Answer:
The answer is: C) PV of a perpetuity = StartFraction r Over Upper C EndFraction (I guess this means PV = r / C, which is FALSE)
Explanation:
The formula for calculating the present value of a perpetuity is:
PV = C / r
Where PV = Present Value, C = cash flow, r = discount rate.
A perpetuity is a stream of equal cash flows that lasts forever (perpetually).
The formula for calculating the present value of a perpetuity is simple, so there is no reason to spend time calculating the present value of each cash flow, since there are infinite cash flows.
A consol bond s a type of perpetuity issued by the British government (also by the US government)
A company has $100,000 in assets, 1000 shares outstanding, and no debt. If EBIT is $20,000, the interest rate on debt is 10% and its tax rate is 40%, then its EPS is 12 per share.
Earning Per Share (EPS) indicates the agency's profitability by means of showing how a great deal of cash a commercial enterprise makes for each proportion of its stock. The EPS parent is determined by way of dividing the employer's net income by using its outstanding shares of common inventory. however, it's miles taken into consideration the higher the EPS quantity, the more worthwhile the employer.
To find the ESP use the formula
ESP = Net Income / Common Share O/S- Net Income = 20000 - 0 -20000 * (.40) = 12000
ESP = 12000 / 1000 = 12 per share
Therefore Earning per share is 12 per share.
Earnings Before Interest and Taxes (EBIT) is a hallmark of an enterprise's profitability. EBIT may be calculated as sales minus charges with the exception of tax and hobby. EBIT is likewise referred to as running profits, operating earnings, and income before interest and taxes.
Learn more about EBIT here brainly.com/question/14565042
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Answer:
November 1, declaration of cash dividends
- Dr Retained Earnings account 7,000
- Cr Dividends Payable account 7,000
December 31, distribution of cash dividends
- Dr Dividends Payable account 7,000
- Cr Cash account 7,000
Explanation:
The cash dividends will decrease the retained earnings account, since retained earnings is an equity account, when it decreases it has to be debited.
Dividends payable account is a liability account created when the company declared the dividends and it is cancelled when the company pays the dividends.
Answer:
mixed is the right ans of this
Answer:
c. $87,000
Explanation:
The computation of the Arthur's basis in the partnership interest at the end of the year is shown below:
= His share of partnership liabilities + net operating income share + increased share in liabilities - distributed amount
= $60,000 + $12,000 + $20,000 - $5,000
= $87,000
Net operating income share is
= $40,000 × 30%
= $12,000
We simply applied the above formula
