<span>how much of their company's merchandise is being sold, how much of it has been damaged, how much has gone out of style or is out of season. Once the inventory is taken, Pristine products should be able to project how much product needs to be manufactured and sold going forward so that they do not work at a loss of profits.</span>
Answer:
Cash donations to public charities are limited to % of a taxpayer's AGI? Cash donations can be deducted to a maximum of 60% of your AGI.
Donations of capital gain property to public charities are generally limited to % of a taxpayer's AGI? If you hold the assets (whether stock or property) for more than one year, donations can be deducted (at fair market value) to a maximum of 30% of your AGI.
Donations of certain capital gain property to private non operating foundations are limited to % of AGI? When you donate short term capital gain property to private non operating foundations you can deduct up to 30% of your AGI.
Answer:
cost of equity is 11.60 %
Explanation:
Given data
cost of capital = 10.9 percent
tax rate = 35 percent
earnings = $21,800
bonds outstanding = $25,000
rate = 6 %
to find out
cost of equity
solution
we will find first value of unlevered
value of unlevered = earning ( 1 - tax rate ) / cost of capital
value of unlevered = 21800 ( 1 - 0.35 ) / 0.109 = $130000
so
value of unlevered will be for firm = 130000 × bond outstanding × tax rate
value of unlevered will be for firm = 130000 × 25000 × 35%
value of unlevered will be for firm = $138750
so value of firm will be = bond outstanding + equity
so equity will be = 138750 - 25000
equity = $113750
so now
cost of equity will be = cost of capital + ( cost of capital - rate) (bonds / equity ) ( 1 - tax rate )
cost of equity will be = 10.9%+ ( 10.9 % - 6%) (25000 / 113750 ) ( 1-0.35)
so cost of equity = 11.60 %
Answer:
cash 2,790 debit
unearned revene 2,790 credit
unearned revenue 1,860 debit
rent revenue 1,860 credit
Explanation:
The revenue from the rent is unearned as currently the firm has to provide the rent spance for three months It will be earned as time passes.
At year-end December 31th we have earned 2 months (Nov and Dec) therefore we reocgnize for that amount
2,790 x 2/3 months = 1,860 rent revenue
Answer: They are Riskless
Explanation:
People invest in Treasury bills because they are sure that they will get a return. U.S. Treasury bills are the safest securities in the world and as such investors are essentially guaranteed their money back plus little interest.
This is in contrast with stocks which can bring great returns at one point and result in massive losses in another. Since 1926 for instance, there have been events that led to massive losses in the stock market such as the Great Depression, Black Monday and the Great Recession.
Through all those, the Treasury bills still gave people returns.