Answer:
b. make less amount of money to be received for the investments made today.
Explanation:
Therefore you make more money and you can get a better money improvement rate and just make alot of money so you can be happy and wealthy becouse we all know that a 2 year college is not as good as a 4 year collegs so the real reson that people go from 2 to 4 is becouse of the money rates 4 year college----------------->more MONEY
2) The area has a major shipping port.
4) There is a major city 50 miles away from the region.
5) The area has warm weather and ocean beaches.
Number 2 tells about the economy and how they trade. Number 4 tells about were the major city is which tells you that they aren't that big, so they don't have a huge economy. Number 5 tells you about how they might farm.
Hope this helps
Answer:
1. C
2. B. 13.65%.
Explanation:
1. Some of the portion of Earnings After Tax is given out to Shareholders in the form of Dividends and some of it is retained for growth Purposes. As the Retained Earnings are used for expansion and growth, that's why the formula for Growth is (ROE)*(Retention Ratio). When companies pay out large amount of dividends, it is left with minimal amount for retention which affects its growth rate and the rate tends to decrease.
If you look at the model of Constant Growth, also given in the question, the Growth Rate is deducted in Denominator. A lower growth rate will increase the denominator value and hence the stock price will go down.
2. Rearrange the formula for Constant Growth:
P0 = D1 / (Ke - g) OR Ke = (D1/P0) + g
⇒ Ke = (.85/20.5) + .095 = .1365 OR 13.65%.
Answer:
b. $14,200
Explanation:
The computation of the bad debt expense is shown below:
= Balance in the Allowance for Doubtful Accounts - wrote off accounts + written off - estimated amount
= $20,000 - $14,400 + $4,200 - $24,000
= $14,200
The computation of the estimated amount is calculated below:
= Ending balance of accounts receivable × uncollectible percentage
= $480,000 × 5%
= $24,000