Answer:
Project C
Explanation:
If we make the decision based on the net present value (NPV) then we will choose the project that has the greatest NPV.
NPV is the sum of the present value of project´s cash flows. To have the present value of a cash flow (inflows and outflows) we use a discount rate and the year of the cash flow (the formula is attached).
When we have al cash flows in present value, we sum them including the investment (which is most of the time negative and it is in present value so we don´t have to transform it). This is the NPV (formula attached).
If the NPV is greater than cero, then the project is creating value, the investors will recover the investment and will have profits. So if the NPV of project is greater than the NPV of another, that project is creating more value.
Answer:
brand extension
Explanation:
In simple words, When a business puts one of its recognized brand identities on such a new commodity or new specific product, this is known as a brand extension. A brand expansion may help a firm attract new populations, grow its client base, improve sales, and raise overall profitability if it is effective.
Thus, the process in the question will be termed as brand or business extension.
Answer:
Retained earnings......................Dr $22,000
Dividend expense $22,000
Explanation:
There are two accounts, temporary and permanent accounts. Temporary accounts such as dividends and revenue need to be closed and charged against permanent accounts at the end of reporting period. This is done to estimate the total earnings of the firm during the period.
Dividends are charged to permanent account, retained earnings. Following is the closing entry:
Particulars Debit Credit
Retained earnings $22,000
Dividend expense $22,000
(Dividends expenses closed
by charging to retained earnings)
Answer:
Answer:
Growth rate (g) = n-1√(<u>Latest dividend)</u> - 1
Current dividend
= 4-1√($2.49/2.20) -1
= 3√(1.1318) -1
= 1.04 - 1
= 0.04 = 4%
Ke = Do<u>(1 + g) </u> + g
Po
Ke = $2.57(<u>1 + 0.04</u>) + 0.04
65
Ke = 0.04 + 0.04
Ke = 0.08 = 8%
Explanation:
In this case, we need to calculate the growth rate using the above formula. Then, the cost of equity will be calculated. Cost of equity is a function of current dividend paid subject to growth rate divided by current market price.
Explanation:
Answer:A
Explanation:creates a lot of something quickly/just took the test