An injunction is a strong, authoritative warning or order to do something. An injunction will let a person know how they should be behaving, when they are acting up and how to properly follow directions. A person giving a command or instructions is often using an injunction.
Answer:
The borrower records its receipt of cash and new liability with this entry
Jan 1 Notes Receivable $10,000 Dr.
Sales / Accounts Receivable $10,000 Cr.
Received Note of 3 months with 9% interest
The entry would credit to Sales if it is received against sales or credit to account receivable isf it is received against accounts receivable for a further time period as the case may be.
Solution :
Assets = Liabilities + Paid in capital + retained earnings
1. $ 300,000 $ 300,000
2. $ 30,000 $ 30,000
3. $ 90,000 $ 90,000
4. $ 50,000 $ 50,000
5. $ 5,000 $ 5,000
6. $ 6,000 $ 6,000
7. $ 70,000 $ 70,000
8. --
9. $ 1,000 $ 1,000
Point 4 -- the accounts receivable will increase by $ 120,000 due to the credit sales and the cost of goods sold.
Point 6 -- Adjustments entry at the year end for 3 months from January to March 2022 should be reduced from both assets and retained earnings and the adjusted amount would be $ 4500.
Point 8 -- No impact as the cash is collected against the account receivable and both are assets.
Answer:
In order to find the price of a stock which has different growth rate at different periods, we need to find the price at a time when the growth rate slows down after the initial burst of growth and is stable, in this case its in the 4th period.
Year 4 dividend = 2.07
Growth rate (G)= 8%
Required return (R)= 12%
DDM formula for stock price = D*(1+G)/R-G
2.07*(1+0.08)/0.04
=55.89
The maximum that you should be willing to pay for the stock 4 years from now is $55.89 but in order to find out what the maximum we should pay for the stock now, we need to discount this price 4 years back to the present value using the required return of 12 %
so 55.89/1.12^4=35.52
The maximum that you should be willing to pay for the stock now is $35.52
Explanation:
