The political cartoon referred to
was by Jeff Parker, has been an editorial cartoonist for Florida Today since
1992. The overall message being conveyed by the referenced political cartoon is
that advertising on school buses could have a negative affect on children.
Certain states in the U.S (e.g. New Jersey, Texas, Massachusetts among others) permit school districts to sell ad space on school buses in order to raise funds for school activities. Some have <span>argued that these ads unfairly target young, impressionable consumers, and as such should be stopped.</span>
Answer: C) eliminating the effects of income statement transactions that did not result in a corresponding increase or decrease in cash
Explanation:
The income statement comprises of entries that are not cash based in nature but help in the computation of taxes amongst other things such as depreciation and amortization.
When calculating net cash provided from operating activities therefore the income calculated should be adjusted for any expenses or revenue that are not cash based in nature and so will not result in a corresponding increase or decrease in cash.
For instance, adding back depreciation and amortization to the net cash balance as both do not actually reduce the cash balance of the company.
Answer: frequently spending more money than is earned
Explanation:
Answer:
intrinsic value: 49.50
value in four years: $ 61.32
value in fourteen years: $ 104.75
Explanation:
we solve using the gordon model:
D0 = 3.05
D1 = 3.05 x ( 1 + 0.055) = 3.21775
Value: 49.50384615
<u>In the future will grow at the same rate as dividends:</u>
price in four years: 49.50 x (1.055)^4 = 61.32182021
price in fourteen years: 49.50 x (1.055)^14 = 104.7465274
Answer:
8.1%
Explanation:
Firstly, let look at the formula for calculating weighted average cost of capital (WACC):
WACC = (D/A) x r_D x (1-t) + (E/A) x r_E + (PE/A) x r_PE, where:
A: Market value of company asset;
D: Market value of company debt;
E: Market value of company equity;
PE: Market value of company preferred equity;
r_D: cost of debt;
r_E: cost of equity/retained earnings;
r_PE: cost of preferred equity;
t: tax rate
Putting all the numbers together, we have:
WACC = 35% x 6.5% x (1-25%) + 55% x 10.5% + 10% x 6% = 8.1%
