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3 years ago

Why might a business owner prefer to raise capital through a loan rather than through selling shares to an investor ?

Business

1 answer:

MArishka [77]3 years ago

7 0

Answer:

Shareholders can have control over business decisions. With a loan, all the owner owes is principle and interest

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During 2020, Sarasota Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sarasota for

vfiekz [6]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

Gross profit = Sales - Cost of goods sold

= (440 x 90 + 220 x 80 + 264 x 50) - (440 x 56.7 + 220 x 50.4 + 264 x 31.5)

= (39,600 + 17,600 + 13,200) - (24,948 + 11,088 + 8,316)

= 70,400 - 44,352

= $26,048

Ending inventory schedule attached in the excel archive

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Download xlsx

8 0

3 years ago

The constant dividend growth model: a. is more complex than the differential growth model. b. requires the growth period be limi

Finger [1]

Answer:

The correct answer is letter "D": can be used to compute a stock price at any point in time.

Explanation:

The Gordon Growth Model, also known as the Constant Dividend Growth Model, is used to measure the value of the stock at any point in time based on the projected future dividends of the stock. Investors and analysts are commonly used to compare the estimated value of the stock against the current market price. Analysts interpret the gap between the two prices as proof that the stock could be under or overvalued by the market.

8 0

3 years ago

Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve and total cost curve

andrey2020 [161]

Answer:

Explanation:

A monopoly will maximize profit at MR = MC ( marginal revenue = marginal cost)72

MR =MC

40 -0.5 Q = 4

-0.5 Q = 4 - 40 = -36

Q = -36 / -0.5 = 72

The price of the her product

Q = 160 - 4P

4P = 160 - 72 = 88

P = 88 / 4 = 22

4 0

3 years ago

QS 7-13 Note receivable interest and maturity LO P4 On December 1, Daw Co. accepts a $36,000, 45-day, 10% note from a customer.

asambeis [7]

Answer and Explanation:

The journal entries are shown below:

1. Interest Receivable $300($36,000 × 10% x 30 ÷ 360)

To Interest Revenue $300

(Being accrued interest revenue is recorded)

2. Cash $36,450

To Interest Receivable A/c $300

To Interest Revenue A/c $150 ($36,000 × 10% x 15 ÷ 360)

To Notes Receivable A/c $36000

(Being note maturity date it is honoured is recorded)

6 0

3 years ago

Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the c

grin007 [14]

Answer:

Windhoek Mines, Ltd.

The net present value of the proposed mining project is:

= ($232,950).

Explanation:

a) Data and Calculations:

Cost of new equipment and timbers = $500,000

Working capital required = $100,000

Annual net cash receipts = $120,000

Cost to construct new roads in three years = $40,000

Salvage value of equipment in four years = $65,000

Estimated useful life of mine = 4 years

Working capital released in four years = $100,000

Required rate of return = 20%

Cash Flows PV factor Present Value

Cost of new equipment and timbers $500,000 1 -$500,000

Working capital required 100,000 1 -100,000

Annual net cash receipts 120,000 2.589 310,680

Cost to construct new roads in 3 years 40,000 0.579 -23,160

Salvage value of equipment in 4 years 65,000 0.482 31,330

Working capital released in 4 years 100,000 0.482 48,200

Net present value ($232,950)

4 0

3 years ago