Answer:
Total cash flow $54,613
Explanation:
The computation of the year 4 cash flow is given below:
Selling price of equipment $6,920
Book value at year 4 end $5,460
Capital gain $1,460
Tax on capital gain at 21% $306.6
So, net cash flow from the sale of equipment
= $6,920 - $307
= $6,613
Now year 4 cash flow is
Annual operating cash flow $42,000
Release of working capital $6,000
Net cash flow form sale of equipment $6,613
Total cash flow $54,613
Answer:
credit to Work in Process of $59,000.
Explanation:
Based on the information given the appropriate l journal entries to record these transactions would include a: CREDIT TO WORK IN PROCESS OF $59,000
Dr Finished goods $59,000
Cr Work in process $59,000
Dr Cost of goods sold $65,000
Cr Finished goods $65,000
Answer:
Yes, Stock A has higher dividend yield
Explanation:
given data
market risk premium = 6.0%
risk-free rate = 6.4%
A B
Beta 1.10 0.90
Constant growth rate 7 % 7%
to find out
does stock A has higher dividend yield than Stock B
solution
we get here Stock A rA = 6.4% + 1.1 × 6%
Stock A rA = 13.00%
and
Dividend yield of stock A = rA - g
Dividend yield of stock A = 13.00% - 7%
Dividend yield of stock A = 6%
and
for Stock B rB = 6.4%+ .9 × 6%
Stock B rB = 11.80%
and
Dividend yield of stock B = rA - g
Dividend yield of stock B = 11.80% - 7%
Dividend yield of stock B = 4.80%
so we can say Yes, Stock A has higher dividend yield
Answer:
1) The correct answer is letter "C": spending on goods to be used in future production.
2) The correct answer is letter "B": is considered unsold inventory and counted as a part of investment in current GDP.
Explanation:
1) The Gross Domestic Product (GDP) considers four (4) components: <em>Consumption, Investment, Government, </em>and <em>Net Exports</em> (exports-imports). Investments refer to all goods that are purchased to produce other goods in the future. Final goods to be used or to replace others do not fall into this category.
2) The output of a company is computed within the GDP. Even if the output is not sold after production but it is recorded as part of an organization's inventory, it will be considered in the calculation of the GDP of the year when the production of the good took place.