Answer:
The correct answer is d.no effect on the accounting equation
Explanation:
The accounting equation is = Assets = Liabilities - Owner's Equity
The sale for $5,000 is recorded in a Profit and Loss Statement not in a Balance Sheet because is not an Assets or Liabilities nor Owner's Equity
Answer:
b. $12.67
Explanation:
The value of the company is the present value of its future dividends payments discounted at the company's cost of equity.
Year 1 dividend=current year dividend*(1+12%)
Year 1 dividend=$60m*(1+12%)=$67.20m
Year 2 dividend=$67.20m*(1+12%)=$75.26m
Year 3 dividend=$75.26m*(1+12%)=$ 84.30m
Year 4 dividend=$ 84.30m*(1+12%)=$ 94.41m
Year 5 dividend=$ 94.41m*(1+12%)=$105.74m
the terminal value of dividends=Year 5 dividend*(1+terminal growth rate)/(cost of equity)
the terminal value of dividends=$105.74m*(1+8%)/(16%-8%)=$1427.49m
value of the company=$67.20/(1+16%)^1+$75.26/(1+16%)^2+$ 84.30/(1+12%)^3+$ 94.41/(1+16%)^4+$105.74/(1+16%)^5+$1427.49/(1+16%)^5
value of the company=$956.00 m
value of one share=$956.00 m/75m=$12.75(the correct option is $12.67 the difference is due to rounding error)
Based on the information given, it can be deduced that the marginal product of labor will decrease and the marginal product of capital will increase.
From the information given, it was stated that Max Company produces electronic gadgets using labor and capital and that he increases labor and decreases capital in order to produce the same quantity of gadgets.
Due to this, according to the law of diminishing marginal productivity, the marginal product of labor will reduce and that of capital will rise.
Learn more about labor on:
brainly.com/question/333305
Answer:
d. $15,000 is allocated to A; $10,000 is allocated to B
Explanation:
Activity C will not carry and suspended losses as it was profitable, the net of 25,000 will be distributed among the lossing activites:
60,000+ 40,000 = 100,000 loss
activity A weight 60%
activity B weight 40%
net loss: 25,000
activity A 25,000 x 60% = 15,000
activity B 25,000 x 40% = 10,000
Answer:
investment
Explanation:
An investment is a commodity or object purchased for the purpose of producing revenue or development. In a financial sense, an investment is really the buying of products which are not used now but used for wealth creation in the forward.
In finance, investment is a capital commodity acquired with the expectation that the commodity provides income in retirement or is being sold for profit at a better price later. In other terms, Investment is really the concept of putting capital to work to create or grow a company or plan or to acquire an estate, with the purpose of generating income or capital growth.
