Answer:
Okay, but where is the question or it's free points?
Answer:
If the exchange rate between the US and Japan changes from $1=100 yen to $1=110 yen, American goods in Japan would increase their prices. This is so because more yen would be necessary to buy the same product. For example, if an American product cost $1, a Japanese could buy it with 100 Yen, but after the change in the exchange rate, it would cost 110 Yen.
Answer:
The cost of internal equity is 11.18%
Explanation:
The constant growth model of DDM can be used to calculate the price of a stock if the growth rate in the dividend is expected to remain constant. The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula for price today under DDM is,
P0 = D0 * (1+g) / r - g
We already know the P0, the D0 and the g. We can plug in these values in the formula to calculate r which is the cost of equity capital.
32 = 1.25 * (1+ 0.07) / (r - 0.07)
32 * (r - 0.07) = 1.3375
32r - 2.24 = 1.3375
32r = 1.3375 + 2.24
r = 3.5775 / 32
r = 0.11179 or 11.179%
Answer:
The amount of interest that ash should report as a supplemental disclosure of cash flow information is $ 30,000.
Explanation:
In income statement the amount of expenses are recorded keeping matching concept under consideration. However, in cashflow statement expenses that are paid in cash are shown as cash out flow.
Interest payment will be calculated as follow.
Opening balance $ 15,000
Interest expense $ 20,000
Closing Balance ($ 5,000)
Payment $ 30,000
The interest payment of $ 30,000 will be reported in cash flows statement.
