To get the growth rate, we will follow the Gordon Growth modelP= D/(K-G)whereP= stock value=$68D= Expected dividend=$3.85G= Growth rateK= required rate of returnG =K-(D/P)Substitute the given valuesG= 0.11-(3.85/68)
G= 5.34%The growth rate for stock required is 5.34%
Answer:
Contribution margin ratio = Contribution margin / Sales
Product C90B CMR = ($23,490 - $7,047) / $23,490 = $16,443 / $23,490 = 0.7 = 70%
Product Y45E CMR = ($34,800 - $13,920) / $34,800 = $20,880 / $34,800 = 0.6 = 60%
The rule, <em>the Higher the contribution margin ratio, the lower the Break-Even point. </em>So, if sales mix shifts to product C90B, overall Break-even point <u>Decreases</u>.
Jeff Company issues a promissory note to David Company to get extended time on an account payable. David records this transaction by debiting <span>Accounts Payable and crediting Notes Payable.
Hope this helps!!</span>
Answer:
A. This is a change in accounting principles
B.
Dr Common stock 6
Dr Paid-in capital—excess of par 24
Dr Retained earnings 5
Cr Treasury stock 35
Explanation:
A. This is a change in accounting principle
B. Entry to reclassify treasury shares as retired shares.
General Journal
Dr Common stock 6
Dr Paid-in capital—excess of par 24
Dr Retained earnings 5
Cr Treasury stock 35
Common stock ($1 par × 6million shares retired) $6 million.
Paid-in capital—excess of par
$900 million ÷ 225 million shares = $4
$4 × 6million shares retired = $24 million.
