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3 years ago

14

True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that

is left over after dividends are paid out to shareholders. False True

1 answer:

Rudik [331]3 years ago

5 0

Answer:

true

Explanation:

i really agree with that

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On March 31. 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,810. The balance in the firm's che

NNADVOKAT [17]

Answer:

Both requirements 1 and 2 are the same, but I guess one refers to a bank reconciliation statement and the other one to a cash account reconciliation.

Bank account reconciliation:

bank balance $9,810

+ deposits in transit $2,935

- outstanding checks 358 and 359 ($2,225)

<u>+ check deducted by mistake $590</u>

reconciled bank account $11,110

Cash account reconciliation:

Cash account balance $10,276

+ note and interest collected $1,320

- bank fees ($31)

- NSF check Dane Jarls ($555)

<u>+ error on check 341 $100 </u>

reconciled cash account $11,110

3 0

3 years ago

Agnes sold 50 shares of ABC stock to her son, Steve, in year 4 for $42,000. She bought the stock eight years ago for $50,000. St

DENIUS [597]

Answer:

None, he will have to declare by the beginning of year seven

4 0

3 years ago

Which of the following statements is TRUE? A. Just because one firm receives a 3.20 overall rating and another receives a 2.80

ruslelena [56]

Answer: Option E: E.Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it does not necessarily follow that the first firm is precisely 14.3 percent better than the second, but it does suggest that the first firm is better in some areas is TRUE

Explanation:

Because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it does not necessarily follow that the first firm is precisely 14.3 percent better than the second, but it does suggest that the first firm is better in some areas.

The former firm received such high rating most times because of pedigree or experience or winning rate which does not judge it better than the latter firm in all areas.

5 0

3 years ago

Producer surplus is defined as the:difference between a price floor and the market price.gap between the supply curve and the ma

klemol [59]

Answer:

Gap between the supply curve and the market price.

Explanation:

Producers surplus refers to the surplus that a producer of a commodity can obtain. The producers surplus is the difference between the producer's willingness to accept the price and the actual price they have received.

Producers surplus = Actual market price - Willingness to accept the price

Graphically, it is the area between the upper portion of supply curve and the market price.

7 0

3 years ago

To help finance a major expansion, Top Fashion Company sold a noncallable bond several years ago that now has 20 years to maturi

Basile [38]

Answer:

4.51%

Explanation:

First, find the yield to maturity(YTM) of the bond; this would be the pretax cost of debt.

Using a financial calculator, input the following;

Face value of the bond ; FV = 1000

Semiannual coupon payment; PMT = (8%/2)*1000 = 40

Present value of bond; PV = -1050

Time to maturity; N = 20*2 = 40 semiannual payments

then compute semi-annual interest rate ; CPT I/Y = 3.756%

The pretax cost of debt = 3.756% *2 = 7.51%

After tax-cost of debt is used for WACC calculation and is therefore as follows;

7.51%(1-0.40) = 4.51%

3 0

3 years ago