Answer:
The situation that would not require the long-term liabilities to be reported as current liabilities on the balance sheet is :"The company intends to refinance the debt and did so prior to issuance of the financial statements".
Explanation:
Analyzing all the options given above:
- The long-term debt matures within the upcoming year- which means that the liability payable is less than one year, therefore, it is a current liability.
- The creditor has the right to demand payment due to a contractual violation- which means that the money is immediately payable. Therefore, it refers to the current liability.
- The long term debt is callable by the creditor - which means it is also to be recorded as a current liability.
The above three statements clearly explain that they are recorded as a current liability, but when the company intends to refinance the debt and did so prior to issuance of the financial statements does not record the current liability.
"Limited liability corporation" is the one among the following choices given in the question that <span>would suit their needs best. The correct option among all the options that are given in the question is the second option or option "B". I hope that this answer has actually come to your help.</span>
Answer:
Price per share = $78.75
Explanation:
<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.</em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Where Do- Dividend now, g- growth rate, k- required rate of return(cost of equity)
<em>Note Do (1+g) represents the expected dividend in the first year</em>
DATA:
Do (1+g) = 3.15
g= 8%
k= 12%
Price per share = 3.15/(0.12- 0.08) = $78.75
Price per share = $78.75
Answer and Explanation:
The SoX sarbanes oxley act of 2002 was enacted to address company fraud that was exemplary of Eron and worldcom and bring back the confidence held in the financial market
It was meant to increase the effectiveness of internal control in companies in keeping accounting records or financial reports reliable and fraud-proof. The SOX act increased the independence of company auditors making their reports more reliable as they didn't have to compromise because they were dependent on top managers. In addition top managers were held responsible for any fraud in accounting statements and so were to certify the reliability of reports released to the public
