Answer:
The company should credited on the Cash account and the Cash Discount Receipt for the settlement of the inventory with 10 days.
Explanation:
The detailed entry will be:
19th Sep
Dr Account Payable $40,000
Cr Cash $39,200
Cr Cash Discount Receipt $800
( to record payable settlement and the receipt of cash discount)
Working note: As the company paying with 10 days, the supplier will allow a 2% discount on it net inventory purchase ( 44,000 - 4,000 = $40,000)
Thus, the discount will be 40,000 x 2% = $800 and Cash repayment will be 40,000 x (1-2%) = $39,200.
Answer:
E
Explanation:
Dividends thereafter will be lower
Answer:
The answer is:
a real exchange rate
Explanation:
The last word in the question seems to be incomplete, I am assuming that the intended word is "represent".
Real Exchange Rate (RER), also known as Real Effective Exchange Rates (REER) is an exchange rate that compares the relative price of the two countries' consumption baskets (what the average consumer buys and its price indicates how much consumers pay for it). It gives information beyond the nominal exchange rate or the relative prices of two currencies. In this example, the RER between the U.S dollar and the Mexican Pesos is used to determine what the U.S. dollar can buy in Mexico, as compared to what that same amount can buy in the U.S. This helps to tell us if a currency is undervalued or overvalued.
Answer:
True
Explanation:
20 percent of small businesses fail within the first year
Answer:
1. Using the Gordon Growth model;
Price = Next dividend / (required return - growth rate)
= (Current dividend * (1 + Growth rate)) / (required return - growth rate)
= (2.90 * (1 + 4.75%)) / (9% - 4.75%)
= 3.03775/ 4.25%
= $71.48
2. Six years;
The stock will grow at a rate of 4.75% every year.
= 71.48 * (1 + growth rate)⁶
= 71.48 * 1.0475⁶
= $94.43
13 years;
= 71.48 * 1.0475¹³
= $130.67
