Answer:
See the explanation for the answer.
Explanation:
(a)
Bonds are issued at face value
date Account debit credit
Jan 1 ,2019 cash $379,500
bonds payable $379,500
[to record cash received
against bonds issued]
b.
Interest accrued from Jan-Dec = $379,500*7% = $26,565
Account
Dec 31 ,2019 Interest expense $26,565
Interest payable on bonds $26,565
As interest is accrued it will be expensed
.
However, it is not paid so it will be interest payable
c) Interest paid
Debit Credit
Jan 1 ,2020 Interest payable on bonds $26,565
Cash $26,565
Answer:
small business
Explanation:
According to my research on the different types of companies, I can say that based on the information provided within the question Vernon's company can be categorized as a small business. A small business refers to any company that is independently owned and has only a small number of employees and resources in comparison with the industry that it is currently in. Since Vernon business is run from his house and he only has 55 employees, he would be classified as a small business.
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Answer:
a.
15%
b.
29.57
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of the dividend discount model approach. The DDM values the stock based on the preset value of the expected future dividends from the stock. The price of the stock today under this model is,
P0 = D1 / r - g
Where
P0 = Price of stock
D1 = Future Dividend
r = Expected rate of return
g = Growth rate
a.
As we have the price of the price of the stock, we need to calculate the expected rate of return by extracting the formula.
r = (D1 / P0) + g
As per given data
P0 = Price of stock = $34
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
Placing Values in the formula
r = ( $3.4 / 34 ) + 0.05
r = 0.15 = 15%
b.
As per given data
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
r = Expected rate of return = 16.5%
Placing Values in the formula
P0 = D1 / r - g
P0 = $3.40 / (16.5% - 5%)
P0 = $29.57
One challenge would be to know what your holding how much ur holding and all that
