50,000 while bond investment account is debited with same amount

On receipt of first interest payment of $1,250 (5%*$50,000*1/2) cash is debited with $1,250 while interest revenue is credited with the same amount.

Upon receipt of face value at redemption,the journal entry would be opposite of the initial one

4 0

3 years ago