Answer:
$92,400
Explanation:
Coolwear incorporation has a balance in its prepaid insurance account of $48,400
In 2018, $86,000 was paid for insurance
At the end of 2018, the balance was $42,000 after adjusting entries were recorded
Therefore the insurance expense for 2018 can be calculated as follows
= $48,400 + $86,000-$42,000
= $134,400-$42,000
= $92,400
Hence the insurance expense for 2018 is $92,400
Answer:
E. The corporate valuation model discounts free cash flows by the required return on equity.
Answer:
Explanation:
The $10,000 is the face value of the bond. Using a financial calculator, input the following to calculate the price at a year before maturity; i.e. at year 9;
Time to maturity; N = 10 - 9 = 1
Annual interest rate; I/Y = 9%
Annual coupon payment; PMT = 0
Face value of the bond; FV = 10,000
then compute present value ; CPT PV = $9,174.31
Therefore, you will pay less than $10,000 for the bond and the price would be as above $9,174.31
Answer:
A consumer co-operative
Explanation:
A consumer co-operative is a type of retail business owned by an association of consumers. The consumers who form the venture manage it and share in its profits. The main objective of starting a consumer co-operative is to eliminate intermediaries.
A consumer co-operative has the benefit of economies of scale as it purchases in bulk. It can afford to offer its members more competitive prices. Members of the co-operative share profits in the ratio of capital contribution. Their liability is limited to share contribution. Membership is voluntary, and they usually transact on a cash basis.
Based on the economic and financial analysis, the main reason for considering <u>nonconstant growth</u> in dividends is to allow for "<u>Supernormal</u>" growth rates over "<u>some finite length of time</u>."
This is because, in nonconstant growth, the growth rate cannot surpass the mandatory return indefinitely.
However, there is the probability that it could do so for some number of years.
Also, it should be noted that in this situation, the value of the stock equates to the present value of all the future dividends.
Hence, in this case, it is concluded that the correct answer is <u>supernormal</u> and <u>some finite length of time</u>.
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