Answer:
$11,000
Explanation:
Given that,
Original cost of land to him = $33,000
Number of shares issued = 1,100
Par value of common stock = $10
The plot of land is exchanged for the shares of common stock. Hence, the value of land at the date of the stock issue is determined by multiplying the number of shares issued with the par value of the common stock. So that we can compare the original cost of land and value of stock issued.
Value of the land:
= Number of shares issued × Par value of common stock
= 1,100 × $10
= $11,000
Answer: E) The company expects a constant weighted average cost of capital.
Explanation: The explicit forecast period in most organisations are usually made between five to about fifteen years,this is to ensure that enough timeline is given to effectively capture all the necessary information to do proper forecast.
The only option that is not a desirable feature of the steady state is that. The company expects a constant weighted average cost of capital. All other options are desirable feature because they have positive impact on the business and will make a good forcast.
Answer:
option (c) 8 years
Explanation:
Data provided in the question:
Cost of the machine = $240,000
Useful life = 10 years
Salvage value = 0
Net income = $6,000 each year
Now,
Using the straight-line method of depreciation
Annual depreciation = [ Cost - Salvage value ] ÷ Useful life
= [ $240,000 - 0 ] ÷ 10
= $24,000
Thus,
Cash flow = $6,000 + $24,000
= $30,000
Therefore,
The payback period = ( Cost ) ÷ ( Cash flow )
= $240,000 ÷ $30,000
= 8 years
Hence,
the correct answer is option (c) 8 years
A decline in the real GDP that occurs for at least two or more quarters is called a depression. The correct option among all the options that are given in the question is option "b". There is a very thin line of difference between recession and depression. when the real GDP falls for a repeated number of periods, then it is depression.
