Answer:
a) $12,750
Explanation:
The computation of the bad debt expense is shown below:
= Credit sales × estimated percentage given
= $255,000 × 5%
= $12,500
Simply we multiplied the credit sales with the given estimated percentage so that the accurate amount can come i.e bad debt expense for the particular year
All other information which is given is not relevant. Hence, ignored it
Answer:
Existence of an agreement: ...
Existence of business: ...
Sharing of profits: ...
Agency relationship: ...
Membership: ...
Nature of liability: ...
Fusion of ownership and control: ...
Non-transferability of interest:
Answer:
cost of equity = 12.16 %
Explanation:
given data
annual dividend of $3.73
increases dividend = 3.40 percent annually
stock price = $43.96 per share
to find out
What is the company's cost of equity
solution
we will use here Gordon model for compute company's cost of equity that is
market value =
........................1
put here value we get
43.96 =
solve it we get
cost of equity = 0.121735
cost of equity = 12.16 %
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