Answer: $678,220
Explanation:
Given that,
Purchase Discounts = $ 11,000
Freight-in = $15,300
Purchases = $689,020
Beginning Inventory = $55,000
Ending Inventory = $45,600
Purchase Returns and Allowances = $15,100
Cost of goods purchased:
= Purchases + Freight in - Purchase discounts - Purchase returns and allowances
= $689,020 + $15,300 - $ 11,000 - $15,100
= $678,220
Answer:
D) all of the above
Explanation:
First find the present value for each alternative using PV of perpetual cashflow formula;
PV = CF / rate
CF = 50
If rate= 5%;
PV = 50/0.05 = $1,000
If rate = 2%;
PV = 50/0.02 = $2,500
With these two calculations, we see that;
-the bond price increased by $1,500
-you could sell this bond at a capital gain, meaning you can sell it a higher price that what you bought it for.
-at an interest rate of 2%, the speculative demand for money would increase
Hence , all these choices are correct!
The incorrect statement is : The income from the TSA is received income tax-free. Upon retirement, payments received by employees from the accumulated savings in tax-sheltered annuities are treated as ordinary income.
Answer:
The expected rate of return on this stock is 10.31%
Explanation:
The constangt growth model of the DDM approach is used to calculate the price of a share based on the edxpected future dividends from a stock that are growing at a constant rate. The formula for price using constant growth model is,
P0 = D0 * (1+g) / (r - g)
Plugging in the values,
65 = 1.7 * (1+0.075) / (r - 0.075)
65 * (r - 0.075) = 1.8275
65r - 4.875 = 1.8275
65r = 1.8275 + 4.875
r= 6.7025 / 65
r = 10.31% or 0.1031
