Answer:
value of the firm = 21.20 million
value of the firm = 20.80 million
Explanation:
given data
current profits = $400,000
annual rate = 4 percent
opportunity cost = 6 percent
solution
we get here value of the firm before pays out current profits as dividend is express as
value of the firm = current profits ( 1+opportunity cost ) ÷ ( opportunity cost - annual rate ) ................1
put here value
value of the firm = 
value of the firm = 21.20 million
and
value of the firm after pays is
value of the firm = current profits ( 1+annual rate ) ÷ ( opportunity cost - annual rate ) ................2
value of the firm = 
value of the firm = 20.80 million
Answer:
2. A result of recognizing revenues and expenses that arise from the same transaction.
Explanation:
Matching is a concept in accounting which favors the accrual accounting over cash basis of accounting.
It is a concept in which the cost incurred during the course of carrying out some activities that generate revenue is match to the revenue generated.
Hence Matching is a result of recognizing revenues and expenses that arise from the same transaction.
Answer:
Purchases= $57,530
Explanation:
Giving the following formula:
Production= 91,500*(1 - 0.18)= $75,030
Beginning inventory= $25,000
Desired ending inventory= $7,500
<u>To calculate the budgeted purchases, we need to use the following formula:</u>
<u></u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= 75,030 + 7,500 - 25,000
Purchases= $57,530
Answer:
The statement is true.
Explanation:
The investor aversion to risk must be compensated with an increased return to make it more feasible.
If all bonds' return were the same then, investor will not invest on high risk bonds.
Company's will not issue the bond to yield higher than they can pay nor higher if they can do it the same as AAA. They do it as the only way to attract investment to his business.
Answer:
Option "A" is the correct answer of the following question.
Explanation:
In the given scenario flyers are used to promote the sale of pizzas but not a part of the variable cost of pizzas, the cost of copies of flyers is a type of fixed advertisement expense.
Given:
Number of flyers = 200,000
Total cost of flyers = $4,000
$4,000 will be included in fixed costs.
So, option "A" is correct.
