Answer:
a)equity
Explanation:
From the question, we are informed about that how Harris Inc. is planning a large expansion and needs to raise new capital. If management thinks the firm’s stock is overvalued and its prospects are poor while investors are unaware of these opinions, In this case the management will want to raise capital using equity. In finance, equity can be regarded as when there is debts or liabilities associated to the ownership of assets .It can be visualize as the stake of shareholder in the firm which can be seen on balance sheet of the company .Equity is measured for accounting purposes by subtracting liabilities from the value of an asset. Equity can be calculated as substraction of total liabilities from total assets of the company , it's usefulness bid found in some key financial ratios like ROE.
Answer:
(i) and (iv)
Explanation:
The appreciable cost is the cost in which the assets can be depreciation over the useful life
And, the appreciable cost is come after deducting the salvage value from the acquisition cost
The formula to compute the depreciation expense using the straight-line method is shown below:
= (Original cost - salvage value) ÷ (useful life)
So it can be calculated after considering the first and four options
Answer:
d. margin of safety
Explanation:
The margin of safety is the difference between the recorded sales and break-even sales. It is used to indicate the level by which sales can decrease before a project becomes unprofitable. The formula for calculating the margin of safety is actual sales minus break-even point divided by the actual sales.
The margin of safety is also referred to as a safety margin. It can be calculated either in units or dollar value. Managers and investors set the size of the margin of safety, depending on their preference and type of investment.
Answer:
the one share value at today is $6.63
Explanation:
The computation of the one share value at today is shown below:
Price is
= (Dividend at the year 1) ÷ (1 + required rate of return)^1 + (Dividend at the year 2) ÷ (1 + required rate of return)^2
= ($0.75) ÷ (1 + 0.17)^1 + ($8.20) ÷ (1 + 0.17)^2
= 0.641025641 + 5.990211118
= $6.631236759
hence, the one share value at today is $6.63
