Answer: See explanation
Explanation:
The flotation cost adjustment that must be added to its cost of retained earnings will be calculated thus:
= Expected dividend / [Current price × (1 - Floatation cost)] + Expected growth rate
= 2.00/[20.00 × (1 - 4.5%)] + 4.2%
= 2.00 /[20.00 × (1 - 0.045)] + 0.042
= 2.00 / (20.00 × 0.955) + 0.042
= (2.00/19.10) + 0.042
= 0.104712 + 0.042
= 0.146712
New cost of equity = 14.67%
You didn't give the cost of equity calculated without the flotation adjustment. Let's assume that this is maybe 11%, the floatation on adjustment factor = 14.67% - 11% = 3.67%
Thirty One percent <span>of the u.s. adult population has a college or post-college education (as of 2012).</span>
Answer:
1. Depreciation expense for 2019(Straight-line)= (Cost of the assets - Salvage value) / life of the assets
= ($330000 - $33000)/8
= $37,125
2. Sum-of-the-years'-digits = 1+2+3+4+5+6+7+8 = 36
Depreciation Expense for 2019(Sum-of-the-years'-digits method)
= ($330000 - $33000)*8/36
= $66,000
3. Double-declining-balance depreciation rate = (100/8 years)*2 = 25%
Depreciation Expense for 2019 = 330000*25% = $82,500
Gross Net Income ✌hope this helps because i just had to ask my business teacher on the phone
Answer:
D. is not sending a strong message to investors and creditors that it has the ability to repay its short-term debt
Explanation:
The cash ratio helps measure the liquidity of the company as it shows if it can cover its short-term debt with the cash aand cash equivalents it has. When the ratio is less than 1, as in this case, it means that the company doesn't have enough cash to cover the short-term debt.
