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lord [1]
3 years ago
11

Use the basic accounting equation to answer these questions. (a) The liabilities of Sunland Company are $94,000 and the stockhol

ders’ equity is $254,000. What is the amount of Sunland Company’s total assets?
Business
1 answer:
melomori [17]3 years ago
3 0

Answer:

The amount of Sunland Company’s total assets is $348,000.

Explanation:

In this question we use the accounting equation which is shown below:

Total assets = Total liabilities + Shareholder's equity

The total assets are the sum of the total liabilities and the shareholder's equity.

The liabilities and stockholder's equity is given, so the total assets equal to

= Total liabilities + Shareholder's equity

= $94,000 + $254,000

= $348,000

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The current (year 0) price of the shares of Company XYZ is $50. There are 1 million shares outstanding. Next year (year 1)’s div
otez555 [7]

Answer:

1. The dividend per share in year 2 would be $2.16.

The dividend per share in year 3 would be $2.3328

2. The market value of the firm is $50 million

3. The value of the firm next year after the payout is $ 54

Explanation:

1. In order to calculate the dividend per share in year 2 and the dividend per share in year 3 we would have to make the following calculation:

dividend per share in year 2=dividend per share in year 1*(1+Growth Rate)

dividend per share in year 1=$2

Growth Rate=Retention Ratio * ROE

Growth Rate=40% * 20%

Growth Rate=8%

Therefore, dividend per share in year 2=$2*(1+8%)

dividend per share in year 2=$2.16

dividend per share in year 3=dividend per share in year 2*(1+Growth Rate)

dividend per share in year 3=$2.16(1´8%)

dividend per share in year 3=$2.3328

2. In order to calculate the current market value of the firm we would have to make the following calculation:

market value of the firm=Currect Share Price * Number of outstanding shares

According to the given data:

Currect Share Price=$50

Number of outstanding shares=1 million shares

market value of the firm=$50*1 million shares

market value of the firm=$50 million

3. In order to calculate the value of the firm next year after the payout we would have to calculate first the rate of return as follows:

value of the firm =dividend per share in year 1/rate  of return-growth rate

$50* Rate of Return - 4 = $2

Rate of Return = 6 / 50

Rate of Return =12%

Therefore, value of the firm next year after the payout=dividend per share in year 2/rate  of return-growth rate

value of the firm next year after the payout=$2.16/0.12-0.08

value of the firm next year after the payout=$ 54

3 0
2 years ago
Which of the following is not a way to improve your credit?
inessss [21]

The way where the credit is not improved is that if we moving the debt around.

Information related to the credit score & creditworthiness:

  • The credit score is the mathematical expression that depends upon your creditworthiness.
  • Creditworthiness is the willingness of the lender for believing you to pay off the debts.

The credit should be improved by:

  • Having established accounts.
  • Bills are paid on time
  • Less balances.

But if the debt is moving around so this does not improve your credit.

Therefore we can conclude that the way where the credit is not improved is that if we moving the debt around.

Learn more about creditworthiness here: brainly.com/question/2254218

3 0
3 years ago
Read 2 more answers
State, in brief, with reasoning, whether following statement is correct/incorrect: “One cannot be everything to everyone, but ca
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Answer:

Yes the statement is correct.

Explanation:

The statement is given by Matt Cheuvrant. In business the statement is absolutely correct that you can not satisfy the need of all the customers. A business cannot offer a product at less than its cost if a customer cannot afford it. Also an organization cannot start manufacturing a product because one customer demands it. If the company decides to satisfy all his customers by offering a large variety of products it may result in establishing in-house competition resulting in declining profits from both the products. If the company tries to give everything to every one this enhances its risk of failure resulting nothing in its own hands.

Businesses should focus on a single product and try to create a niche market. The product should be unique and its features should be extensively different from the other competitive products available in the market. This creates heavy switching cost to customers which ensures the business that customers will retain loyal to it. You can everything for few customers. They will not want to leave you because of your product specific features that are not available in the market.

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You paid $25 for your ticket to the football game, only to see your favorite team losing 28-0 at the end of the first quarter. T
Alexus [3.1K]

Answer:

Sunk; disregarded

Explanation:

Sunk cost is cost that has already been expended and cannot be recovered. It shouldn't be considered when making decisions.

No matter how much one argues, one would not be able to recover the $25. Therefore, it is sunk cost.

I hope my answer helps you

8 0
3 years ago
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