Answer:
Cost of equity = 8.22%
Explanation:
Cost of equity = Dividend per share /current market value + growth rate of dividend
Cost of equity = 2/90 + 6%
Cost of equity = 0.0222 + 6%
Cost of equity =0.0222 + 0.06
Cost of equity = 0.0822
Cost of equity = 8.22%
Answer:
A) debit interest expense, $1000
Explanation:
to determine the accrued interest expense = $100,000 x 6% x 2/12 = $1,000
the journal entry should be:
December 31, 2018, accrued interest expense on note payable:
Dr Interest expense 1,000
Cr Accrued interest payable 1,000
Accrual accounting establishes that expenses must be recognize during the period that they occur regardless of when they are paid. So we must recognize 2 months worth of interest.
Answer:
where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.
Explanation:
Process costing can be regarded as accounting methodology which helps in tracing and accumulation of direct costs, s well s allocation of indirect costs of a manufacturing process. In this method, Costs are been assigned to products, and this is usually in a large batch, and could encompass an entire month's production.
It should be noted that process costing system is employed in those situations where where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.
<span>The goal of utility maximization is to allocate your resources in order to maximize your satisfaction.
Utility maximization is a concept which is used in the economics which explains that when a person is making a decision to purchase anything, he/she prefer to get the greatest value that is possible but at the least amount of money.
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