Answer:
When determining the appropriate weights used in calculating WACC, there is need to divide the market value of each stock by market value of the company.
Explanation:
Market value of the company is the aggregate of market value of equity, market value of preferred stock and market value of debt. We will divide the market value of each stock by market value of the company in order to obtain the respective weights.
Answer: please refer to the explanation section for journals and notes
Explanation:
1 April
DR Inventory 23000
CR Trade Payable 23000
inventory is purchased on Free on Board Shipping terms, risks and Ownership of inventory transfers to Kerber Co the moment Wilkes company ships the inventory. inventory must be recognised
6 April
DR Freight costs 900
CR Bank 900
DR Inventory 900
CR Freight costs 900
Kerber Co Paid Freight costs of $900. There are two events happening in this transaction being the payment of freight costs and the capitalisation of freight costs. Freight costs are capitalised (included in the value of inventory) as they are costs necessary to get the inventory in to the premises of the customer (Kerber Co).
7 April
DR Equipment 26000
CR Creditor/Liability 26000
Kerber Co purchase inventory on credit. equipment is debited because Equipment is an asset and liability is credited.
8 April
DR Trade Payable 3000
CR inventory 3000
Damaged inventory returned will decrease inventory balance and also decrease the amount owed to the creditor (Wilkes Company)
. Trade Payable account is Debited and inventory account is credited to record the decrease in inventory and amount payable
15 April
DR Trade Payable 20000
CR Bank 20000
23000 - 3000 = 20 000
recording payment made to the Creditor for inventory purchased or settlement of the trade payable account
Answer:
TRUE
Explanation:
Using the Gordon Growth Model, we can adequately demonstrate that the dividend and price of a share are both components of the cashflow to be considered in share valuation.
Price per share is found to be D(1) / (r - g)
where:
Do = Dividend now
D1 = Dividend in year 1
g = growth
r = required return
So we see that the market price of a share which determines the market capitalization of a company is predicted by a growth in dividends. So the benefits of holding a share will not only depend on how much the share is sold now as against how much it can be sold in the future (in order to make a gain), but also how much you can be earning until such sale occurs.
C. Local customer group's concerns
The other two options are legal considerations of operating in a foreign country. Tariffs are taxes which require payment to comply with law.
