Answer:
24 years
Explanation:
Since Manny's savings account is yielding a 3% compound interest, he can use the rule of 72 to determine how much time it will take for his money to double:
years to double = 72 / interest rate = 72 / 3 = 24 years
The rule of 72 applies to any investment that yields compound interest.
It is true that an external transaction is a transaction the firm conducts with a separate economic entity.
<h3>What are internal and external transactions?</h3>
An internal transaction is any financial activity that occurs within an organization rather than with a third party. Usually, money is exchanged between divisions or between the business and its employees. Even while internal transactions aren't sales like external ones are, they still have an impact on the company's finances.
An external transaction is one that involves a third party from outside the transaction. A company conducts external transactions the majority of the time throughout an accounting period.
The acquisition of goods from a supplier, the payment of cash to a creditor, and the payment of wages to employees are examples of external transactions.
To know more about external transactions visit: brainly.com/question/11867978
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Answer:
21%
Explanation:
We can calculate the expected return of a firm by add dividend yield and growth rate but in this question, the growth rate is not given therefore we will find growth rate first with the available data
DATA
Payout ratio = 0.4
Return on equity = 25%
Dividend yield = 6%
Solution
Growth rate = Return on equity x retention ratio
Growth rate = Return on equity x (1 - payout ratio)
Growth rate = 25% x (1-0.4)
Growth rate = 25% x 0.6
Growth rate = 15%
Expected return = Dividend yield + growth rate
Expected return = 6% + 15%
Expected return = 21%
Answer:
Journal entry to eliminate Sale to Peter Company
Debit : Sales Revenue (Sally Company ) $50,000
Credit : Cost of Sales (Peter Company) $50,000
Explanation:
Peter Company and Sally Company are in a group and Peter Company is the Parent whilst Sally Company is the subsidiary.
For 2019 Eliminate an Intragroup Transactions that occur between Peter Company and Sally Company.
