Answer:
It would be wise to use the CAPM capital cost.
Explanation:
It should use the Capital Assets Pricing Model.
The market rate is not sufficient. It is included in the CAPM calculation to asses the impact in the firm or industry beta and the free-risk rate.
The return for the dividend grows model is calculated with the current stock price and expected dividends. We can't know for sure if the stock wasn't undervalued or overrated at the moment of solving for return.
The CAPM model takes consideration of the current market interest rate, the own non-diversifiable risk of the firm and the fact of a free-risk interest rate. It is the better option
Answer: $672,000
Explanation:
Porter sold land to Simi which means that their land balance reduces. Simi's however increases by the same amount. As Porter owned all the voting stock, the sale will be accounted for at the book value.
The Consolidated balance for land in 2020 will therefore be calculated as,
= (Porter land value - Sales price) + (Simi land value + Sales price)
= (416,000 - 65,000) + (256,000 + 65,000)
= 351,000 + 321,000
= $672,000
The book value of the Consolidated land will be $672,000 in 2020.
Answer:
$3.68 per bag for bagels; $1.30 per package for cream cheese
Explanation:
In this question we have to assume the things
Like Baggles be X
And. the cream cheese be Y
So, there are two equations which are presented below:
2X + 3Y = $11.25
5X + 2Y = $21
To find out the X and Y value we have to equate the both equations. So, we multiplied by 5 and multiplied by 2 in equation 1 and 2
So, the updated equation would be
10X + 15Y = $56.25
10X + 4Y = $42
Now subtract it, so the value would be
11Y = $14.25
Y = $1.30 per bag
Now put this Y value in any equation
2X + 3Y = $11.25
2X + 3 × $1.30 = $11.25
2X + $3.9= $11.25
2X = $7.35
X = $3.68 per package
Answer:
Entry is given below
Explanation:
As Givens brick company is paying off the liability of note payable and the interest amount therefore, it will be debited as it is a decrease in liability. Cash will be credited as it is our asset and its decreasing.
Entry DEBIT CREDIT
Notes payable $600,000
Interest $36,000(w)
Cash $636,000
Working
Interest = $600,000 x 8% x9/12
Interest = $36,000
Answer:
Gear Tech Corp.
Michelle is performing the role of a:
E. Outplacement counselor.
Explanation:
Outplacement counseling is provided to ex-employees to transition them from Gear Tech Corp. to other jobs outside this particular company because they have been laid off from their jobs. It is a kind of an employee benefit, which some companies provide because they are interested in ensuring that their ex-employees do not remain unemployed for long. A company like Gear Tech Corp. believes strongly that if ex-employees are not useful in the company, they can be more useful in other companies. For this purpose, the company can organize counseling programs for their relieved staff to set them on a smooth transition to outside roles that may be more appropriate for them.
