Which type of lending institutions are being described here?

Ayayai Inc. had the following balance sheet at December 31, 2019.

Mrrafil [7]

Answer:

(a) Increase in cash = $50,200

(b) Total Assets = Liabilities and Stockholders' Equity = $298,900

Explanation:

Note: There are errors as date and name inconsistency in the requirements in this question. The requirements are therefore correctly stated before answering the question as follows:

(a) Prepare a statement of cash flows for the year 2020 for Ayayai Inc.

(b) Prepare the balance sheet as it would appear as of December 31, 2020.

The explanation of the answer is now provided as follows:

(a) Prepare a statement of cash flows for the year 2020 for Ayayai Inc.

Note: See part (a) of the attached excel file for the statement of cash flows for the year 2020 for Ayayai Inc.

In the attached excel file, we have:

Increase in cash = $50,200

(b) Prepare the balance sheet as it would appear as of December 31, 2020.

Note: See part (b) of the attached excel file for the balance sheet as it would appear as of December 31, 2020.

In the attached excel file, we have:

Total Assets = Liabilities and Stockholders' Equity = $298,900

Download xlsx

8 0

3 years ago

ABC Corporation distributes property to its sole shareholder, Andre. The property has a fair market value of $350,000, an adjust

saul85 [17]

Answer:

ABC has a gain of $145,000 and Andre's dividend income is $130,000

Explanation:

Property ABC issued, has the following:

fair market value = $350,000

Adjusted basis = $205,000

Liability = $220,000

Calculate ABC's Corporation gain:

Gain = market value - Adjusted basis

= $350,000 - $205,000

= $145,000

ABC has a gain of $145,000

Calculate Andre's dividend income since he is the sole shareholder:

Dividend earnings = fair market value - liability

= $350,000 - $220,000

= $130,000

Andre's dividend income is $130,000

Correct option is D.

With respect to distribution, ABC has a gain of $145,000 and Andre's dividend income is $130,000

8 0

3 years ago

"Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 10%, and the risk-free rate o

Kaylis [27]

Answer:

4.5%

Explanation:

Stock R (Beta) = 1.5

Stock S (Beta) = 0.75

Expected rate of return on an average stock (Rm)= 10%

Risk free rate (Rf) = 4%

Required Return (Re) = Rf +(Rm-Rf) B

Required Return = 0.04 + (0.10-0.04) B

Required Return = 0.04 + 0.06B

Stock R = 0.04 + (0.06 * 1.50)

Stock R = 0.04 + 0.09

Stock R = 0.13

Stock R = 13%

Stock S = 0.04 + (0.06 * 0.75)

Stock S = 0.04 + 0.045

Stock S = 0.085

Stock S = 8.5%

Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.

= 13% - 8.5%

= 4.5%

7 0

3 years ago

All of the following are ways an organization that incorporates enterprise-wide risk management (ERM) with its strategic plannin

sergeinik [125]

All of the following are ways an organization that incorporates enterprise-wide risk management (ERM) with its strategic planning process improves its decision-making, EXCEPT It can eliminate risks to its business model.

A business model describes how an organization creates, delivers, or acquires value in an economic, social, cultural, or other context. The process of building and modifying business models, also called business model innovation, is part of business strategy.

The term business model describes a company's profit plan. Identify the products or services that the company plans to sell, the identified target markets, and the expected costs. Business models are important for both new and established companies.

In its simplest form, a business model provides information about an organization's target markets, the needs of those markets, and the role a company's products or services play in meeting those needs. Business model innovation describes the process by which an organization adapts its business model.

Learn more about business model brainly.com/question/27093440

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8 0

1 year ago

Which component is more likely to be biased if book values are used in the calculation of wacc rather than market values?

Luden [163]

<u>Common Stock</u> is more likely to be biased if book values are used in the calculation of WACC rather than market values.

<h3><u /></h3><h3><u>How Does Common Stock Work?</u></h3>

Security called common stock serves as a proxy for a company's ownership. Common stockholders decide on corporate policies and elect the board of directors. Usually, long-term returns from this type of stock ownership are higher.

Common shareholders, however, do not have any rights to a company's assets in the case of liquidation until all bondholders, preferred shareholders, and other debt holders have been fully compensated. On a company's balance sheet, common stock is listed under stockholders' equity.

<u>How Do I Cast a Ballot Using Common Stock at Corporate Meetings?</u>

Ordinary common shares typically have one vote per share, giving shareholders the ability to cast a ballot on corporate decisions, which are frequently made at a company's annual meeting of shareholders. If you're unable to vote in person, you can choose to have a representative vote on your behalf if you choose (along with others who cannot attend).

Votes may be taken on matters like whether to merge with or purchase a business, elect board members, or consent to dividends or stock splits.

Learn more about the WACC with the help of the given link:

brainly.com/question/14223809

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5 0

2 years ago