Answer:
Maximum initial cost would be $58,116,883.12
Explanation:
1,790,000 increased at 3%
Ke 0.119 + 0.02 = 0.139
ER 0.15
Kd(after-tax) Kd(1-t) = 0.047
DR 0.85
WACC 0.06080
Now that we have the rate, we calculate the present value using the gordon method
1,790,000 / (0.06080-0.03) = 58,116,883.12
<u>Answer:</u>
<u>Closing entries
</u>
Date account and explanation Debit Credit
Dec 31 Service revenue 108000
Income summary 1080000
(To close revenue)
Dec 31 Income summary 72000
Supplies expense 6000
Salaries and wages expense 40000
Utilities expense 8000
rent expense 18000
(To close expense)
Dec 31 Income summary 36000
Owner's capital 36000
(To close income summary)
Dec 31 Owner's capital 22000
Owner's Drawing 22000
(To close withdrawal)
Answer
C. A portfolio made up of 60% stocks, 30% mutual funds and 10% Treasury bonds.
Explanation
In this option, the investment is more than 50% for the money placed in stocks and the prices for stock keep on fluctuating on daily basis. This is a highly risky investment though investments in stock can give a good return. To safeguard the amounts that were saved, a person has to avoid putting more investments on stock.
Answer:
C) The federal budget deficit is the year-to-year short fall in tax revenues relative to government spending (T < G + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.
Explanation:
Budget Deficit by definition is the shortfall in the budget as spending exceeds the budgeted tax revenues for the governments. They are indeed funded by government borrowing by issuing of bonds and borrowing money from the federal reserve.
The federal government debt or also called the national debt is the net accumulation of all the borrowed amount that is used by the government to deficit finance the budget in the current year and the previous years.
In return if a budget in a year turns surplus, that is the spending is less than revenue, it can help lower the national debt if the government policies allow.
Hope that helps.
Answer:
B. Comparison of recorded amounts of major disbursements with appropriate invoices.
