The suitable portfolio for the young investor is a.) portfolio of with a high percentage of stocks. Stocks are a person's share in a company, giving them profits or losses based on a company's performance. Stocks are highly risky due to the unpredictable performance in the stock market, prices can rise or drop fast. However, the returns of the stocks are higher compared to other financial instruments.
Well, outstanding debt is debt you owe to a creditor or multiple creditors. Outstanding debt can be on a credit card, loan or student loan. ... If the amount you owe is close to your credit limit that is likely to have a negative effect on your score.
Answer: strategic planning
Explanation:
A planning concerned with long-range decisions such as defining the scope of business is referred to as the strategic planning.
Strategic planning helps in giving a business or an organization a direction which is required in knowing where the company is presently and where the company intends going.
The strategic plan shows the visions,, missions, of the organization and the necessary steps that such organization will take to achieve its goals.
Answer:
6.57%
Explanation:
Given that,
D1 = $2.00
Dividend growth rate, g = 4.50%
Stock price, P0 = $47
Before-tax cost of debt = 6.50%
Tax rate = 40%
Target capital structure for Debt = 45%
Target capital structure for Common equity = 55%
Cost of equity:
= (D1 ÷ P0) + g
= ($2.00 ÷ $47) + 4.50%
= 4.25% + 4.50%
= 8.75%
After tax cost of dept:
= Before tax cost of dept × (1 - Tax rate)
= 6.50% × (1 - 0.40)
= 6.50% × 0.60
= 3.9%
Company’s WACC if all the equity used is from retained earnings:
= (Cost of equity × Percent of common equity) + (After tax cost of dept × Percent of debt)
= (8.75% × 55%) + (3.9% × 45%)
= 4.8125% + 1.755%
= 6.57%
The expense recognition (matching) principle, as applied to bad debts, requires: the use of the direct write-off method for bad debts.
The matching principle is aa basic guideline in accounting. This principle is used to determine where debts need to go when accrual journals and adjusting entries are being made for a companies reports. The direct write-off method where a company immediately charges off bad debt from sales revenue.
