Answer and Explanation:
The computation is shown below:
a) Growth rate = ROE × retention ratio
= 23% × (1 - .40)
= 13.80%
Value of stock = D1 ÷ (k - g)
= 0.84 × (1 + .1380) ÷ (.16 - .1380)
= $43.45
b) Revised growth rate after year 2 = 16% × .50
= 8%
Value at T2 = D3 ÷ (k - g)
D3 = Earnings × (1 + G1)^2 × (1 + G2) × Payout ratio
= 2.1 × (1+.1380)^2 × (1+.08) × .50
= 1.47
Value at T2 = 1.47 ÷ (.16 - .08)
= $18.38
Value at T0 = Value at T2 ÷ (1 + r)^n
= 18.38 ÷ (1 + .16)^2
= 13.66
Answer:
$4,600 debit balance
Explanation:
Provided that
The account receivable balance = $5,000
The amount received from its charge-account customer = $400
So after posting this transaction, the new balance in the account receivable account is
= The account receivable balance - The amount received from its charge-account customer
= $5,000 - $400
= $4,600 debit balance
Hi the answer to this question would be bargaining :)
:-
The first thing you should do when you receive a job application is read the entire document before you begin
completing it.
Answer:
The option which is an example of a debt funding source can be banks, credit unions, or any external lender.
Explanation:
- Debt funding is when a company raises money by marketing bonds, bills and notes, etc. to the investors
- It differs from equity financing which is selling shares of the company.
- Debt funding must be paid back at an previously agreed date.
- If the business goes under, then the lenders have more rights on the property that will be liquidated than the share holders.
