Answer:
(A) $6.70
Explanation:
Find dividends per year;
D1=0
D2=0.60
D3=D2(1+g); 0.60(1+0.04) = 0.624
discount rate = 12%
Next, find the PV of each dividend at t=0;
PV of D2 = 0.60 / (1.12) = 0.5357
PV of D3 onwards =
PV of D3 = 7.8 / (1.12^2) = 6.2181
Then sum up these PVs to find the current value of stock;
Value = 0.5357 + 6.2181
Value = 6.7538
The closest value would be A.) 6.70
Answer: (F) Collateral
Explanation:
According to the given question, Collateral is referred to proper designation under UCC in which the Dennis refused to return television to the ABC electronics company.
The term Collateral is referring as assets such as television that is typically used to secure the loan as it provides a low internet rate and due to collateral they also makes the duration of the loan length.
Television is represented as collateral so ABC company cannot perfect its interest so due to this reason Dennis refuses to return television to the company. Collateral is known as the secured loan and it is used by the following ways:
- Purchasing personal assets
- Vehicles
- Investment purpose
- Paychecks
Therefore, Option (F) is correct answer.
Hello there,
its no major
hope i helped
Answer:
times interest ratio = EBIT / interest expense
1)
Kringle: TIE ratio = ($40,870 - $10,300 - $350) / $350 = 86.34
Leihman: TIE ratio = ($46,320 - $12,080 - $2,000) / $2,000 = 16.12
2)
Kringle was better able to cover its interest expenses since its TIE ratio is much higher than Leihman's (more than 5 times higher). This means that it is much easier for Kringle to pay off the interests on its debt.
Answer:
b. cost of goods purchased
Explanation:
Cost of goods available for sale is the maximum amount of goods or services a company can sell during a given period which is usually a fiscal year.
Cost of good available for sale = beginning inventory + Cost of goods purchased + Cost of goods produced.
I hope my answer helps you.