Answer:
Journal Entry
Date Account Titles and Explanation Debit Credit
Jan 1 Cash $511,875
Bond payable $450,000
Premium on bond payable $61,875
($450,000*13.75%)
(To record issue of bonds at premium)
Answer:
30.92%
Explanation:
You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM
<u>Dividend discount model;</u>
cost of equity; r = (D1/P0) +g
whereby, D1 = next year's dividend = 3.00
P0= current price = 13.65
g = dividend growth rate = 11% or 0.11 as a decimal
r = (3/13.65) + 0.11
r = 0.2198 + 0.11
r= 0.3298 or 32.98%
<u>Using CAPM;</u>
r = risk free + beta (Market risk premium)
r = 0.049 + (2.8 * 0.0856)
r = 0.049 + 0.2397
r = 0.2887 or 28.87%
Next, find the average of the two cost of equities;
=(32.98% + 28.87% )/2
= 30.92%
Answer:
The correct answer is higher than that for the Hungarian project.
Explanation:
The break-even point is defined as that point or level of sales in which the total income is equal to the total costs and, therefore, no accounting profit or loss is generated in the operation. It is a mechanism for determining the point at which sales will exactly cover total costs. The breakeven point is also known as the Cost-Volume-Profit ratio, and emphasizes the different factors that affect profit. The break-even point allows determining the minimum number of units that must be sold or the minimum value of sales to operate without losses. The analysis of the break-even point answers the question related to the decisions that must be made about the planning of the profits of a company or an investment project. In this regard, it is convenient to say that the study of any investment project must include the calculation of the sales levels (either in units or in pesos) that are required for reach operational balance.
Answer:
whats the question this is just a statement?
Explanation:
I would like to help but I need a question
Answer:
Caveat emptor is the correct answer.
Explanation: