Answer:
b.$11,088
Explanation:
The computation of the interest expense is shown below
= Cash interest + discount amortized
= ($88,000 × 12%) + ($88,000 - $85,360) ÷ 5 years
= $10,560 + $528
= $11,088
Hence, the interest expense is $11,088
Therefore the correct option is b.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Bistro's first banner was a form of a unilateral contract. This means that the banner was a legally enforceable promise between two parties where one party will perform the requirement and the other (Bistro) would pay.
For the given situation, Daisy substantially performed the required task and therefore, Bistro is not allowed to revoke the offer.
Based on the above, the statement that <span>best describes Daisy's and Bistro's rights in this situation is:
</span><span>Bistro cannot revoke the offer because Daisy has substantially performed the requested action.</span>
Answer:
Resources are limited.
Production requires resources.
Everyone wants or needs goods.
Explanation:
Different regions provide different resources that people can use for their business. People in that region need to understand the type of resources that are available for them and produce the goods that can be sustained by the available resource.
This scarcity means that acquiring resources require a certain amount of capital. Since people do not unlimited capital, they have to be picky with their consumption/production to ensure the ones with highest priority are fulfilled first.
On top of that, everyone wants or needs goods. Meaning that in order to obtain a certain resources, people will have to face competition. As the competition become more fierce, the sacrifice that is needed to obtain a certain product is increased. This is also why they have to watch out which product they should choose to consume.
Spending analysis would use data to analyze purchasing data.
Answer:
Under CAPM:
Re = Rf + Beta(Rm - Rf)
Rf = 5%
Rm - Rf = 6%
Beta = 1.25
Re = 5% + (1.25 x 6%) = 12.5%
Under dividend discount model:
Re = (Div₁ / P₀) + g
Div₁ = $1.20
P₀ = $35
g = 8%
Re = ($1.20 / $35) + 8% = 11.43%
Under bond yield plus risk premium approach:
Re = Pre-tax cost of debt + risk premium over its own debt
Pre-tax cost of debt = 7%
risk premium over its own debt = 4%
Re = 7% + 4% = 11%
The highest cost of equity results from the CAPM model and it is 12.5% while the lowest results from using the bond yield plus risk approach (11%), the difference is 1.5% between them.
