Answer:
a.- r= 6% Value: 23.40
b.- r = 8% Value: 11.70
c.- r = 11% Value: 6.69
d.- r = 12% Value: 5.85
e.- r= 19% Value: 3.12
Explanation:
We will calcualte the gordon model for the different rates of return:
Dividend_1 is next year dividends.
If dividends raise by 4% then:
0.45 x 1.04% = 0.468
<u>now we calculate for the different returns:</u>
Answer: um i need you to ask the question so we can answer it
Explanation:
Answer:
The Journal entries are as follows:
(a)
Bad Debt Expense A/c Dr. $440
To Allowance for Doubtful Accounts $440
(To record the bad debts)
Workings:
Bad Debt Expense = 1% of Total revenue
= 0.01 × $44,000
= $440
(b)
Bad Debt Expense A/c Dr. $439.34
To Allowance for Doubtful Accounts $439.34
(To record the bad debts)
Workings:
Bad Debt Expense = 2% of accounts receivable
= 0.02 × $21,967
= $439.34
Answer:
If we are talking about corporate spending, then it's best to cut overhead costs, because direct labor or direct materials are harder to cut since a cut in these areas would cause a reduction in output production.
If we are talking about personal spending, then, it's best to cut sumptuary expenses like eating out, or taking expensive vacations. Utilities, rent, and debt are harder to cut.
