The theory that education increases productivity and results in higher wages

Kim’s flowers decided to borrow $26,000 from the bank and use the proceeds to purchase a new delivery vehicle. How should they c

Neko [114]

Based on the fact that Kim's flowers borrowed the money and used it to buy a new delivery vehicle, this business activity should be categorized as both a financing activity and an investing activity.

<h3>What should they classify this business activity as?</h3>

Because Kim's Flowers got the money as a loan, it would be recorded as an inflow for financial activities.

They then used it to purchase a delivery vehicle which is an investment and a capital asset so this will count as an investment activity.

Find out more on classifying business activities at brainly.com/question/14790406

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8 0

2 years ago

One year ago, you purchased 300 shares of Southern Cotton at $32.60 a share. During the past year, you received a total of $280

Harlamova29_29 [7]

Answer:

Total Return on investment=12.678%≅12.68%

Explanation:

Given;

Number of Shares= 300

Purchasing price of each share=$32.60

Total Dividends= $280

Selling price of each share= $35.80

Find:

Total Return on investment=?

Solution:

Total Return on investment= $\frac{(Selling\ Price-Purchase\ Price + \frac{Total\ Dividends}{Shares})}{Purchase\ Price}$

$Total\ Return\ on\ investment=\frac{\$35.80-\$32.60 +\frac{\$280}{300}}{\$32.60} \\$

Total Return on investment=0.12678

In Percentage:

Total Return on investment=12.678%≅12.68%

3 0

3 years ago

During the financial crisis of 2007-2008, the Fed engaged in lending to certain large non-bank financial firms in the private se

Delvig [45]

Answer: D. The Fed wanted to limit the inflation risk inherent among financial institutions.

Explanation: An alternative lender, or non-traditional lender, is a loan provider, often a short-term loan lender that is often not heavily regulated by state or federal agencies. ... Secured loans typically have lower interest rates than unsecured non-traditional loans because they minimize the lender's risk of loss.

6 0

3 years ago

Read 2 more answers

2. At which inventory level is operations management considered to be doing an excellent job? A. Above the minimum level B. Abso

BigorU [14]

I would say D. because that is what they want

4 0

3 years ago

Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

<em>Now we solve for the intrinsic price using the gordon model</em>

<em>with multi-stage growth:</em>

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

<u>Finally we add them and get:</u>

42.97160726

8 0

3 years ago