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2 years ago

When the concept of conservation is applied to the balance sheet, it results in (

1 answer:

6 0

I think the correct answer from the choices listed above is option B. When the concept of conservation is applied to the balance sheet, it results in understatement of capital. Hope this answers the question. Have a nice day. Feel free to ask more questions.

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The Delta Manufacturing Company has a marginal tax rate of 21 %. The last dividend paid by Delta was $2.60. The expected long-ru

Musya8 [376]

Answer:

The stock price is 38.63

Explanation:

We use the gordon model to calculate the horizon value and with htat the value of the stock:

$\frac{D_1}{r-g} = PV\\\frac{D_0(1+g)}{r-g} = PV\\$

D1 = 2.60 x 1.04 = 2.704

rate of return 11% = 0.11

grow rate = 4% = 0.04

$\frac{2.704}{0.11-0.04} = PV\\$

P0 = 38.62857143

The taxes should be ignored as the gordon model do not include them in the calculations

5 0

2 years ago

Wanda has graduated from community university (cu) and after nine months has failed to find a job. she graduated with a degree i

Blababa [14]

CU's attorneys should file a motion for summary judgement, which asks the judge to make a ruling on the facts of the case alone without going to a full trial.

3 0

3 years ago

Adonis Corporation issued 10-year, 11% bonds with a par value of $270,000. Interest is paid semiannually. The market rate on the

shutvik [7]

Answer:

e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.

Explanation:

Based on this information,Adonis Corporation is issuing a coupon paying bond.

The $286,827 that they receive is the market price/ market value of the bond.

The duration of the bond = 10 years, however, since the coupons are paid semiannually, there will be 10*2 = 20 payments in total.

Semi annual coupon payment; PMT = (11%/2) *270,000 = $14,850
The $270,000 is the face value of the bond which must be repaid at the end of the life of this bond.
Therefore, Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.

3 0

2 years ago

If the firm’s beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm’s cost o

Luden [163]

Answer:

CAPM= RF+B(RM-RF)

= 9+1.6(13-9)

=15.4%

13=RS+1.6*(4)

13=RS+6.4

RS=13-6.4

RS=6.6%

Explanation:

3 0

2 years ago

Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. H

AURORKA [14]

Answer: B. One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect

Explanation:

From the information given in the question, the journal entry at the time of sales will be represented as:

Debit Accounts receivable $1,750

Credit Sales $1750

Now, when the credit receipt is received as illustrated in the question, the journal entry will be:

Debit Cash $1,750

Credit Accounts receivable $1,750

Therefore, one asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.

The correct option is B.

7 0

2 years ago