When posting in accounting does your expense accounts go in the debit or credit balance ?

What are the fundamentals of a wealthy life?

Alenkinab [10]

Answer:

Avoiding debt.
Budgeting properly.
Setting short-term and long-term goals.
Investing in yourself.
Diversifying your assets.
An understanding of risk and reward

8 0

4 years ago

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Suppose Stark Ltd. just issued a dividend of $2.33 per share on its common stock. The company paid dividends of $2.00, $2.08, $2

klasskru [66]

Answer:

arithmetic average growth rate = (4% + 3.37% + 5.12% + 3.1%) / 4 = 3.9%

we need to find the required rate or return (RRR) in the following formula:

stock price = expected dividend / (RRR - growth rate)

expected dividend = $2.33 x 1.039 = $2.42
stock price = $55
growth rate = 0.039

55 = 2.42 / (RRR - 0.039)

RRR - 0.039 = 2.42 / 55 = 0.044

RRR = 0.083 = 8.3%

geometric average growth rate = [(1.04 x 1.0337 x 1.0512 x 1.031)¹/⁴] - 1 = 3.89%

again we need to find the required rate or return (RRR) in the following formula:

stock price = expected dividend / (RRR - growth rate)

expected dividend = $2.33 x 1.0389 = $2.42
stock price = $55
growth rate = 0.0389

55 = 2.42 / (RRR - 0.0389)

RRR - 0.0389 = 2.42 / 55 = 0.044

RRR = 0.0829 = 8.29%

5 0

3 years ago

You own a house that you rent for $1,675 per month. The maintenance expenses on the house average $315 per month. The house cost

Trava [24]

Answer:

The value that should be placed when analyzing the option of using the house as a professional office is $242,880

Explanation:

In calculating cash flow of a project, opportunity cost is very important hence be made part of the cash flow

Incremental cash flow = Appraisal on the house - Real estate fees

=$264,000 - $21,120

= $242,880

7 0

3 years ago

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1. Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 8% interest

Ierofanga [76]

Answer:

1. Down payment = $15,000

2. The existing mortgage (loan) was for $135,000

3. The current monthly payment on the existing mortgage is $990.58

4. The total interest over the life of the existing loan = $221,609.58

6. The amount of the original loan paid off is $22,319.

7. Total amount paid to the loan company over the last 10 years is $258,928.58 ($243,928.58 + $15,000)

8. Total interest paid over the last 10 years is $221,609.58

9. The equity in the home is $67,319 ($180,000 - $112,681)

10. The new monthly payments will be $675.58

11. Saving each month because of the lower monthly payment is $315 ($990.58 - $675.58)

12. Total Interest = $352,137.21 ($221,609.58 + $130,527.63)

13. It does not make sense to refinance because what is saved per month cannot compare with the additional interest expense to be incurred for prolonging the payments.

Explanation:

a) Data and Calculations:

1. Cost of a home = $150,000

10% down payment = $15,000

Existing Mortgage = $135,000 ($150,000 - $15,000)

Home Price 150000

Down Payment 10 %

Loan Term 30 years

Interest Rate 8%

House Price $150,000.00

Loan Amount $135,000.00

Down Payment $15,000.00

Total of 360 (30 years * 12)

Mortgage Payments $356,609.58

Total Interest $221,609.58

Ten years after, the loan balance has been reduced by $22,319 ($135,000 - $112,682)

Refinancing calculations:

Home Price 112681

Down Payment 0 %

Loan Term 30 years

Interest Rate 6

Monthly Pay: $675.58 Monthly

Total Mortgage Payment $243,208.63

Total Out-of-Pocket $243,208.63

Total of 360 Mortgage Payments $243,208.63

Total Interest $130,527.63

4 0

3 years ago

GN Corp. and BC Inc. are two competing firms in the same industry. GN Corp.'s tangible assets are valued at $15 billion and its

Inessa05 [86]

Answer: It is likely that BC Inc. is better enabled than GN Corp to gain and sustain a competitive advantage.

Explanation: Since BC Inc.'s intangible assets are valued at $45 billion more than GN corp, hence they are better enabled to gain and sustain competitive advantage.

6 0

3 years ago