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3 years ago

The sentence, "our company experienced an increase in profits during the last fiscal year," uses precise vigorous wording.

Business

1 answer:

ZanzabumX [31]3 years ago

8 0

Answer:

The statement is: False.

Explanation:

Vigorous wording refers to the act of making information appear more than what it really is, in some cases exaggerating the attention in one point or another. The phrase:

"our company experienced an increase in profits during the last fiscal year";

provides direct, objective information about an event that happened. There are not adjectives that might distort the main message that is intended to be provided.

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The COB Division of Northern Corp. produces and sells a product to both external customers and other Northern divisions. Per-uni

svetoff [14.1K]

Answer:

$425

Explanation:

Data provided as per the question

Direct material = $350

Direct labor = $75

The computation of transfer price should be set is shown below:-

Transfer price should be = Direct materials + Direct labor

= $350 + $75

= $425

Note :- The minimum transfer price shall be "Variable Rate" if there is an excess capacity to produce for internal transfer.

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3 years ago

What journal should a company uses to capture cash transactions?

alexira [117]

I think it is (The Cash Payments Journal)

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3 years ago

The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estim

Artyom0805 [142]

Answer:

the formula used to calculate the cost of equity (required rate of return) based on the bond yield plus risk premium is fairly simple:

cost of equity (Re) = yield of debt (bonds) + firm's risk premium = 11.52% + 3.55% = 15.07%

I'm not sure if the question was copied correctly or not, so I looked for similar questions and it included different numbers.

The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Harrison's bonds yield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Harrison's cost of Internal equity is: = 10.28% + 4.95% = 15.23%

Another question:

The Kennedy Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Kennedy's bonds yield 11.52%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Kennedy's cost of internal equity is: = 11.52% + 4.95% = 16.47%

5 0

3 years ago

maxonik [38]

d. time period and b. internal factors

5 0

3 years ago

Read 2 more answers

Exercise 14-8 Presented below are three independent situations. (a) Oriole Co. sold $1,970,000 of 12%, 10-year bonds at 102 on J

bearhunter [10]

Answer:

$116,230

Explanation:

Calculation to determine the amount of interest expense to be reported on July 1, 2017, and December 31, 2017.

First step is to find the Cash interest on the Bond calculated as:

Cash interest on the Bond = 1,970,000*12%*6/12 = $118,200

Second step is to find the Premium on Bonds Payable calculated as :

Note that (102%-100%)=2%

Hence,

Premium on Bonds Payable = 1,970,000*0.02 = 39,400

The third step is to find the Semiannual bond Premium Amorixed for both July 1, 2017, and December 31 calculated as :

Semiannual bond Premium Amorixed = 39,400/(10*2)

Semiannual bond Premium Amorixed = 39,400/20

Semiannual bond Premium Amorixed = 1,970

The last step is to calculate Interest expenses for the both July 1, 2017, and July 1, 2017, and December 31 using this formula

Interest Expenses = Cash interest - Premium amortized

Let plug in the formula

Interest expenses = 118,200-1,970 = $116,230

Therefore the amount of interest expense to be reported on July 1, 2017, and December 31, 2017 will be $116,230

7 0

3 years ago