Answer:
$2.4 million
Explanation:
The total assets of the firm are funded by both debt and equity,hence, the total assets is the same as total equity plus total debt based on the accounting equation formula below:
total assets=equity+debt
tota assets=$4 million
equity=unknown
debt can be derived using the debt ratio as shown thus:
debt ratio=debt/total assets
debt ratio=40%
debt=unknown
total assets=$4 million
40%=debt/$ 4 million
debt=40%*$4 million
debt=$1.6 million
$4 million=equity+$1.6 million
equity=$4 million-$1.6 million
equity =$2.4 million
Answer:
$2.4302 per share
Explanation:
The computation of the capital gain in dollars is shown below:
Price at the end of third year - price of share now
where,
Price at end of 3 year = Dividend year 4 ÷ (0 .12 - .035)
= $2.10656 ÷ 0.085
= $24.7831 per share
The Dividend of year 4 is come from
= $1.90 × (1 + .035 )^3
= $1.90 × (1.035)^3
= $2.10656
And,
Price at end of 3 year is
= Dividend at year 4 ÷ ( .12 - .035)
= $2.10656 ÷ .085
= $24.7831 per share
And,
Price of share now is
= $1.90 ÷ (.12 -.035)
= $1.90 ÷ .085
= $22.3529
So,
Capital gain is
= $24.7831 - $22.3529
= $2.4302 per share
Answer:
deficit.
Explanation:
The term deficit describes the scenario where government expenditures exceed the projected revenues. It is when the government intends to spend more money than it can raise. Therefore, a deficit is when the government expenses are more than the revenue collected.
Defic contrasts with a surplus, which is a situation where revenues exceed expenses. The government borrows from the domestic and international markets to cover the shortfall associated with a
Answer:
c. $4,025,200
Explanation:
The computation of the total cash receipts from sales and collections in April month is shown below:
= April sales × cash sales percentage + April sales × credit sales percentage × collection month percentage + March sales credit sales percentage × Following month collection percentage
= $4,000,000 ×30% + $4,000,000 × 70% × 40% + $4,200,000 × 70% × 58%
= $1,200,000 + $1,120,000 + $1,705,200
= $4,025,200
Since cash sales are 30% , so the credit sales would be 70%
